World Cup 2023: No Exemptions! BCCI to pay Rs 963 crores in TAX on behalf of ICC for 2023 ODI World Cup to Indian Government, CHECK out
World Cup 2023: BCCI will pay a whooping Rs 963 crores of tax on behalf of ICC for the 2023 ODI World…
World Cup 2023: BCCI will pay a whooping Rs 963 crores of tax on behalf of ICC for the 2023 ODI World Cup to the Indian Government. The ICC typically releases the World Cup schedules at least a year in advance, but this time it is holding off until the BCCI receives the required approvals from the Indian government. This covers one of the crucial issues which is obtaining a tax exemption for the tournament.
The BCCI is anticipated to inform the ICC shortly of the precise position of the Indian government with regard to the tax exemption issue.
Also Read: ICC World Cup 2023: Pakistan to PLAY in India, BCCI Assures Visa Clearance by Indian Government of Pakistan Team to ICC
When three men’s events—the 2016 T20 World Cup, the 2018 Champions Trophy (later changed to the 2021 T20 World Cup, which was moved to the UAE and Oman due to the COVID pandemic), and the 2023 ODI World Cup—were awarded to India in 2014, the BCCI and the ICC signed a host agreement that included the tax exemption.
According to the contract, the BCCI was “obligated” to assist the ICC (and all of its corporate partners) in obtaining tax exemptions.
GOI will take 20% TAX
The Indian tax authorities told the ICC last year that the broadcast proceeds from the 2023 World Cup will be subject to a 20% tax order (excluding of surcharges), as per ESPNCricinfo.
The BCCI noted that any taxes “incurred” by ICC will be “adjusted” against the Indian board’s profits from ICC’s central revenue pool in a memo sent to its members, and state associations.
The ICC’s expected broadcasting revenue from the 2023 World Cup was indicated in the memo by the BCCI as USD 533.29 million. It claimed that a tax order of 10.92% on that would have a “financial impact” on it of around UDS 58.23 million (the BCCI’s note put the amount as USD 52.23 million, which seems to be a typo given the percentages listed).
If the tax component were to be 21.84% as the Indian tax authorities like, that would more than quadruple to over USD 116.47 million (INR 9,62,67,69,615.00 crores).
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