Sri Lankan cricketers set legal proceedings on tax issues related to SLC and the IRD. The case, filed in March, questioned how the players are viewed in respect of obligations related to taxes. The group of players, which boasts a few big names such as Dhananjaya de Silva, Charith Asalanka, Chamari Athapaththu, and Anushka Sanjeewani, postulate that they should be considered independent service providers once they are with SLC and not employees.
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They state that their income from playing cricket for Sri Lanka ought not to be taxed like that of any other employee. The cricketers have gone ahead to challenge the IRD for deducting Advance Personal Income Tax (APIT) from their payments. The Solicitor General’s Department counters that by virtue of the contracts the players have entered into with SLC, they fall within the purview of the definition of an employee under the law.
During the hearing on Tuesday, a temporary arrangement going forward was arrived at by the court where it was agreed the IRD will only start deducting APIT from June onwards and was instructed to put on hold any attempts to collect back taxes for the years 2022/23 and 2023/24 until the matter is resolved.
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This means the players will have some time to settle the question as to their employment status with the legal facets being thoroughly considered. The Court of Appeal has also fixed dates for further hearings on November 6, 14, and 18, allowing parties to get prepared.
