Sri Lankan Cricketers Challenge Tax Status in Court: What’s at Stake?

In a significant legal move, Sri Lankan cricketers have taken their tax dispute with the Sri Lanka Cricket and the Inland Revenue Department to the Court of Appeal. They argue for recognition as independent service providers rather than employees, which could impact their tax liabilities. The case has seen support from SLC lawyers, but the Solicitor General's Department maintains that the players are employees under the Inland Revenue Act. An interim settlement has been reached, affecting tax deductions moving forward. The next court dates are set for November, promising further developments in this intriguing case.
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Sri Lankan Cricketers Challenge Tax Status in Court: What’s at Stake?

Cricketers Seek Legal Clarity on Tax Status


Colombo: A group of Sri Lankan cricketers has approached the Court of Appeal to resolve a dispute regarding personal income tax obligations with the Sri Lanka Cricket (SLC) and the Department of Inland Revenue (IRD).


The players, including both male and female athletes, filed their case in March, arguing that they should be classified as independent service providers rather than employees of the SLC for tax purposes.


Notable players such as Dhananjaya de Silva, Charith Asalanka, and women’s team members Chamari Atapattu and Anushka Sanjeewani are among those seeking this recognition.


Legal representatives for the SLC have expressed support for the cricketers' claims.


Conversely, the Solicitor General's Department contends that the players are considered employees under the Inland Revenue Act due to their signed contracts with the SLC.


During the court session on Tuesday, both parties reached a temporary agreement, according to the lawyers involved.


This settlement stipulates that the IRD will begin deducting Advance Personal Income Tax (APIT) from the players starting in June, while suspending the collection of APIT for the fiscal years 2022/23 and 2023/24 until the case is resolved.


The next hearings for this case are scheduled for November 6, 14, and 18, as stated by the legal representatives.


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