ICC asks BCCI to bear tax liability for global events in India

The ICC that usually gets tax exemption from member nations for conducting global events didn’t get any for the 2016 World T20 as Indian tax laws don’t allow such leeway.

ICC chairman Shashank Manohar has told BCCI to take care of tax liabilities if the ICC does not get exemptions.   -  PTI

The BCCI has been asked by ICC to bear tax liabilities to the tune of USD 21 million (Rs 150 crore) for conducting future global events like the 2021 World T20 and 2023 ODI World Cup in India. The ICC has apparently granted BCCI time till the completion of general elections.

The International Cricket Council gets tax exemption from member nations for conducting global events but it didn’t get any for the 2016 World T20 as Indian tax laws don’t allow any such leeway. Incidentally, non tax exemption was one of the major reasons why the Formula One race was pulled out of India.

The issue has persisted between the global body and its richest member board and also came up for discussion at the recent ICC quarterly meeting.

READ | Quarterly meet: ICC-BCCI deadlock on tax exemption issue likely to continue

It has been learnt that ICC chairman Shashank Manohar has told the BCCI that as per its rules, the Indian board will have to pay the tax liability in case it is not able to get tax exemption.

“Mr Manohar has categorically said that tax exemption is something BCCI needs to figure out,” a BCCI official told PTI on conditions of anonymity. “Since this is about tax laws and it can change with time, the BCCI thinks it’s prudent to wait till the general elections get over and take it from there,” he said.

Some in the BCCI are pondering the possibility of asking the various sponsors to share the tax burden, which will be beneficial to all parties.

“There is a clause in the contract, where the sponsors may have to carry the burden of tax in case the hosting nation doesn’t have tax exemption laws. So BCCI will be within their rights to ask the various sponsors to share the burden,” the official said.

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When CoA chief Vinod Rai was asked about the issue, he said:“Tax laws are complicated. I will only comment on the issue once I am aware of all the details. However, I don’t think it’s an issue that can’t be sorted out.”