Tax War: ICC wants India's revenue slashed, BCCI to contact British law firm

back icon
safari
09 Aug 2019 | 08:02 AM
authorPTI

Tax War: ICC wants India's revenue slashed, BCCI to contact British law firm

Meanwhile for the South Africa home series, Pune and Ranchi swap Tests due to Durga Puja

heart

Share

The BCCI is set to seek advice from an English law firm after the ICC threatened to deduct a part of the Indian cricket board’s annual revenue share in a continuing tussle on tax exemptions for events held in India. 

The Shashank Manohar-led International Cricket Council (ICC) wants complete tax exemption for all global events happening in India and is still awaiting waiver for the 2016 World T20 held in the country. 

According to the latest documentation of the July 6 Committee of Administrators (CoA) meeting here, the ICC wants to recover the tax burden for the 2016 event by slashing the BCCI annual share from the ICC revenue. 

The BCCI legal team has informed the CoA that the Board “ensured all efforts to make tax exemptions to ICC. Prior to this event (2016), these events have always received tax exemptions.” 

In the recorded minutes uploaded on the BCCI’s website, it is stated that the ICC wants to slash the BCCI’s annual revenue and recover the amount. 

“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,” it stated. 

The CoA has asked the BCCI legal team to contact an “English law firm” since the “agreement between BCCI and the ICC in relation to the hosting of the 2016 World T20 is governed by English law.” 

When contacted, a senior BCCI official said that if ICC has its way, the annual revenue of USD 405 million earmarked for the richest cricket board could be slashed by USD 40.5 million (10 per cent). 

“The BCCI can’t change the existing government tax laws. We have time and again intimated this to the ICC,” the official told PTI on Thursday. 

He agreed that unless the current tax law structure is changed or the government of the day agrees on a waiver, there could be problems in hosting of the next two big events in India -- the 2021 World T20 and the 2023 50-over World Cup. 

“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 BCCI official pointed out. 

“So why does BCCI need to carry their burden? In any case, we can’t violate government laws and the ICC chairman should be the first one to know that as he has also been BCCI president,” the official said. 

Deadlock on Azharuddin’s payments to continue 

------------------------------------------------- 

In other decisions, the BCCI will not clear the payments pending towards former India captain Mohammed Azharuddin after he was banned on match-fixing charges in 2000. 

While Azharuddin’s name is not mentioned in the minutes of the July 6 meeting, it states about CoA, having discussed “payments being not made to a certain retired senior cricketer.” 

“After some discussions, the CoA decided that no further decision is to be taken in this matter.” 

The senior official said that the player in question is Azharuddin. 

Orders by Ethics Officer on Conflict cases not to be on website 

------------------------------------------------------------------- 

The CoA has decided that there is no provision in the new constitution that requires the orders passed by the Ethics Officer to be published on the board’s website and henceforth only a summarised report will be made public. 

Also in the minutes of the June 29 meeting, it was decided by the Vinod Rai-led committee that from now on, any complaint filed against BCCI office-bearers or officials will have to be accompanied with a sworn statement from the complainant that he takes “responsibility and ownership of the contents of the complaints.” 

Pune and Ranchi swap Tests due to Durga Puja 

------------------------------------------------- 

Pune will now host the second Test between India and South Africa from October 10 to 14 instead of Ranchi which has been handed the third and final Test from October 19-23. 

The decision was taken at a CoA meeting on June 29 after the Jharkhand State Cricket Association expressed its inability to host on earlier dates as they are clashing with Durga Puja.

heart
shareGray Share
Tags
Mohammad AzharuddinBCCIICCDanger of revenue slashBritish firmDurga Puja

Related Articles

safari
NEWS
BCCI AGM approves 10 teams for 2022 IPL
It was also learnt that the general body decided in favour of Sourav Ganguly continuing as a director in the ICC Board
userPTI
24 Dec 2020
safari
NEWS
BCCI AGM: Ratification of IPL teams, tax issues, cricket committees on agenda
The biggest development could be the approval of new IPL teams but primarily from the 2022 edition
userPTI
23 Dec 2020
safari
NEWS
Shashank Manohar steps down as ICC chairman
Imran Khwaja will assume the responsibilities of the Chairperson until a successor is elected
userICC media release
01 Jul 2020
safari
NEWS
PCB wants written assurance from BCCI regarding clearance to play in two World Cups in India
Pakistan would go to India for the ICC events after it got complete assurance about the security and safety of its players and officials
userPTI
25 Jun 2020
safari
NEWS
Decision on T20 World Cup pushed to July
The ICC also decided to give the BCCI another six months to obtain mandatory tax exemptions for hosting tournaments
userPTI
10 Jun 2020
safari
NEWS
Key issues to be discussed at ICC board meeting on Thursday
The fate of the T20 World Cup in Australia, tax exemption for the 2021 World Cup are some of the topics on the table at the meeting
userPTI
27 May 2020
safari
NEWS
BCCI vs ICC tax issue: Both at loggerheads as battle continues
The ICC and BCCI have had a long standing feud on tax exemptions since the 2016 World T20 in India
userPTI
25 May 2020
safari
NEWS
"BCCI won't recognise recent ICC Board decisions"
CoA has conveyed to the ICC that BCCI will not be bound by decisions taken by them
userPTI
18 Oct 2019
safari
NEWS
Former players could soon be allowed to perform multiple roles
In the existing constitution, no person can perform multiple cricketing roles at the same time
userPTI
16 Oct 2019
safari
NEWS
ICC wants flagship event every year, BCCI says 'No'
New proposal calls for World T20 every year and 50-over World Cup every three years
userPTI
14 Oct 2019
logo
Cricket like never before
Follow us on
FacebookTwitterLinkedin
@ 2020 cricket.com | All rights reserved