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Tax exemption issue for T20WC to be discussed in AGM

The Board of Control for Cricket (BCCI) will hold its 89th Annual General Meeting (AGM) on December 24 in Ahmedabad, India. The main points discussed in the meetings are going to be the introduction of two new IPL teams, cricket’s inclusion in the Olympics, and the T20 World Cup Tax Exemption issue. One of the main issues for the AGM would be the full-tax exemption for the upcoming T20 World Cup which is scheduled to be hosted in India next year in October and November.

The International Cricket Council (ICC) wants tax exemptions for the 2021 T20 World Cup or the money paid by the world body would be deducted from the Indian cricket board’s share of the revenue. The ICC is also threatening the Indian board by saying it might shift the marquee tournament to the Emirates if the BCCI doesn’t exempt tax from the Indian Government.

The council has given the Indian board a deadline till December 31 for full-tax exemption. “As per Clause 10.20 of the host agreement for the T20 World Cup, the BCCI is obligated to deliver to ICC a full tax exemption for all income arising out of this event in favour of ICC, its subsidiaries and associates and its Members at least 18 month prior to the start of the event.”

Without a full tax exemption, the ICC’s surplus payout to its Members will be reduced. In May this year, the game’s global body had agreed to extend the deadline for the BCCI till December 31 to do the needful. If the Indian board fails, then ICC might shift the tournament or cut the share of the revenue from BCCI’s earnings. The BCCI has already distributed agenda papers amongst its members and the problem will be reviewed during the AGM. 

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