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BCCI, ICC get into ugly war of words for tax exemption letter

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BCCI has withheld Tax Exemptions Letter from 2016

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BCCI, ICC get into ugly war of words for tax exemption letter

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SportsCafe Desk

05/24/2020

The BCCI has objected in a loud tone after ICC Business Corporation sent a letter to them asking for clarification regarding the delayed tax exemptions letter from the Indian Government. The BCCI took objection to the fact that IBC refused to give them any further extension despite the pandemic.

The BCCI was supposed to send the tax exemption letter from the Indian Government by 18 May, 2020, in accordance with clause 20.2 for the 2021 T20 World Cup but the ongoing Coronavirus pandemic resulted in the board failing to submit the same. They cited the fact that the government is fighting a bigger battle at the moment, which means a ‘force majeure’ should be cited for the time being. The ICC, however, decided to have none of it, with the IBC, a business partner of ICC, sending a letter of harsh warning.

“In light of the BCCI’s notification of force majeure, we would highlight the obligation on the BCCI set out in clause 20.1(a) of the Host Agreement and that IBC (ICC Business Corporation) is entitled to terminate the agreement with immediate effect at any time from 18 May 2020 in accordance with clause 20.2,” ICC’s general counsel and company secretary Jonathan Hall wrote to the BCCI on behalf of the ICC, reported ToI.

“In turn, the ICC now says that given the host agreement (for the 2021 and 2023 events), the IBC is entitled to terminate the agreement, which means what they’re saying is that they’ll take away the 2021 and 2023 events from India if BCCI and the Indian government do not respond to the matters of tax exemption through a process recommended by them (ICC) and the deadline is over. What the ICC is essentially doing is taking on the Indian government,” say those in the know.

As a matter of fact, Hall further stated in the mail that, “IBC is not prepared to agree to the requested extension” which has miffed the BCCI further, who questioned the ICC to reveal the name of those directors, who took the objection for the extension request.  

“Otherwise what? The ICC will take the World Cup away from India? The 18-month deadline got over in April. But given the pandemic, we see no reason why the deadline cannot be extended by a couple of months. The IBC consists of directors from member boards of ICC. Which are these directors who are not prepared to agree to an extension? Is there a signed document? Share it with the BCCI”.

ICC’s board meeting will begin on May 26 through teleconferences and the BCCI can be expected to raise the matter in all seriousness. The interest of the broadcasters will play a part as well, considering Star Sports suffered a massive broadcasting loss in the 2019 Wolrd Cup, and their 55 % pay-out will come from the two World events scheduled in India. 

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