I-T survey continues in BBC offices in India

Mukesh Ranjan

New Delhi, February 14

Income Tax (I-T) Department sleuths today conducted survey operations at the BBC’s offices in Delhi and Mumbai as part of their investigation into the alleged tax evasion, officials said.

The tax department’s action, incidentally, comes weeks after the broadcaster aired a two-part documentary, “India: The Modi Question”.

The officials said the survey was being carried out to investigate issues related to international taxation and transfer pricing of BBC subsidiary companies. The BBC was served notices in the past but stayed “defiant and non-compliant” and had significantly diverted its profits, they alleged.

The officials said the survey teams had visited the office premises of the BBC in Delhi and Mumbai to look at documents related to the business operations of the London-headquartered broadcaster and its Indian arms.

According to sources, I-T officials were verifying certain account documents in the finance department of the BBC.

The synchronised surprise action began at 11 am with Income Tax sleuths reaching the BBC offices in Delhi and in Mumbai. BBC staffers were asked to keep their phones at a particular spot inside the premises and cooperate, the officials said.

“According to I-T rules, transfer pricing generally refers to prices of transactions between associated enterprises which may take place under conditions differing from those taking place between independent enterprises,” the officials said, adding that it refers to the value attached to transfers of goods, services and technology between related entities.

It also refers to the value attached to transfers between unrelated parties that are controlled by a common entity, they said.

As part of the survey, the I-T Department only covers the business premises of a company and does not raid residences and other locations of its promoters or directors, the officials noted.

The Supreme Court last week dismissed a plea seeking to impose a complete ban on the BBC in India in the wake of the controversial documentary, terming the petition “entirely misconceived” and “absolutely meritless”.

On January 21, the government issued directions to block multiple YouTube videos and Twitter posts sharing links to the documentary.

The Editors Guild of India in a statement said it was “deeply concerned” about the Income Tax surveys and termed it a continuation of the trend of using government agencies to intimidate and harass media outlets critical of the ruling establishment.

It further said “great care and sensitivity” should be shown in all such investigations “so as to not undermine the rights of journalists and media organisations”.