BCCI set to lose $58-116m if Indian government denies ICC tax waiver

The BCCI stands to lose between US$58-116 million from its share of the ICC’s central income pool on account of the tax imposed by the Indian government on the worldwide cricket physique for internet hosting the 2023 Men’s ODI World Cup in India. The marquee occasion is scheduled to be performed in India in October-November subsequent 12 months.

“It is to be noted that any tax cost incurred by the ICC for the 2023 event in India will be adjusted with the BCCI’s share of revenue from the ICC,” the BCCI stated on Thursday in an replace despatched to its state associations. In the two-page doc, seen by ESPNcricinfo, the BCCI outlined the estimated monetary hit it’s doubtless to incur within the absence of the ICC securing a full tax exemption from the Indian government for staging the match in India, the primary males’s world cricket occasion within the nation for the reason that 2016 T20 World Cup.

The tax exemption has been a part of the host’s settlement the BCCI signed with the ICC in 2014, when three males’s occasions have been awarded to India: the 2016 World Cup, the 2018 Champions Trophy (later modified to 2021 T20 World Cup, which was moved to the UAE and Oman) and the 2023 World Cup. As per the settlement, the BCCI was “obligated” to assist the ICC (and all its industrial companions concerned within the match) safe the tax waiver.

The BCCI has challenged the ICC on that on the world physique’s disputes tribunal. Even because it awaits a ultimate choice from the tribunal, the BCCI has stated it had opened discussions with India’s finance ministry to “deliver a tax exemption or a tax solution” for the 2023 World Cup.

The BCCI was initially meant to safe such an exemption 18 months earlier than the occasion. It stated that it had requested ICC to lengthen the deadline to May 31 this 12 months from April, which was the unique timeline.

“At the start of this financial year, the BCCI had advised the ICC that in line with the tax order for the 2016 event, it was expected that a 10% (excluding surcharges) tax order could be obtained as an interim measure for the 2023 event within the required timeframe,” the BCCI stated in its replace. “The ICC has now received a 20% (excluding surcharges) tax order for its broadcast revenue for the 2023 event from the tax authorities in India.”

In the notice the BCCI listed the ICC’s broadcasting revenue from subsequent 12 months’s World Cup in India at an estimated $533.29 million. The BCCI stated the “financial impact” it might undergo for a ten.92% tax order on that will be round $58.23 million (the BCCI’s notice listed the determine as $52.23 million, which seems to be an error given the chances listed), which might greater than double to roughly $116.47 million if the tax element have been to be 21.84%, as desired by the Indian government.

The BCCI stated it remained “hopeful” of an answer as it’s participating on the “highest level” within the Indian government. “The BCCI is currently working with the Ministry of Finance, Government of India and have represented against this 20% (excluding surcharges) tax order at the very highest level and are hopeful that a 10% (excluding surcharges) tax order would be forthcoming shortly.”

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