ICC threatens BCCI over tax deduction compensation

The International Cricket Council (ICC) has threatened to take the 2021 Men’s T20 World Cup away from India after the Board of Control for Cricket in India (BCCI) failed to secure tax deduction compensation from the government of India for the tournament.

The ICC, through emails as reported by ESPNcricinfo, has ordered the BCCI to forward an unconditional confirmation by May 18 while the BCCI has asked for an extension. The ICC however has rejected the notion of an extension.

"In light of the BCCI's notification of force majeure, we would highlight the obligation on the BCCI… 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," Jonathan Hall, the ICC's general counsel, wrote to the BCCI on April 29.

"The BCCI has clearly had many years to arrange the tax solution… which is why the agreement asks for it to be provided ….no later than 18 (eighteen) months prior…. and why the BCCI was required to provide it by 31 December 2019. In such circumstances IBC is not prepared to agree to the requested extension to June 30, 2020 or 30 days after the lockdown is lifted whichever is later,” the email further stated.

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The BCCI had claimed that it was unable to seek the permission and consent of their government due to the ongoing Covid-19 pandemic.

"While BCCI has been making all efforts to get a 'tax solution' for the event, in view of the current situation, which is beyond the control of the BCCI, it is not possible for BCCI to obtain requisite permission/consent from the Government of India before April 17, 2020," the BCCI said. "In light of the above, the BCCI hereby requests IBC to grant an extension of time till June 30, 2020 or 30 days after the lockdown is lifted, whichever is later.

Back in 2018, the ICC had asked the BCCI to compensate for tax deductions during the 2016 World T20 in India. According to a report in Times of India, BCCI was asked to pay a sum of US $23 million to the ICC.

The report stated: “The official broadcasters of ICC tournaments, Star TV, had deducted the taxes from their payments to the ICC, but since the world governing body had to bear the cost, they now want BCCI to compensate for it.”