Can Payment Towards Live Broadcasts Be Treated As Royalty?

Can Payment Towards Live Broadcasts Be Treated As Royalty? An Analysis Of The Global Cricket Corporation PTE LTD Judgement

Pratha Khanna, Jindal Global Law School

Brief Background of the Companies and the relevant Agreements1:

1. Global Cricket Corporation (hereinafter referred to as “GCC”) is incorporated as a private company in Singapore, and holds a valid tax residency certificate issued by the Inland Revenue Authority of Singapore for the relevant assessment year and further, claimed benefit of the provisions of the Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion between India and Singapore (for Short “DTAA”) for the Assessment Years 2002-03 and 2003-04.

2. International Cricket Council (hereinafter referred to as “ICC”) & ICC Development (International) Ltd. (hereinafter referred to as “IDI”) is an international body governing Cricket with their principal office at Monaco authorized under IDI which grants hosting agreements.

3. World Sports Group Limited (hereinafter referred to as “WSG”) was given the worldwide media and sponsorship rights by IDI through a Master Rights Agreement [MRA].

4. Further The Novation Agreement (hereinafter referred to as “TNA”) was entered into by IDI, WSG, News Corporation, Sky Global Networks and GCC. Here, it is pertinent to note that both GCC and Sky Global Networks are a part of the News Corporation Group of Companies which is incorporated in South Australia.