Commissioner General of Inland Revenue vs Aitken Spence Travels Limited – CA TAX/0001/2021-2023

In the case between the Commissioner General of Inland Revenue and Aitken Spence Travels Limited, the issue concerned the interpretation of Section 13(ddd) of the Inland Revenue Act as it pertains to the eligibility for tax exemption—specifically, whether the exemption depends on services provided directly to foreign tourists or to Foreign Tour Operators (FTOs). It was held that the decisive factor rests on the receipt of foreign remittance from FTOs, irrespective of whether some services are carried out in Sri Lanka. The principles underpinning double taxation agreements and the status of the respondent as a dependent agent were also examined, but no conclusive finding on dependent agency was made due to insufficient evidence. The court upheld the Tax Appeals Commission’s legal reasoning