The Court of Appeal has sought clarification from the Inland Revenue Department (IRD) on whether the newly enacted amendment to the Inland Revenue Act affects its position in the writ applications filed by Sri Lanka’s national men’s and women’s cricket captains over the deduction of Advance Personal Income Tax (APIT).
The applications were taken up before Court of Appeal President Justice Rohantha Abeysuriya, PC, and Justice K. Priyantha Fernando.
The Court questioned the IRD, through Deputy Solicitor General Manohara Jayasinghe, on whether it would reconsider the decision being challenged in light of the recent amendment, which specifically categorises “sports persons” as Independent Service Providers (ISPs), a category not subject to APIT.
The Deputy Solicitor General submitted that the amendment does not apply to the petitioners, arguing that national cricketers are employees due to their contracts with Sri Lanka Cricket and requested the Court to proceed with delivering its judgment.
Appearing for the male captains, Counsel Nishan Sydney Premathiratne argued that Parliament introduced the amendment to resolve disputed and uncertain areas of the law. Referring to the Hansard, he submitted that sports persons, including cricketers, have now been expressly recognised as Independent Service Providers alongside professionals such as doctors, lawyers, architects, videographers and singers.
Counsel further argued that for more than 15 years cricketers had been recognised as Independent Service Providers, and that the Inland Revenue Department had unlawfully and arbitrarily reclassified them as employees solely to impose APIT. He also told Court that professional payments to players had been withheld for seven months, causing significant hardship.
The Court informed parties that it had already prepared its judgment but had delayed delivering it pending clarification from the Inland Revenue Department.
Both sides were granted one week to file further submissions, and the Court fixed August 31, 2026, for judgment. (Newswire)