The Supreme Court has ruled that judicial officers are liable to pay income tax and that Advance Personal Income Tax (APIT) can lawfully be deducted from their remuneration, dismissing three appeals filed by associations representing judicial officers.
The judgment, delivered on Sept. 15, 2026, concerned appeals filed by representatives of the High Court Judges’ Association, Judicial Service Association and Association of Judicial Officers of Labour Tribunal. The cases challenged a 2023 Court of Appeal decision dismissing applications against the imposition and deduction of APIT from judicial officers.
The five-member Supreme Court bench comprised Chief Justice P. Padman Surasena and Justices A.L. Shiran Gooneratne, Janak De Silva, Mahinda Samayawardhana and Arjuna Obeyesekere.
The judicial officers had argued that they were not employees of the state or any other person and that treating them as employees for tax purposes was incompatible with the constitutional principle of judicial independence. They sought to stop future APIT deductions and recover amounts already deducted.
However, Justice Janak De Silva held that the Inland Revenue Act does not create an employer-employee relationship between judicial officers and the respondents in the conventional sense. Instead, it recognises who pays their salaries for the limited purpose of identifying the party responsible for deducting APIT.
The court held that the application of the Inland Revenue Act to judicial officers does not violate the Constitution, noting that the tax is generally applicable and non-discriminatory and does not amount to a reduction of judicial remuneration that would affect judicial independence.
Answering the key questions of law, the court ruled that High Court judges, district judges and magistrates are liable to pay income tax on their remuneration and that the authorities are entitled to deduct APIT from that remuneration.
The judgment nevertheless acknowledged the financial difficulties faced by judicial officers following the imposition of income tax. Justice De Silva said the solution was not to exempt judges from a generally applicable tax, but to ensure that judicial officers are adequately remunerated in recognition of their responsibilities and their distinct position within the national wages policy.
The three appeals were dismissed without costs. Chief Justice Surasena and Justices Samayawardhana and Obeyesekere agreed with Justice De Silva’s judgment.I can also make the strongest angle the court’s remarks on judges’ salaries and the need for adequate remuneration. (Newswire)
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