BCCI questions Shashank Manohar's dual stand in tax exemption battle with ICC
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BCCI office-bearers have questioned ICC's plans of trying to slash their revenue to cut the deficit for the 2016 World T20 tax, by citing Shashank Manohar was the BCCI president at that time. A senior official pointed out that it was Manohar who was taking financial decisions in the BCCI.
The 10% tax paid by the ICC to Indian tax authorities has resulted in a revenue loss of $20-30 million for the ICC in 2016. Earlier in the past, these events were exempted from tax, but the Indian government's stance changed in 2016, which forced the BCCI to withhold 10% of the amount payable by the broadcaster Star Sports to the ICC. It also emerged that India could be in danger of losing out on hosting the 2021 Champions Trophy (which was since replaced by the T20 World Cup) as well as the 2023 World Cup. The ICC management had been directed to seek alternative venues if the issue was not resolved.
While the BCCI "made all efforts" with the government to try and ensure a tax exemption, the tax authorities have not budged at all and unlike the 2006 Champions Trophy and 2011 ICC World Cup, the ICC had to pay off the bills. Citing the same, the BCCI decided to seek the opinion of an English law firm about their legal options, since the 2016 event agreement between the board and the ICC was governed by English law.
All said and done, some of the office-bearers are also fuming at the stunning betrayal by ICC president Shashank Manohar who was at the helm of the affairs in BCCI in 2016. A senior BCCI official told ToI that Manohar who was well aware of the way the tax policy works in India and now he decided to turn his back on India.
"Shashank knows the facts better than the other ICC people because he himself was the BCCI President during the T20 World Cup and took all the financial decisions. You can't ignore the fact that the agreements were drawn up during the phase when the BCCI was getting a lion's share of the ICC revenues. They ended up changing the revenue model but did not consider its effects on India. If Australia is required to only make best endeavours for tax exemptions, why should the BCCI be required to ensure total exemption?" the official enquired, reported ToI.
Another official added that the ICC Chairman should have recused himself when a call was being made on the matter as Vidarbha Cricket Association was paid a hefty amount during that World Cup for organising the women's games and other matches even though it did not require that much of a cost.
"Why did Shashank ensure that Vidarbha Cricket Association was paid a certain amount during that World Cup for organising the women's games and other matches even though it did not require that much of a cost? He has worn the maximum hats in this entire transaction or sequence of events and he should have recused himself," the official pointed.
"ICC has become a directionless organisation and if they are not careful, the cricketing world may be looking at developments not conducive to its health," the official said.
Meanwhile, another senior board official had said that the ICC was free to move future tournaments out of India because any matter related to tax needed the government's approval and external pressure would not help.
"We will abide by what the Tax Department and the Ministry decides on this. We would love for the World Cup to take place here, but if the ICC wants to play hardball, they must be ready for everything. If they want to take the ICC tournament out of India, it's fine. Let BCCI then take the revenue out of the ICC and see who loses more.
"Those in-charge of administration are trying to take a policy decision without jurisdiction to do so. The ICC will find it difficult to hold the BCCI to those decisions since a lot of these decisions do not have the approval of the board," the official said.
