The Colombo Magistrate’s Court handed down a six-month jail sentence to businessman Arjun Aloysius and two others for their involvement in a case of value-added tax (VAT) evasion amounting to Rs. 3.5 billion. The tax default was connected to W.M. Mendis Distilleries, a company owned by Aloysius. The Inland Revenue Department initiated the case against the individuals, accusing them of deliberately evading VAT payments over an extended period.
The court’s ruling emphasized the serious nature of tax evasion, holding the individuals accountable for failing to comply with legal tax obligations. In addition to the jail sentence, the court imposed a fine on each defendant, further highlighting the government’s stance on tackling financial fraud and tax-related offenses.
The verdict marks a significant step in enforcing financial regulations and serves as a warning to other businesses and individuals about the consequences of neglecting tax payments. The case has drawn attention due to Aloysius’s high-profile involvement in previous financial controversies, including the Central Bank bond scam. The sentencing is seen as part of broader efforts to uphold transparency and accountability in the financial sector.
