BBC surveyed for diversion of profits, tax manipulation: IT-dept sources

Sources said, the exercise conducted by the tax authorities, is called “survey” not search/raid as per the provisions of the Income Tax Act. Such surveys are routinely conducted and are not to be confused with the nature of a search/raid.

| Updated: 14 February, 2023 4:01 pm IST

BBC India's offices in Delhi and Mumbai have been 'surveyed' by the IT department.

The cash-rich TV broadcaster BBC, that declared a record income of of £5.33 billion ($6.4 billion) for the financial year -2021-22 was searched for alleged diversion of profits by India’s tax agencies.

BBC established under the royal charter in January 1927 with the mandate of “reflecting the United Kingdom, its culture and values to the world” entered pre-independent India as a mouthpiece of the UK government and the East India Company has consistently flouted transfer pricing rules and have deliberately diverted significant amount of the profits, said sources in the IT department.

The Income Tax Authorities on Tuesday conducted a survey on the British Broadcasting Corporation’s premises in Delhi, in view of its deliberate non-compliance with the Transfer Pricing Rules and its vast diversion of profits.

“The surveys were conducted for non-compliance under transfer pricing rules, persistent and deliberate violation of transfer pricing norms; and deliberately diverting significant amounts of profits,”said sources.

Sources also informed that the exercise conducted by the tax authorities, is called “survey” and not search/raid as per the provisions of the Income Tax Act. Such surveys are routinely conducted and are not to be confused with the nature of a search/raid.

“In the case of the BBC, there has been persistent non-compliance with tax laws for years, said sources. As a result of the same, several notices have been issued to the BBC. However, the BBC has been continuously defiant and non-compliant and has significantly diverted their profits,” sources said.

The key focus of these surveys is to look into manipulation of prices for unauthorised benefits, including tax advantages. These surveys have been undertaken due to BBC’s persistent non-compliance of the norms, making it a repeat offender, as per the sources.

BBC’s income is largely sourced from TV license fees collected from the public of UK.