India’s Ministry of Finance has accused the BBC of tax evasion after failing to fully declare its income and profits from its operations in the country. Indian tax officials concluded his three-day raid on the British broadcaster’s offices in New Delhi and Mumbai on Thursday night. The Central Direct Tax Commission, without naming the BBC, said in its first public statement since the agency’s investigation was completed.
The investigation found that India had consumed a large amount of content in various languages (other than English). Nevertheless, the revenues/profits of various group companies are not commensurate with the scale of operations in India. Critics of Prime Minister Narendra Modi have questioned the timing of the searches, which came after India reacted angrily to a documentary by the British broadcaster which focused on Prime Minister Narendra Modi’s leadership as chief minister of the western state of Gujarat during riots in 2002.
A senior government official dismissed accusations that the tax collection was “vindictive” and said it was linked to transfer pricing rules and alleged diversion of profits. The Press Trust of India news agency said Thursday. Investigators said,” they collected financial data from select BBC employees and made copies of the press’s electronic and printed data.” This inquiry is being conducted to investigate international taxation and transfer pricing issues for BBC affiliates.
