ICC has warned the BCCI to deduct a part of Indian Cricket board’s annual revenue share in continuing tussle on tax exemption for events held in India. BCCI is reportedly gearing up to consult with an English law firm over the dispute.
The Shashnak Manohar-led International Cricket Council wants complete tax exemption for global events happening in India and is still waiting waiver for the 2016 World T20 held in the country.
According to the latest documentation of the July 6 Committee of Administrators (CoA) meeting here, the ICC wants to cover the tax burden for the 2016 event by slashing the BCCI annual share from the ICC revenue.
The legal team of BCCI has informed the CoA that the Board “ensured all efforts to make tax exemptions to ICC. Prior to that event (2016), these events have always received tax exemptions.”
The information available on BCCI’s website stated that ICC wants to cut down the annual revenue of BCCI and retrieve the amount.
It says, “For the 2016 event, tax authorities directed that 10 per cent of the amount payable by ICC’s broadcaster (Star Sports) to ICC under media rights agreements (MRA) should be withheld.
“The CoA has asked the BCCI legal team to contact an “English law firm” since the “agreement between BCCI and the ICC in relation to the hosting of the 2016 World T20 is governed by the English law.”
When contacted, a senior BCCI official said that if International Cricket Council has its way, the annual revenue of 405 million earmarked for the richest cricket board could be slashed by 40.5 million.
Source: News Agency