DIALOG AXIATA PLC

Vs.

COMMISSIONER GENERAL OF INLAND REVENUE

COURT OF APPEAL
SAMARAKOON, J.
MAHENDRAN, J.
CA/TAX/12/2016
TAC/WHT/1/2014
OCTOBER 13,14, 2021

Tax Appeals Commission Act, No. 23 of 2011-Case stated-Inland Revenue Act, No. 10of2006, section 157(b)-Deduction of with holding tax-Meaning of the term "lottery"-Prize Competitions Act, No. 37 of 1957-Lotteries Ordinance, No. 8 of 1844, section 28

Further to obtaining the relevant permissions from the Western Provincial Council and paying 20% tax under the Prize Competition Act, No. 37 of 1957, the appellant conducted a prize competition called the "Lord of the Reload", under which every person who reloaded their mobile phone for a sum of Rs. 50 became automatically entitled to participate in a draw.

The assessor and thereafter the Commissioner General of Inland Revenue and the Tax Appeals Commission were of the opinion that the

aforesaid prize competition of the appellant was in fact a "lottery", which attracted the application of section 157(b) of the Inland Revenue Act, No. 10 of 2006, and required the appellant to deduct income tax at the rate of 10% on the gross payment of the pr