Australia tour could turn out to be too taxing for Indians

There is a taxing problem awaiting Indians on Australian soil. And none of it would be the doing of Ricky Ponting...

There is a taxing problem awaiting Indians on Australian soil. And none of it would be the doing of Ricky Ponting & Co. Australian tax authorities, through Cricket Australia (CA), have asked the Board of Control for Cricket in India (BCCI) to sign an Memorandum of Understanding (MoU) that requires players to pay tax on all income generat1d on Australian soil.

This is a new development, at least something that the Indians did not have to face when they last toured Down Under, in 2004, under the leadership of Sourav Ganguly. This change in tax laws has happened since, and has send the BCCI authorities in a tizzy.

Indian cricketers would thus be taxed for the current tour from their match-fee, which could be to the tune of nearly $ 1.5 million (approximately Rs 6 crore). An Indian cricketer will get around $ 6,200 and $ 4,000 for a Test and a one-dayer, respectively.

Indian team media manager MK Shridhar has confirmed that the BCCI is asking if an amendment in the law is possible, vis-à-vis the Indians. “The taxation issue is being handled in Mumbai. We are in touch with our tax consultants whose advice we will follow,” said Shridhar.

Shridhar said CA was extending all possible help and the two boards are working to find a solution to the problem. “It’s not that we want to avoid it, but we just want to make sure as it is applicable to the cricketers for the first time,” Shridhar said.

It seems the BCCI was aware of this new development, and that at its last working committee meeting last Sunday it has on principle resolved to bear the tax brunt itself and let cricketers have their full match fees.

“We do not want cricketers to suffer because of the laws in Australia. If we have to part with money and can’t avoid it, we would foot the tax from the Board’s coffers,” said a senior Board official.

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Cricket Australia spokesman Peter Young said CA was helpless and the MoU for the tour was inescapable. “The details of the MoU reflect Australia’s tax laws and that’s standard of the MOUs we do in Australia. When you are in Australia, the Australian tax law applies,” he said.

A few Indian players privately said they were not concerned as long as it was ensured that they receive their full match fee.

•Which income will the tax hit?

Cricketers will be taxed from their match-fee

•Total income is: Nearly $ 1.5 million (approximately Rs 6 crore)

• What is an Indian cricketer’s match fee?

$ 6,200 and $ 4,000 for a Test and a one-dayer, respectively