
The Court of Appeal has called on the Inland Revenue Department (IRD) to clarify whether the recent amendments to the Inland Revenue Act could provide a solution to the tax dispute arising from the department's decision to impose taxes on Sri Lanka national cricket players.
The matter was taken up before a Court of Appeal bench comprising President of the Court of Appeal Justice Rohana Abeysooriya and Justice Priyantha Fernando.
The petition was filed by Sri Lanka Test captain Dhananjaya de Silva, then ODI captain Charith Asalanka and several members of the national women's cricket team, seeking a writ order to invalidate the decision of the Commissioner General of Inland Revenue to treat them as employees of Sri Lanka Cricket (SLC) and deduct Advance Personal Income Tax (APIT) from their payments.
During the hearing, court observed that the recent amendments to the Inland Revenue Act had introduced a separate category for independent service providers and that individuals falling under this classification were not liable for APIT.
The bench questioned Deputy Solicitor General Manohara Jayasinghe, appearing on behalf of the Commissioner General of Inland Revenue, as to whether the petitioners' issue could be resolved under the amended provisions.
Responding to the bench, the Deputy Solicitor General submitted that the amendments could not be applied to the present dispute. He argued that national cricketers are contracted with Sri Lanka Cricket and therefore do not come within the category of independent service providers covered by the amendment.
Appearing for the petitioners, Attorney Nishan Sydney Premathiratne submitted that the recent amendments were applicable to the players, maintaining that they are not employees of Sri Lanka Cricket but independent service providers.
Counsel further informed court that payments due to the players had been withheld as a result of the tax dispute, causing them considerable inconvenience.
The Court of Appeal directed both parties to file any written submissions within one week and fixed August 31 for the delivery of its order.





















