ICC asks BCCI for tax deduction compensation, issues 2023 World Cup ultimatum
The ongoing tax issue, meanwhile, could jeopardize India's hopes of hosting the 2021 Champions Trophy and the 2023 50-over World Cup.
Published - Dec 22, 2018 10:16 am | Updated - Dec 22, 2018 11:00 am
The ongoing tussle between the International Cricket Council (ICC) and the BCCI over the tax issues just seems to have no end. The ICC suffered a revenue shortfall after the Indian government refused to exempt the 2016 World Twenty20 competition held in the country from tax and there has not been any change in that stance. The BCCI has tried its best to persuade the government from changing its stance but without any success.
The ICC, on its part, is in no mood to stay patient as the governing body has asked the Indian board to cough up US$23m (roughly Rs 160 cr) before December 31 to compensate for the tax deductions incurred in hosting the last World T20. The ICC is hopeful of getting compensation from the BCCI after not getting the tax exemption from the Indian government two years ago.
Star TV, the official broadcast rights holder of all ICC tournaments, had deducted all taxes before paying the ICC for the competition. The apex body now wants the BCCI to compensate for it. The ICC had pointed out its demand in the minutes of its board meeting in Singapore in October.
The Indian board, now governed by the Supreme Court-appointed Committee of Administrators, has less than 10 days left to comply with the ICC’s demand. In case the BCCI fails to meet the demand, the ICC has warned it will deduct that amount from India’s revenue share for the current financial year.
BCCI defends its stance
According to Cricbuzz, the BCCI, on the other hand, has asked the ICC to share the details where it is recorded that India had agreed to tax waiver. The BCCI has vehemently denied that that former president N Srinivasan had told the ICC that BCCI would compensate it for tax deductions should they not receive a waiver from the government.
The BCCI is convinced that it would not pay the ICC any amount if the latter fails to share the details over the tax issue. Not only that, but the BCCI can also take legal actions against ICC if the governing body deducts money from India’s revenue.
The ongoing tax issue, meanwhile, could jeopardize India’s hopes of hosting the 2021 Champions Trophy and the 2023 50-over World Cup. Both the competitions are scheduled to be held in India. However, the ICC has made it clear that it would be compelled to look at other options if BCCI does not clear the pending dues and the Indian government does not change its stance.
~ Written by Bijoy
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