New Delhi, India – The Finance Ministry of India has accused
the British Broadcasting Corporation (BBC) of tax evasion. According to a
statement released on Friday, the broadcaster has not fully declared its income
and profits from its operations in India.
Indian tax authorities conducted a three-day search of the
BBC’s offices in New Delhi and Mumbai, which concluded on Thursday night. The
timing of the search has been questioned by critics of Prime Minister Narendra
Modi, as it came just weeks after the BBC aired a documentary critical of Modi
in the UK.
In a statement, the Central Board of Direct Taxes said that
the department had gathered several pieces of evidence pertaining to the
operation of the organisation, which indicated that tax had not been paid on
certain remittances that had not been disclosed as income in India by the
foreign entities of the group.
The statement also noted that the tax authorities had found
several discrepancies and inconsistencies and had gathered crucial evidence
from statements of employees, digital evidence, and documents. This evidence
will be examined more fully at a later stage.
The BBC has not yet responded to the accusations of tax
evasion. The broadcaster has faced criticism in India in recent months,
including from the ruling Bharatiya Janata Party (BJP), over its coverage of
the farmers’ protests and the handling of the COVID-19 pandemic in the country.
The Investigation into the BBC’s tax affairs is part of a
broader crackdown on tax evasion in India. The country has been taking steps to
clamp down on tax avoidance and evasion in recent years, and has been cracking
down on companies that fail to pay their fair share of taxes.
The Investigation into the BBC’s operations in India is
likely to continue, and the broadcaster may face penalties if it is found to
have evaded taxes.
Following the accusation of tax evasion by India’s Finance
Ministry against the British Broadcasting Corporation (BBC), the BBC has stated
that it will continue to cooperate with Indian authorities and hopes to resolve
the matter as soon as possible. There was no immediate comment from the
broadcaster.
According to unnamed officials cited by the Press Trust of
India news agency on Thursday, investigators collected financial data from
select BBC staffers and made copies of electronic and paper data from the news
organization. The investigation is said to be looking into issues related to
international taxation and transfer pricing of BBC subsidiary companies.
The search of the BBC offices by Indian tax authorities has
sparked criticism from opposition parties and international media watchdogs.
Mallikarjun Kharge, the leader of India’s main opposition Congress party,
described the search as an assault on freedom of the press under the government
of Prime Minister Narendra Modi.
Reporters Without Borders, an international media watchdog,
has denounced the government’s actions as attempts to clamp down on independent
media. The search of the BBC offices is part of a broader crackdown on tax
evasion in India, which has been ramping up its efforts to collect taxes from
foreign companies operating in the country
Indian tax authorities have accused the British Broadcasting
Corporation (BBC) of tax evasion in India. The Indian finance ministry accused
the BBC of not fully declaring its income and profits from its operations in
the country, which led to a three-day search of the broadcaster’s New Delhi and
Mumbai offices by Indian tax officials.
According to the Central Board of Direct Taxes, the
department gathered “crucial evidence” from statements of employees, digital
evidence, and documents, which indicated that tax had not been paid on certain
remittances that have not been disclosed as income in India by the foreign
entities of the group. The investigation of foreign taxation and transfer
pricing of BBC subsidiary firms was done through the search.
The BBC has not yet commented on the issue, but it said on
Thursday that it would continue to cooperate with Indian authorities and hoped
that the matter could be resolved as soon as possible.
The timing of the searches has been criticized by critics of
Indian Prime Minister Narendra Modi, who have questioned the motive behind the
move. The search comes weeks after the BBC aired a documentary in the UK that
was critical of Modi.
Mallikarjun Kharge, the leader of India’s main opposition
Congress party, described the search of the BBC offices as an assault on
freedom of the press under Modi’s government.


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