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Indian authorities accuse BBC of tax evasion after surveys
The British broadcaster didn't fully declare its income and profits from its operations in the country, says Finance Ministry
An armed security person stands guard at the gate of a building housing BBC office in New Delhi, India, on Wednesday, February 15, 2023. — AP
India’s Finance Ministry accused the BBC of tax evasion on Friday, saying that it had not fully declared its income and profits from its operations in the country.
Indian tax authorities ended three days of surveys of the British broadcaster's New Delhi and Mumbai offices on Thursday night.
“The department gathered several evidences pertaining to the operation of the organisation which indicate that tax has not been paid on certain remittances which have not been disclosed as income in India by the foreign entities of the group,” the Central Board of Direct Taxes said in a statement.
It said they found “several discrepancies and inconsistencies“ and had gathered “crucial evidence” from statements of employees, digital evidence and documents which would be examined more fully later.
The statement also accused the BBC of not paying full taxes on the earnings of employees who came from abroad and worked in India for short durations.
The BBC said in a statement that it would “respond appropriately to any direct formal communication received from the Income Tax Department".
“We are supporting staff — some of whom have faced lengthy questioning or been required to stay overnight — and their welfare is our priority. Our output is back to normal and we remain committed to serving our audiences in India and beyond," it said.
The Press Trust of India news agency cited unidentified officials as saying on Thursday that investigators collected financial data from select BBC staffers and made copies of electronic and paper data from the news organisation.
It said the authorities were investigating issues related to international taxation and transfer pricing of BBC subsidiary companies.
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