Indian Income Tax (I-T) Department officials carried out a surprise survey at the offices of the British Broadcasting Corporation (BBC) in Delhi and Mumbai as part of their investigation into alleged tax evasion. This move came weeks after the broadcaster aired a controversial two-part documentary called “India: The Modi Question”. The officials were investigating issues related to international taxation and transfer pricing of BBC subsidiary companies, having previously served notices on the corporation. They allege that the BBC has been non-compliant and defiant and has significantly diverted its profits.
The BBC offices in Delhi and Mumbai were visited by the survey teams who were interested in looking at the documents related to the business operations of the London-headquartered broadcaster and its Indian subsidiaries. I-T officials verified certain account documents in the BBC’s finance department. The I-T Department described transfer pricing as referring to prices of transactions between associated enterprises which may take place under conditions differing from those taking place between independent enterprises. It refers to the value attached to transfers of goods, services, and technology between related entities or between unrelated parties that are controlled by a common entity.
The I-T Department carried out the survey at the business premises of the company and did not raid residences or other locations of its promoters or directors. The survey began simultaneously at 11 am with the I-T officials asking BBC staffers to place their phones in a designated area and to cooperate with them.
Last week, the Supreme Court dismissed a petition seeking a complete ban on the BBC in India following the airing of the controversial documentary. The government had previously directed that multiple YouTube videos and Twitter posts sharing links to the documentary be blocked.
The Editors Guild of India expressed deep concern over the I-T surveys, describing them as part of a trend to intimidate and harass media outlets critical of the ruling establishment, urging the investigators to show great care and sensitivity in all such investigations, so as to not undermine the rights of journalists and media organisations.
(Inputs from Tribune)
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