The International Cricket Council (ICC) has asked the BCCI to bear a tax liability to the tune of USD 21 million (Rs 150 crore) for conducting the 2021 World T20 and 2023 ODI World Cup. The BCCI representatives have apparently asked for time till the completion of general elections and the ICC has granted the Indian cricket board the time.
The ICC gets tax exemption from member nations for conducting global events but it didn’t get any for the 2016 World T20 as Indian tax laws don’t allow any such leeway. Consequently, the apex body of the game had lost quite a good chunk of fortune after hosting the last World T20 in India. The Indian government had refused to exempt the competition from tax and it has remained firm with its decision. The BCCI has tried its best to make the government soften its stance but so far it has not yielded the desired result.
Incidentally, non-tax exemption was one of the major reasons why the Formula One race was pulled out of India.
The issue of tax exemption was recently talked about at the ICC quarterly meeting which took place in Dubai last week. As per media reports, ICC chairman Shashank Manohar has told the BCCI that as per its rules, the Indian board will have to pay the tax liability in case it is not able to get tax exemption.
“Mr Manohar has categorically said that tax exemption is something BCCI needs to figure out,” a BCCI official told PTI.
“Since this is about tax laws and it can change with time, the BCCI thinks it’s prudent to wait till the general elections get over and take it from there,” he said.
The report further claimed that the BCCI could also ask the various sponsors to share the tax burden.
“There is a clause in the contract, where the sponsors may have to carry the burden of tax in case the hosting nation doesn’t have tax exemption laws. So BCCI will be within their rights to ask the various sponsors to share the burden,” the official said.
Vinod Rai, head of Committee of Administrators, also spoke on the issue, saying:
“Tax laws are complicated. I will only comment on the issue once I am aware of all the details. However, I don’t think it’s an issue that can’t be sorted out.”