ICC threatens to shift 2021 T20 World Cup from India becouse of tax issues
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| Sourav Ganguly has been part of the correspondence with the ICC over the tax issue- Cricketix |
In several emails, the International Cricket Council noted that the BCCI had failed to secure a tax exemption for the tournament from the Indian government.
So the International Cricket Council will withdraw the hosting rights of the 2021 Men's World Cup from India.
The ICC issued the threat to the BCCI at a time when Shashank Manohar has been reportedly in charge of international cricket for the past few months. ICC loses 20-30 million dollar in 2016 T20 World Cup in India due to non-concession by Indian government. It always a thorn in BCCI's flesh.
According to a report in ESPNCricinfo, BCCI has called ICC's threat an act of 'brinkmanship.' because consistent with the contract signed between ICC and broadcasters STAR India, there should be a minimum of two ICC events in India within the eight-year cycle ending 2023. India is additionally scheduled to host the 2023 Men's 50-over World Cup . If there are not any tax waivers, ICC could suffer a 100 million dollarscricket.
India is currently the largest market in world cricket. Large of the ICC ruling comes from the worldwide broadcast of the game of cricket. Star has reportedly paid 1.98 billion dollars (approximately 12,000 crores) to get its rights till 2023.
For the 2021 World T20, ICC had sought an "unconditional confirmation" by May 18, 2020 on the tax exemption. But BCCI asked for an extension a minimum of till June 30. The BCCI had invoked the act of God clause (unforeseeable circumstances that prevent someone from fulfilling a contract) because of the coronavirus pandemic, but ICC wasn't interested.
Jonathan Hall, ICC General Counsel, wrote to the BCCI on April 29 that the ICC Business Corporation has the right to terminate the contract at any time with immediate effect.
In the email, Hall wrote, "The BCCI has clearly had many years to rearrange 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 supply it by 31 December 2019. In such circumstances IBC isn't prepared to comply with the requested extension to June 30, 2020 or 30 days after the lockdown is lifted whichever is later."
The ICC indicated to the BCCI that the original deadline for the settlement was 31 December 2019 but the BCCI had exceeded that deadline but could not resolve it. The deadline was set up to April 17 2020.On April 13, the BCCI told Jonathan Hall that the deadline could not be met because the Indian government did not classify sports events as "essential services" due to the covid-19 lockdown.
In recent times, the BCCI and the ICC have rarely been on the same path. Due to the lockdown, the BCCI is opening the door to a possibility for its money spinner IPL.
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