2023 World Cup might slip out of India's hand over BCCI-ICC taxation concerns

[Adi_62945]

It is no brainer that the Board of Control for Cricket in India (BCCI) contributes a significant amount of wealth to the International Cricket Council (ICC) and both the bodies have shared a great bond with each other. However, ICC will now have to make a decision on hosting the 2023 World Cup in India with the tax related issues not resolved at the earliest.

Notably, the 2016 T20 World Cup was hosted in India only after global cricket governing body ICC had received an interim tax benefit from Indian tax authorities. ICC held a 10.3% surcharge from India’s revenue share at the time while BCCI is still fighting a legal battle over it. The global body had asked the BCCI to provide required tax solutions for the 2023 World Cup which looks unlikely at the moment given the huge tax amount that was cut down from the profit by ICC previously.

It has been learnt that ICC had already raised a tax bill of 21.84% from the broadcast revenues for the event which is around US$116m (a tax liability of close to Rs 900 crore). While BCCI requested for a tax exemption in 2016, government did not agree to it and it could be the same story this year. According to the News 18 sources, BCCI had already informed ICC that “nothing can be done” on this regard which means that the tournament could be taken elsewhere.

It’s BCCI’s money. If the ICC can’t settle this issue before the World Cup arrives, and end up deducting it from India’s revenue share from the ICC, even this will end up in a legal battle,” as per News 18.

Although the government is yet to rule out the exemptions this time, there has been no indications of any development on the issue. It is expected to be a huge talking point in the cricketing fraternity, if the World Cup is moved out of India given the high population and the fan craze in the country for the game.


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[cricketjoshila]

There will be no tax exemption by the looks of it.

GoI is holding the position that how can tax exemption be justified for a sport that makes billions.

But if the event is shifted because of this issue, expect the government to face massive backlash and rightly so. This is a stupid stance.

 

[Ashmal]

There will be no tax exemption by the looks of it.

GoI is holding the position that how can tax exemption be justified for a sport that makes billions.

But if the event is shifted because of this issue, expect the government to face massive backlash and rightly so. This is a stupid stance.

Don't think they'll shift it out because of this.

BCCI can always pay it out of their own pockets, as hosting the WC will bring big revenue for them

 

[gazza619]

Never understand why sports feels that it has the right to be exempt from tax.

 

[sweep_shot]

Never understand why sports feels that it has the right to be exempt from tax.

I agree.

Also, not sure why BCCI is reluctant to pay tax. It is not like they are broke or anything (like Sri Lanka board or West Indies board). They are the richest cricket board in the world.

 

[cricketjoshila]

I agree.

Also, not sure why BCCI is reluctant to pay tax. It is not like they are broke or anything (like Sri Lanka board or West Indies board). They are the richest cricket board in the world.

No host board pay the taxes. And this government is wrong in not making the event tax free.

Since ICC is going to have to pay taxes they have decided to deduct the money from bcci's share.

ICC with held $23.5 mn for the 2016 T20 WC

Now they have decided to withhold 116mn usd.

That's $140mn usd gone out of bcci's share of 410mn.

 

[Farabi]

I hope this doesn’t happen and India loses the right to host due to silly reason.
Indian fans must be excited to host the World Cup and it would really suck for them. Hopefully the issue is sorted out soon.

 

[Savak]

No host board pay the taxes. And this government is wrong in not making the event tax free.

Since ICC is going to have to pay taxes they have decided to deduct the money from bcci's share.

ICC with held $23.5 mn for the 2016 T20 WC

Now they have decided to withhold 116mn usd.

That's $140mn usd gone out of bcci's share of 410mn.

BCCI can afford to take the hit. Surely the BCCI will earn billions from hosting the ODI WC in India. But the BCCI loses out in the billions if the WC is moved out of India.

Its a simple choice if one does a cost benefit analysis of the two scenarios

 

[PakLFC]

They will just throw money at the ICC. All is good and well.

 

[Adi_62945]

And guess what pakistanis are on a moon after hearing this news. What a loser country and mindset we are!!

 

[Bhaag Viru Bhaag]

Move it to South Africa please.

 

[SpiritOf1903]

ICC baring Its dentures. Nah

 

[Savak]

Apparently this has not been resolved yet. 5 months left for the event and still we have not even seen an iteneray announcement for the WC yet.

 

[daytrader]

I hope this doesn’t happen and India loses the right to host due to silly reason.
Indian fans must be excited to host the World Cup and it would really suck for them. Hopefully the issue is sorted out soon.

What about us Pakistani fans who're looking forward to a chance of beating India in India! Hopefully the World Cup stays in India and Pakistan participates. Just wouldn't be the same when we end the streak anywhere else.

 

[daytrader]

There will be no tax exemption by the looks of it.

GoI is holding the position that how can tax exemption be justified for a sport that makes billions.

But if the event is shifted because of this issue, expect the government to face massive backlash and rightly so. This is a stupid stance.

Maybe billions in the IPL but this is a lot of money for the ICC. Also India would economically benefit from tourism, direct spending and jobs created.

 

[BDfanforever]

The broadcasting revenue is about $520 million per BCCI for the World Cup event. So, 20% tax is like $120 million. Why doesn't ICC wants to pay any taxes? What nonsense is this?

 

[Babeikh]

ICC needs to get over it. They can't expect to be exempt from tax.

 

[HitWicket]

ICC needs to get over it. They can't expect to be exempt from tax.

They can if that's what the BCCI agreed they would get. If not the tax will just the paid out of the BCCIs ICC distribution.

 

[Nikhil_cric]

There was a big issue in India back in 2011 when the then government ensured that the 2011 World Cup was tax exempt.

BCCI has proven to be an extremely unprofessional body that clearly can't make decisions in the best interests of Indian cricket.

 

[MP2011]

There was a big issue in India back in 2011 when the then government ensured that the 2011 World Cup was tax exempt.

BCCI has proven to be an extremely unprofessional body that clearly can't make decisions in the best interests of Indian cricket.

When your only qualification to be the BCCI bigwig is that your father is so influential and calls shots in every sphere of life, this is what you get as an administrator.

 

[Savak]

The broadcasting revenue is about $520 million per BCCI for the World Cup event. So, 20% tax is like $120 million. Why doesn't ICC wants to pay any taxes? What nonsense is this?

Because the Share to the ICC Member countries will decline as a result of this tax. ICC events and the participation agreements usually specify that the host country has to obtain tax exemption for the event. BCCI signed the participation agreement therefore any taxes will be a violation of the agreement.

 

[Bhaag Viru Bhaag]

Move it to South Africa please. That's the best place to host the World Cup. And India does well there.