BCCI to consult London-based law firm after ICC plans to slash Indiaâs revenue
After the ICC threatened to deduct a part of the BCCI's annual revenue in a continuing tussle on tax exemptions for events held in India, the latter is set to consult an English law firm. The BCCI legal team has informed the CoA that the board 'ensured all efforts' to make tax exemptions to ICC.
The International Cricket Council is adamant about the fact that there should be complete tax exemption for all global events happening in India and is still awaiting waiver for the 2016 World T20 held in the country. While the sports ministry outrightly denied doing it, all pressure by the BCCI and the ICC ended up having no value. However, the ICC threatened to deduct a part of the Indian cricket boardâs annual revenue share which, of course, didn't go down well with the Indian board, reported Sportstar.
The BCCI legal team has informed the CoA that the Board âensured all efforts to make tax exemptions to ICC. Prior to this event (2016), these events have always received tax exemptions.â Furthermore, in the recorded minutes uploaded on the BCCIâs website, it is stated that the ICC wants to slash the BCCIâs annual revenue and recover the amount.
âFor the 2016 event, tax authorities directed that 10 per cent of the amount payable by ICCâs 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,â it stated.
After getting to know ICC's plans, the CoA asked the BCCI legal team to contact an English law firm since the âagreement between BCCI and the ICC in relation to the hosting of the 2016 World T20 is governed by English law.â
A senior BCCI official was quoted as saying that if ICC has its way, the annual revenue of USD 405 million earmarked for the BCCI could be slashed by USD 40.5 million (10 per cent).
âThe BCCI canât change the existing government tax laws. We have time and again intimated this to the ICC,â the official said.
However, the official shared his concerns 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 50-over World Cup in 2023.
âNormally ICC seeks exemption on excise duties for importing TV production equipment. But in this case Star (Sports) which also has the BCCIâs home match rights has a set up in India. So why does BCCI need to carry their burden? In any case, we canât violate government laws and the ICC chairman should be the first one to know that as he has also been BCCI president,â the official said.
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