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Rediff.com  » Sports » Lack of clarity in India's tax laws: ICC

Lack of clarity in India's tax laws: ICC

Source: PTI
July 18, 2004 19:55 IST
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India may have the most ardent cricket public and a bubbling source of revenue, but the country is in serious danger of losing its bid to host the 2006 Champions Trophy, and probably all ICC events in future, if it fails to amend its tax laws.

The International Cricket Council said on Sunday it has strong reservations about India's taxing of sporting events, and unless the government provides tax exemption to ICC events it stands to lose its future bids.

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"The 2004 Champions Trophy was supposed to be held in India but it was moved to England because there was lack of clarity in the tax position in India.

"The 2006 edition is likely to be held in India. But unless the tax positions are clear, the event may not be awarded to India," ICC president Ehsan Mani said in Delhi on Sunday.

Mani said Board of Control for Cricket in India president Jagmohan Dalmiya made a strong plea to the ICC to award the next Champions Trophy to India, and every third World Cup to Asia since there are four countries from the region on the ICC Executive Board.

"Cricket is not in a position to share 30 or 40 per cent of its revenue. It is a serious issue, and an important issue, for both the ICC and BCCI," Mani said.

Asked specifically if India is in danger of losing its bids to host ICC events in future if it does not amend its tax laws, Mani replied, "It is very possible.

"It is very disturbing that there are lot of uncertainties [in India's tax procedures].

"There are tax issues with regard to the 1996 World Cup [jointly hosted by India, Pakistan and Sri Lanka] that are yet to be resolved, which is very unsatisfactory.

"We are looking for [tax] exemptions for ICC events, like we get from other countries. For instance, we get total exemptions from the events held in the United Kingdom.

"We had special arrangements with the South African government for the 2003 World Cup and will be having similar arrangements with the West Indies for the 2007 event."

Mani and ICC Chief Executive Officer Malcolm Speed are on a two-day visit to Delhi to hold discussions with the BCCI on a series of bilateral issues.

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