Unfair Classification? Cricket Captains Take Legal Action Against Tax Department

COLOMBO (News 1st); A writ petition filed by Sri Lanka's national cricket captains, Charith Asalanka and Dhananjaya De Silva, was taken up for support before the Court of Appeal today. 

The petition challenges the Inland Revenue Department's arbitrary classification of national cricketers as employees of Sri Lanka Cricket (SLC).

The petitioners, representing the One Day International and Twenty20 cricket teams and the Test Cricket Team, sought to quash the Inland Revenue Department's decision and requested an interim order to suspend it. 

The petition was supported by a letter signed by 38 national cricketers, including Wanindu Hasaranga, Angelo Mathews, Maheesh Theekshana, Pathum Nissanka, and Kusal Mendis, outlining their grievances and endorsing the petitioners' legal action.

The petitioners argued that Sri Lanka's cricketers have historically been treated as independent service providers, not employees. 

They emphasized that the contracts between SLC and the players have always reflected this status. 

The court's attention was drawn to the uncertainty involved in cricketers' career progression and the nature of their contracts, which involve fees rather than salaries.

The petitioners also highlighted that the contracts facilitate the use of players' image rights, essential for broadcasting matches and global cricket events. They argued that the Inland Revenue Department's decision, made without giving the cricketers a hearing, was unreasonable and arbitrary.

The court was informed that the change in classification has created uncertainty for the cricketers regarding their contracts and statutory entitlements. The petitioners clarified that they were not seeking to avoid paying taxes, as they have been paying through self-assessment, and that the Auditor General has recognized them as independent service providers.

Sri Lanka Cricket (SLC) supported the petitioners' position, agreeing that the cricketers are independent service providers. The court scheduled the matter to resume on March 28, 2025, for further submissions.