The Court of Appeal has scheduled further consideration for 28 May the petition filed requesting an order to nullify the decision taken by the Inland Revenue Department to impose withholding tax on national cricketers who have signed contracts with Sri Lanka Cricket (SLC), treating them as employees of the institution.
The writ petition was filed by Charith Asalanka and Dhanajaya De Silva as respective captains of the One Day International and Twenty20 cricket teams and the Test Cricket Team, challenging what they term as an arbitrary and unreasonable classification of national cricketers as employees of Sri Lanka Cricket (SLC) by the Inland Revenue Department.
The petition was taken up before a Court of Appeal bench comprising Acting President of the Appeals Court Justice Mohamed Laffar Tahir and Justice Priyantha Fernando.
During the hearing, President’s Counsel Nishan Premathiratne, appearing on behalf of the petitioners, submitted that the cricketers who filed the petition are not employees of Sri Lanka Cricket.
He further stated that under the Inland Revenue (Amendment) Act No. 45 of 2022, the Commissioner General of Inland Revenue had interpreted national cricketers as employees of Sri Lanka Cricket, which he claimed is a flawed interpretation.
The counsel pointed out that his clients are not entitled to benefits such as Employees Provident Fund (EPF) and other allowances, and categorizing them as employees of Sri Lanka Cricket without proper justification is legally unfounded.
President’s Counsel Kuvera de Zoysa, appearing for Sri Lanka Cricket, also informed court that the petitioners are not employees but independent service providers.
He explained that under the amended Inland Revenue Act of 2022, the Department of Inland Revenue had decided to treat national cricketers as SLC employees and to impose withholding tax on them starting from January 1, 2023.
Due to this issue, Sri Lanka Cricket has reportedly found itself in a position where it may not be able to make payments to players starting from November 2024, the President’s Counsel added.
Accordingly, he expressed support for the relief sought by the petitioners.
Meanwhile, Deputy Solicitor General Manohara de Silva, appearing on behalf of the respondents, stated that under the Inland Revenue (Amendment) Act, players who have entered into contracts with Sri Lanka Cricket are interpreted as employees.
Therefore, they are liable to pay taxes, he emphasized.
Following these submissions, the Appeals Court bench postponed further consideration of the petition until 28 May, on which date the Deputy Solicitor General is expected to present further arguments.
A total of 38 national cricketers, including players Angelo Mathews, Wanindu Hasaranga, Maheesh Theekshana, Pathum Nissanka, and Kusal Mendis signed a letter setting out the grievance and endorsing the petitioners to seek appropriate legal redress on the classification was also placed before Court during the previous hearing.
