Income Tax dept carries out searches at BBC office in Delhi
New Delhi: In connection with potential tax evasion and anomalies, the Income Tax Department conducted a survey at the British Broadcasting Corporation (BBC) locations in Delhi and Mumbai on Tuesday, according to officials.
The BBC offices in Delhi and Mumbai were undergoing surveys, not raids, according to a senior member of the Central Board of Direct Taxes (CBDT).
It is pertinent to note that the above exercise conducted by the tax authorities, is called “survey” not search/raid as per the provisions of the Income Tax Act. Such surveys are routinely conducted and are not to be confused to be in the nature of a search/raid.”
The sources further said, “In the case of the BBC, there has been persistent non-compliance with the above mentioned rules for years. As a result of the same, several notices have been issued to the BBC. However, the BBC has been continuously defiant and non-compliant and has been significantly diverted their profits.”
The sources also pointed out key focus of these surveys is to look into manipulation of prices for unauthorised benefits, including tax advantages. These surveys, the sources said, have been undertaken due to BBC’s persistent non-compliance of the norms, making it a repeat offender.
Sources also said that the surveys have been conducted with a view to investigate BBC’s violation of the Transfer Pricing Rules and its diversion of profits.
Meanwhile, the UK-based BBC on Tuesday that it is “fully cooperating” with the Income Tax authorities who are at its offices in New Delhi and Mumbai and hoped that the situation will be resolved “as soon as possible”.
The British Broadcasting Corporation, the UK-headquartered public broadcaster, did not give further details of what has been described as “surveys” by the I-T department, which reportedly involved local BBC staff being prevented from entering the office premises and their mobile phones being shut down.
“The Income Tax Authorities are currently at the BBC offices in New Delhi and Mumbai and we are fully cooperating,” a BBC spokesperson said in a statement. “We hope to have this situation resolved as soon as possible,” the spokesperson said.