Cricketers’ tax case to resume on June 3
The writ application filed by three Sri Lankan cricket captains seeking relief regarding tax obligations and contractual agreements with Sri Lanka Cricket (SLC) will be taken up at the Court of Appeal on June 3, with the Attorney General’s opinion.
When the case was heard this week at the Court of Appeal before Acting Chairman Mohamed Laffar and Judge K.P. Fernando, Deputy Solicitor General Manohara Jayasinghe, appearing for the State, suggested that SLC resume paying cricketers’ salaries after deducting taxes from this month.
The salary payments of cricketers contracted by SLC have been suspended since December last year, pending completion of the writ application hearings.
Appearing on behalf of the Inland Revenue Department, Auditor General’s Department, and Attorney General’s Department, DSG Jayasinghe also suggested the court exempt SLC from further legal action until the hearing concludes. He proposed that SLC complete outstanding payments after tax deductions and resolve any additional labour issues. He stated that the Inland Revenue Department would issue a statement regarding tax reevaluation and that written submissions would be presented at the next hearing.Legal Arguments
The petitioners’ legal representatives argued that the cricketers’ earnings have been subjected to taxation in contradiction to local Inland Revenue regulations. They clarified that cricketers contracted by SLC do not fall into the category of permanent employment and should be classified as service providers according to their contracts with the Board.
The cricketers have sought court relief to prevent the Inland Revenue Department from categorizing them as permanent employees of SLC. The case is expected to set significant precedent regarding the employment status of national cricketers in relation to tax obligations and contractual agreements with Sri Lanka Cricket.
Separate writ applications were filed by Sri Lanka cricket white-ball captain Charith Asalanka, and Sri Lanka Test captain Dhananjaya de Silva, and by Chamari Athapaththu, the captain of the national women’s cricket team.
President’s Counsel Kuvera de Zoysa, who appears for the third to 18th respondents, the President and Executive Committee of SLC, presenting submissions, maintained the position that the petitioners are not permanent employees but rather independent service providers of SLC.
Kuvera de Zoysa PC with Pasindu Bandara and Sajana de Zoysa, on instructions of Sanjay Fonseka, represented SLC. Deputy Solicitor General Manohara Jayasinghe appeared for the State.