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  5. ICC threatens to take away India's hosting rights for 2021 WT20 as BCCI fails to secure tax exemption

ICC threatens to take away India's hosting rights for 2021 WT20 as BCCI fails to secure tax exemption

BCCI was given May 18 as the deadline by ICC to solve the tax issue with the Indian government, but instead the board asked the deadline to be extended until the end of next month. 

India TV Sports Desk Written by: India TV Sports Desk
New Delhi Published on: May 27, 2020 9:56 IST
BCCI president Sourav Ganguly
Image Source : AP

BCCI president Sourav Ganguly

The International Cricket Council has threatened to snatch India's hosting rights for the 2021 T20 World Cup after BCCI failed to secure tax exemption for the tournament. 

BCCI was given May 18 as the deadline by ICC to solve the tax issue with the Indian government, but instead the board asked the deadline to be extended until the end of next month. 

"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 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," Hall wrote in a letter to the BCCI on April 29.

Earlier during the 2016 World T20 which was the last ICC event held in India, there was a similar issue between the two regarding the tax exemption which resulted in the governing body losing around $20-30 million. But this time around, the losses could go up to $100 million. 

BCCI has urged for an extension of the deadline citing the ongoing nationwide lockdown owing to coronavirus for which they have failed to approach the government. 

"While BCCI has been making all efforts to get a 'tax solution' for the event, in view of the current situation, which is beyond the control of the BCCI, it is not possible for BCCI to obtain requisite permission/consent from the Government of India before April 17, 2020. In light of the above, the BCCI hereby requests IBC to grant an extension of time till June 30, 2020 or 30 days after the lockdown is lifted, whichever is later.

"For the avoidance of doubt, this letter constitutes a notice of Force Majeure under Host Agreement," the BCCI told the ICC.