Colombo Additional Magistrate Bandara Ilangasinghe on Tuesday ordered the directors of the Randenigala Distilleries Lanka (Pvt) Ltd to appear before court on the 17th of December.

The order was issued against directors Sarath Kumara Wijewikrama, Buddhika Wijewikrama, and another director of the company over allegations of evading taxes amounting to Rs. 1.35 billion.

The case, filed by the Commissioner General of Inland Revenue, alleges that the company evaded Rs. 1,358,773,144 in income tax, VAT, and nation-building tax between 2012 and 2015.

During thehearing, only one director had appeared in court. Lawyers representing the respondents informed court that the accused were prepared to pay the outstanding taxes within a week.

Attorney Dinesh Perera, appearing on behalf of the Commissioner General, stated that if the taxes are paid, the department’s stance on the matter could be presented at the next hearing.

After considering submissions from both parties, the Additional Magistrate instructed the respondents to make the tax payments before the next hearing and present relevant reports to the court. (Newswire)

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Alcohol production at two of the main distilleries of Sri Lanka, which was temporarily suspended by the Excise Department earlier today, has resumed.

The Excise Department announced that alcohol production at W.M. Mendis & Co. and Randenigala Distilleries resumed after the two companies settled tax arrears amounting to Rs. 116 million.

Earlier today, the department said had temporarily suspended alcohol production at the two main distilleries due to the failure to pay taxes.

In November, W M Mendis & Co Ltd and Randenigala Distilleries Lanka (Pvt) Ltd were among the five companies whose licences were suspended by the Excise Department. 

At the time, the Department said that the licences of the five liquor manufacturing companies were suspended after their annual licences had not been renewed due to the failure to pay tax arrears. 

Following the suspension, State Minister of Finance Ranjith Siyambalapitiya informed the Parliament that the five liquor production companies owed tax arrears amounting to Rs. 2,715 million to the government.

The State Minister further said that the total tax default with the three per cent penalty for default stands at Rs. 6,721 million. (NewsWire)

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