If there is no tax exemption, BCCI will have to carry burden for global events

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The ICC has asked the Indian cricket board to assume a tax obligation in the amount of USD 21 million (Rs 150 crore) for holding future world events such as the 2020 World Cup T20 and the ODI World Cup 2023.

The representatives of BCCI have apparently requested time until the end of the general elections, which has been granted by the parent body.

The International Cricket Council obtains tax exemption from member nations for conducting global events, but did not obtain any for World T20 2016, since the tax laws of India do not allow any kind of freedom of action.

By the way, the non-exemption of taxes was one of the main reasons why the Formula One race was withdrawn from India.

The problem has persisted between the world body and its board of wealthier members and was also discussed at the recent quarterly meeting of the ICC.

It has been known that the president of ICC, Shashank Manohar, has told the BCCI that, according to its rules, the Indian board will have to pay the tax obligation in case it can not obtain the tax exemption.

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“Mr. Manohar has stated categorically that the tax exemption is something that the BCCI must resolve,” a BCCI official told PTI on condition of anonymity.

“Given that these are tax laws and can change over time, the BCCI considers it prudent to wait until the general elections come to an end and take them there,” he said.

There is a school of thought in the BCCI that will ask the different sponsors to share the tax burden, which will be beneficial for all parties.

“There is a clause in the contract, where the sponsors may have to bear the tax burden in case the host nation does not have tax exemption laws, therefore, the BCCI will have the right to ask the various sponsors to share the burden, “said the official.

When asked to the head of the CoA, Vinod Rai on the subject, said: “The tax laws are complicated, I will only comment on the subject once you are aware of all the details, but I do not think it is a problem that can not be solved. “