The International Cricket Council’s latest stance on giving hosting writes to India and other Full Members could snatch the 2021 T20 World Cup hosting rights from India. The Apex body have time and again expressed their reservations over the complex tax structure of Indian Government. And in the past few weeks, the Indian cricket board and the global governing council engaged have exchanged a number of e-mails on the issue.
The ICC seeks tax exemption from every member nations for conducting global events and but this Tax Exemptions has been the bone of contention for BCCI from a very long time. Due to the complex taxation laws in India, ICC didn’t get any tax exemption for the 2016 T20 World Cup as well for which ICC deducted the money from BCCI’s share of profit.
This time around, after being given the deadline first till 30th December 2019 and then 18th May 2020 to resolve the tax issue, the BCCI had notified the Apex Body of the prevailing COVID-19 situation due to which BCCI failed to elicit a response from Indian Government. Citing the reason of closed government offices for long, BCCI have requested for the extension of deadline till 30th June to secure the tax exemption.
But ICC general counsel is firm on its stance and has notified the BCCI that in the wake of ‘force majeure’ the governing council is forced to oblige the Host Agreement and IBC is entitled to terminate the hosting rights.
“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 was quoted as saying by espncricinfo.
“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.
“In the meantime, all of IBC’s rights are reserved in full including the right to challenge whether or not a valid force majeure exists.”
With ICC now taking a tough stance on the same, it puts India’s rights for hosting the 2023 50-over World Cup in danger. The BCCI has no such liberty of Tax Exemptions and the governing body’s e-mail making it clear that without guarantees any member will not be allowed to host any ICC event over the next eight-year cycle that runs from 2023 and 2031, India might lose hosting rights of a number of upcoming ICC tournaments like T20 World Cup 2021.