India might lose hosting rights for next year’s T20 World Cup as the BCCI failed to get the tax exempted for the tournament. According to reports, the Indian cricket board asked an extension of the deadline to be able to solve the issue.
What ICC has to say?
As per the reports the BCCI had to get tax exempted for the 2021 T20 World Cup. But it could not manage to do the same. The International Cricket Council had given a deadline till May 18 to the Indian board to sort the tax issue with the Indian government. But now the board asked for an extension of the deadline till June 30. So, now the ICC sent an email to the BCCI reminding that the showpiece tournament could be shifted from India for the same chaos.
Speaking to the ESPNcricinfo, the general counsel Jonathan Hall clarified, “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.”
Hall further reminded in a letter to the BCCI on April 29, “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.”
BCCI wants deadline extension
This is not the first time that the global cricket body faced an issue with the richest cricket board over the tax exemption. Earlier the Indian cricket board had failed to do the same for the 2016 edition as well and the ICC had to lose around $20-30 million.
If this time the BCCI cannot secure tax exemption, the ICC will lose around $100 million in case India hosts the 2021 T20 World Cup. The BCCI cited the lockdown as the reason for their inability. The BCCI told, “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.
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