Payments to cricketers under IT lens

Cricketers who played in IPL for last three years will be scrutinised by the Income Tax.

Cricketers who played in IPL for last three years will be scrutinised by the Income Tax.

The Enforcement Directorate is contemplating filing a case under anti-money laundering laws against unknown officials of IPL.

Official sources said IPL franchise teams had been asked to hand over details of payments made to cricketers of all the teams who have played in the three IPL editions so far.

The payments includes the money paid to the players for the match as well as for the post-match parties, the sources said.

The IT has also asked the IPL franchise teams to provide the details of money paid to the cheerleaders as well as commentators.

In a related development, the ED sources said preliminary investigations into the IPL saga were indicating that money had been allegedly been brought into the country through illegal means using the tax havens like Mauritius, Cooks Island and Cayman Islands.

The sources said the ED officials would be seeking details from the Income tax authorities before filing the PMLA case against unknown officials of the IPL.

The Income tax, meanwhile, has sought details of tax filed by the IPL in 2008-09 fiscal as well as assessment for the 2009-10 year.

The sources said that the Finance Ministry has been asked to provide the details of proposal submitted by the Rajasthan Royals before the Foreign Investment Promotional Board in 2008, which was rejected by the Government.

The IPL team of Rajasthan had sought foreign direct investment for its team without the cash inflow. It could have meant that the owners of the cricket team could be based outside India.

The FIPB has referred a fresh application from the Rajasthan Royals to Central Board of Direct Taxes for a detailed report. The application was at present being scrutinised by the security agencies.

The Enforcement Directorate has already registered a case against IPL under Foreign Exchange Management Act (FEMA) to inquire into unauthorised transfer of foreign funds.

The case, registered yesterday, is the first by ED against IPL after it received preliminary information that funds from abroad, without the permission of RBI, might have trickled in, they said.

As of now, the ED has registered a case against unknown persons and would make an inquiry into the aspect of transfer of foreign funds.

Leave a Reply

Your email address will not be published. Required fields are marked *