Rhode Nielson A/S vs Commissioner General of Inland Revenue – CA TAX/28/2014-2020

In the case between Rhode Nielson A/S (Appellant, a Danish non-resident company) and the Commissioner General of Inland Revenue, Inland Revenue Department, Sri Lanka (Respondent), the court addressed whether the Appellant was liable to deduct and remit withholding tax under Section 90(1) of the Inland Revenue Act No. 38 of 2000 (tax year 2005/06) and Section 95(1) of the Inland Revenue Act No. 10 of 2006 (tax year 2006/07) on payments made to foreign shipowners. The central issue involved the construction of the terms “person in Sri Lanka” and “pays or credits” under the statutory provisions, and whether evidence existed showing the crediting/payment occurred in Sri Lanka to trigger tax liability. It was held that there was no proof the relevant crediting occurred in Sri Lanka, and Rhode N