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PAYE tax on judicial officers: Court of Appeal dismisses petitions by majority verdict
View(s):By Ranjith Padmasiri
In a majority decision, the Court of Appeal has dismissed three petitions filed by judicial officers associations seeking to prevent the imposition of the Advanced Personal Income Tax (APIT), formerly known as the PAYE tax, on judicial officers.
In a decision reached by a majority of judges on the five-member bench, it was decided that it was the responsibility of both the legislature and the executive to impose taxes and determine their percentages.
Among the petitioners were High Court Judges Association President Dr. Namal Bandara Balalle and its secretary, Sujeewa Nishshanka.
The three petitions were filed by the Sri Lanka Judicial Service Association, the High Court Judges’ Association, and the Labour Court Presidents’ Association.
The Court of Appeal President Bandula Karunarathna and Justice D.N. Samarakoon held that relief sought by the petitioners should be granted, while Justice Sobitha Rajakaruna, Justice Menaka Wijesundara, and Justice Neil Iddawala held that the application should be dismissed.
Justice Karunaratne held that in interpreting the provisions of the Inland Revenue (Amended) Act No. 45 of 2022, the relevant clauses had not been interpreted in such a way that judicial officers were subject to the payment of APIT.
Justice Wijesundara fully consented to the judgment by Justice Rajakaruna, while Justice Iddawala, though agreeing with the judgment, gave a separate verdict.
Justice Rajakaruna held that it was not ethical for the judiciary to examine the issue of the tax of juridical officers as it would set a bad example. Agreeing that the salaries of the judicial officers should be of acceptable standards, it would not be suitable for the judiciary to decide on those matters.
He held that the legislature and the executive should make necessary decisions, and the judiciary should not decide on matters that could harm its dignity.
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