The Court of Appeal has issued a writ order quashing the decision of the Commissioner General of Inland Revenue to classify Sri Lanka’s national cricketers as employees for the purpose of imposing Personal Income Tax.
The ruling was delivered on Monday (31) following petitions filed by several national players challenging the Inland Revenue Department’s (IRD) decision.
The dispute centred on the classification of national cricketers who are contracted to Sri Lanka Cricket. The players challenged the IRD’s position that their contractual relationship with SLC made them employees and therefore liable for Advance Personal Income Tax (APIT).
During earlier proceedings, counsel representing the cricketers argued that national players had been treated as Independent Service Providers for more than 15 years, and that the IRD had subsequently reclassified them as employees in order to impose APIT.
The case also followed an amendment to the Inland Revenue Act which expressly categorises “sports persons” as Independent Service Providers, who are not subject to APIT.
However, the IRD, represented by Deputy Solicitor General Manohara Jayasinghe, maintained that the amendment did not apply to the petitioners. The IRD also argued that national cricketers should be considered employees because of their contractual relationship with Sri Lanka Cricket.
The Court of Appeal, however, has now quashed the Commissioner General’s decision, marking a significant legal victory for the national cricketers.
The writ applications were heard before Court of Appeal President Justice Rohantha Abeysuriya, PC, and Justice K. Priyantha Fernando.
