John Keells Holdings PLC vs. Commissioner General of Inland Revenue and Others – sllr 2020 volume 2 page 251

In the case between John Keells Holdings PLC and the Commissioner General of Inland Revenue and Others, the court addressed the issue of whether stamp duty on a share certificate for a bonus issue of shares should be calculated based on the par value or the market value of the shares. It was held that the duty must be computed using the par value, reaffirming the principle that ambiguity in taxing statutes must be resolved in favor of the taxpayer. The decision relied on the construction of the Stamp Duty (Special Provisions) Act, Stamp Duty Act, and related Gazette notifications, emphasizing that statutory ambiguity, when present in fiscal legislation, should favor the party liable to tax rather than the revenue authorities.

Samayawardhena J. — The findings established that the calculat