Couple sentenced to six months for evading VAT dues

October 8, 2024 at 12:48 PM

A couple who had operated a private business in Padukka has been sentenced to six months imprisonment for having failed to pay over Rs. 32 million in Value Added Tax (VAT) dues to the government nearly 10 years ago, it was reported. 

Colombo’s Additional Magistrate Bandara Illangasinghe suspended the couple’s request for five years to settle the arrears and instead ordered them to immediately settle the payments. 

Pointing out that the couple had failed to pay their VAT dues since 2014, the judge said granting extra time of five years would result in the failure to settle payments for a total of 15 years.

The Inland Revenue Department (IRD) had filed a case against the suspects for failing to settle their VAT due for three quarters of 2014 and four quarters of 2015. 

Taking up for consideration the case filed by the IRD, in October 2022, the court issued an order for the couple to settle their dues. An appeal made by the couple had also been dismissed in February 2024. A writ petition that was filed again at the Court of Appeal was also dismissed. 

Considering the facts presented to the court yesterday, the Colombo Additional Magistrate dismissed the request for extra time, ordered the couple to settle the VAT dues, and sentenced them to six months imprisonment. (Newswire)