Income Tax Department raids BBC: Alleges non-compliance with Transfer Pricing Rules

British Broadcasting Corporation (BBC) was found to be in “chronic non-compliance” with tax regulations, making it a “repeat offender,” according to the Income Tax Department on Tuesday. The I-T Department’s announcement came hours after tax authorities on Tuesday searched the BBC’s offices in New Delhi and Mumbai, weeks after the release of a film that criticised Prime Minister Narendra Modi’s involvement in the 2002 Gujarat riots.

“Today, the Income Authorities performed a survey on the BBC’s Delhi offices due to the BBC’s willful disregard for the transfer pricing regulations and its massive profit-diversion practises. It is important to highlight that, in accordance with the terms of the Income Tax Act, the foregoing activity carried out by the tax authorities is referred to as a “survey” rather than a “search” or “raid.” Such surveys are routinely carried out and should not be mistaken for a search or raid, “the IT Department stated.

“The BBC’s offices in New Delhi and Mumbai are currently visited by the Income Tax Authorities, and we are completely cooperating. This matter should be handled as quickly as possible, “in a statement, the BBC.

According to the tax department, “BBC has consistently broken the law for years.”

“In the case of the BBC, the aforementioned regulations have been consistently broken for years. Numerous notices have been sent to the BBC as a result of the same. However, the BBC has consistently acted in a rebellious and non-compliant manner, diverting a sizable portion of their income. These studies’ main objective is to investigate pricing manipulation for unauthorised benefits, including tax advantages. Due to BBC’s chronic non-compliance with the standards, which makes it a repeat offender, these surveys have been conducted “the division added.

The British Broadcasting Corporation (BBC) was accused by the Bharatiya Janata Party (BJP) on Tuesday of publishing “venomous” news about India and of collaborating with the Congress to further their own interests.

In response to the Congress’ criticism of the Income Tax (I-T) move, BJP national spokesperson Gaurav Bhatia said that the government body should be allowed to carry out its duties and emphasised that the “time of the action was not set by any government or outside entity.”

He attacked the public broadcaster with its headquarters in London, calling it the “most corrupt” organisation in the world and reminding the Congress that former Prime Minister Indira Gandhi had also outlawed the station.

A third accusation made by the BJP leader was that the BBC had a “tainted and black history of working with malice against India.” “The agendas of the BBC and the Congress go hand in hand.” The former prime minister and current leader of Congress, Indira Gandhi, put a ban on the BBC, he stated.

“BBC has been non-compliant under transfer pricing laws; persistent and deliberately violating transfer pricing norms; and deliberatly diverting a considerable amount of the earnings and have not followed the arm’s length arrangement in the event of allocation of profit,” the tax department claimed.

The government said, “As a result, the surveys have been carried out with a view to investigating BBC’s violation of the Transfer Pricing Rules and its diversion of earnings.”