BBC has said that it is ‘fully cooperating’ with the Indian tax authorities who yesterday conducted survey operations at the British broadcaster’s offices in New Delhi and Mumbai as part of an investigation into alleged tax evasion, officials said, while opposition Indian political leaders termed the move a witch-hunt by the government.
The action, which led to a sharp political debate with the ruling BJP accusing the BBC of “venomous reporting” and the opposition slamming the move, comes weeks after the broadcaster aired a two-part documentary, ‘India: The Modi Question’, a PTI report from New Delhi stated.
The survey is being carried out to investigate issues related to international taxation and transfer pricing of BBC subsidiary companies, officials said.
BBC had been served notices in the past but was “defiant and non-compliant” and had significantly diverted its profits, they alleged.
The department is looking at documents related to the business operations of the London-headquartered broadcaster and its Indian arms, they said.
“The Income Tax authorities are currently at the offices in New Delhi and Mumbai and we are fully cooperating. We hope to have this situation resolved as soon as possible,” the press office of the BBC said on Twitter.
The synchronised surprise action began at 11 am with Income Tax officials 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, officials said, according to the PTI report.
According to IT 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. 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, which are controlled by a common entity.
As news spread, curious onlookers and media crews were seen outside the BBC office at central Delhi’s Kasturba Gandhi Marg. In Mumbai, the office is in the upscale Santa Cruz area.
As part of a survey, the Income Tax department only covers the business premises of a company and does not raid residences and other locations of its promoters or directors.
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 said it was “deeply concerned” about the Income Tax surveys and termed it continuation of a trend of using government agencies to intimidate and harass media outlets critical of the ruling establishment.
In a statement, the Guild said great care and sensitivity should be shown in all such investigations so as to not undermine the rights of journalists and media organisations.
The BJP, in its reaction, accused the BBC of unleashing “venomous” reporting against India, and alleged that its propaganda and the Congress’ agenda go together.
BJP’s national spokesperson Gaurav Bhatia rejected the Congress’ criticism of the IT action and said the government agency should be allowed to do its job.
He reminded the Congress that former Prime Minister Indira Gandhi had also banned the broadcaster.
Congress general secretary Jairam Ramesh used a Hindi idiom to attack the government, saying “Vinash Kale, Vipreet Buddhi” (When doom approaches, a person’s intellect works against his interest).
The CPI(M) hit out at the Centre over IT “raids” and questioned if India remains the “mother of democracy”.
‘Fully Copperating’, Says BBC: The BBC said on Tuesday that it is “fully cooperating” with the Income Tax authorities who are at its offices in New Delhi and Mumbai and hoped that the situation will be resolved “as soon as possible”, a PTI report from London added.
The British Broadcasting Corporation, the UK-headquartered public broadcaster, did not give further details of what has been described as “surveys” by the I-T department, which reportedly involved local BBC staff being prevented from entering the office premises and their mobile phones being shut down.
“The Income Tax Authorities are currently at the BBC offices in New Delhi and Mumbai and we are fully cooperating,” a BBC spokesperson said in a statement.
“We hope to have this situation resolved as soon as possible,” the spokesperson said.
“The bias, lack of objectivity and continuing colonial mindset is blatantly visible,” the Ministry of External Affairs (MEA) said at the time it was aired in the UK last month.
The documentary also triggered coordinated Indian diaspora protests at BBC offices across different UK cities at the end of last month.
The UK government responded in the House of Commons to the protests by insisting the BBC as a media organisation was “independent in its outlet” and reiterating its commitment to enhancing ties with India.