ICC wants to slash BCCI’s revenue by 10% to recover tax burden of 2016 World T20
unless the current tax law structure is changed or the government of the day agrees on a waiver, India could face problems in hosting the big events in the near future.
The tussle between the International Cricket Council (ICC) and the Board of Control for Cricket in India (BCCI) continues over tax exemption in the ICC events. The world governing body has threatened to deduct a part of the Indian cricket board’s revenue share. They are willing to recover the tax exemptions over the ICC events held in India. The BCCI meanwhile is set to seek advice from an English law firm over the same.
Rather this tussle between the two powerhouses is going on for a long time. The ICC wants tax exemptions from all the global events happening in India. It is also still awaiting the waiver for the World T20 which took place in 2016 in India. According to the latest details of the July 6 Committee of Administrators meeting, the ICC is in favour of slashing the BCCI’s revenue to recover the tax burden of the tournament.
“For the 2016 event, tax authorities directed that 10 per cent of the amount payable by ICC’s broadcaster (Star Sports) to ICC under media rights agreement (MRA) should be withheld. The CoA was informed that ICC is now attempting to recover the same amount by deducting the same amounts payable by ICC to BCCI,” the minutes of meeting uploaded on BCCI’s website stated.
BCCI’s revenue could be slashed by USD 40.5 million
Meanwhile, the CoA has asked the BCCI legal team to contact the British firm law as the agreement between the two parties to host the 2016 World T20 is governed by English law. According to a senior BCCI official, if the ICC has its way in the matter, the BCCI’s annual revenue share of USD 405 million will be slashed by USD 40.5 million.
“The BCCI can’t change the existing government tax laws. We have time and again intimated this to the ICC. Normally ICC seeks exemption on excise duties for importing TV production equipment. But in this case Star (Sports) which also has the BCCI’s home match rights has a set up in India,” the official was quoted as saying by The Hindu.
Moreover, the official also agreed that unless the current tax law structure is changed or the government of the day agrees on a waiver, India could face problems in hosting 2021 World T20 and the 2023 50-over World Cup.
Download Our App