A temporary settlement was reached Tuesday before the Court of Appeal in a case filed by national cricketers challenging the Inland Revenue Department’s classification of them as employees of Sri Lanka Cricket (SLC) for tax purposes.
The writ petition was filed by Charith Asalanka and Dhananjaya de Silva, captains of Sri Lanka’s ODI/T20 and Test teams respectively. The players argued the Inland Revenue Department’s move to impose Advance Personal Income Tax (APIT) by treating national cricketers as employees was arbitrary and unreasonable.
The case was heard before a Court of Appeal bench comprising Acting President Justice Mohamed Laffar Tahir and Justice Priyantha Fernando.
During the hearing, the Inland Revenue Department proposed a temporary settlement. Under the terms agreed upon by the parties, Sri Lanka Cricket will make the necessary payments to the players, and the relevant tax amounts will be remitted to the department beginning in June.
If the court later rules in favor of the petitioners, any taxes withheld will be refunded.
Attorney Nishan Premathiratne, appearing for the petitioners, told the court that national cricketers have consistently paid personal income taxes as independent service providers. He also presented details of the amounts paid by the players over the years. Premathiratne said that in light of the temporary settlement, the petitioners would not seek interim relief at this stage.
President’s Counsel Kuvera de Zoysa represented SLC. All counsel confirmed their agreement to the proposed settlement.
The bench ordered that objections be filed by August 29, with counter-objections due by September 29. The court issued notice to proceed with the case and scheduled the next hearing for November 6.
Nearly 20 cricketers were present in court for the hearing.
A letter signed by 38 national players, including Wanindu Hasaranga, Angelo Mathews, Maheesh Theekshana, Pathum Nissanka, and Kusal Mendis, supporting the petition was submitted to the court in March.
The petitioners contend that national cricketers have historically been treated as independent service providers and not as employees under their contracts with SLC. (Newswire)
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