India face hefty tax bill

A change to Australia's tax laws could mean India's cricketers are forced to pay more than AU$1.5 million (US$1.2 million) in taxes during their Test and one-day tour. The players have not been charged on previous tours but a change in the laws since July 2004 requires all sportspeople and entertainers who work in Australia to pay tax.

MV Sridhar, the team's media manager, told the Herald Sun the BCCI was exploring whether the laws would apply. "We are taking the position of what our own tax consultants at the BCCI say," Sridhar said.

"Cricket Australia is helping and they will work together and come back to us with a solution. Then I am not very sure if the taxes will still apply. It's not that we want to avoid it, but we just want to make sure it is applicable to our cricketers for the first time."

"It's not that the players would have to pay anything out from their pocket. As of now, they would receive deducted match fees and there is a double taxation treaty also between India and Australia," MP Pandove, the BCCI joint secretary, told PTI. The treaty means the players will not be taxed for the second time when they return home.

There were also reports that India's players only paid tax on their sponsorships in India, but the team manager Chetan Chauhan said that was not the case. "Whatever the Indian players are getting, they are not getting any exemption," Chauhan said.

"They are paying tax like any normal individual in India, and they are in the highest tax bracket. The players in no way are holding back paying tax." The Herald Sun reported that the new law could mean the players will face taxes of more than $500,000 for the four-Test series and more than $1 million for the limited-overs games.