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Taxing time for Indians

Melbourne: The gruelling tour of Australia is all set to get even more tough for the Indians as the entire squad will be taxed for playing in Australia this summer.

Cricket Australia (CA) has sent a Memorandum of Understanding (MoU) to the BCCI, which has sent the Indian Board into a spin.

According to a change in the tax laws since India’s last visit to Australia in 2003, entertainers and sportspersons working in the country are being taxed for the income they generate.

[BCCI secretary Niranjan Shah clarified that the players’ earnings were not taxable, says a Staff Reporter in Calcutta.

“The players are not earning in Australia. So there is no question of any tax being imposed by the Australian authorities on the match fee.

“Only the prize money earned by the players will be taxable. Every country has its own set of rules.

“Overseas players’ earnings from prize money is also taxable in India.”]

Indian cricketers would thus be taxed for the present 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.

Media manager MK Shridhar has confirmed that the BCCI is asking for an amendment in the law.

“The taxation issue is being handled in Mumbai. We are in touch with our tax consultants whose advice we would follow,” said Shridhar.

Shridhar said Cricket Australia (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 is learnt that the BCCI has resolved to bear the tax brunt on themselves and let cricketers have their full match fees in the working committee meeting held earlier this month.

Cricket Australia (CA) spokesman Peter Young said CA was helpless and the MoU for the tour was inescapable.

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