Board of Control For Cricket in India (BCCI) could lose the 2021 T20 World Cup hosting rights as it has failed to clear the tax exemption trouble highlighted by the International Cricket Council (ICC). In the past few weeks, the Indian cricket board and the global governing council engaged in some blunt exchange of e-mails regarding the tax issue.
The Indian cricket board had notified the council about ‘force majeure’ due to the novel coronavirus pandemic situation and requested for extension of the deadline till June 30. The board had mentioned that they have moved to the Indian government, however, in the current crisis situation with no officials available it might take some time to get a clearance.
ICC clarified after BCCI notification they may terminate the hosting rights
ICC general counsel has notified the Indian cricket board that in wake of their ‘force majeure’ the governing council as an obligation of the Host Agreement and IBC is entitled to terminate the hosting rights. The council also mentioned that the board had enough time to arrange tax solution after the 2016 World T20.
“In light of the BCCI’s notification of force majeure, we would highlight the obligation on the BCCI… of the Host Agreement and that IBC (ICC Business Corporation) is entitled to terminate the agreement with immediate effect at any time from 18 May 2020,” Jonathan Hall, the ICC’s general counsel was quoted as saying by espncricinfo.
“The BCCI has clearly had many years to arrange the tax solution… which is why the agreement asks for it to be provided ….no later than 18 (eighteen) months prior…. and why the BCCI was required to provide it by 31 December 2019. In such circumstances IBC is not prepared to agree to the requested extension to June 30, 2020 or 30 days after the lockdown is lifted whichever is later.
“In the meantime, all of IBC’s rights are reserved in full including the right to challenge whether or not a valid force majeure exists.”
The governing council had suffered between US$20-30 million loss during the 2016 T20 World Cup in India after the board failed to secure the tax exemption. Furthermore, the Indian cricket board also have the hosting rights of the upcoming 50-World Cup, which might also stand terminated.