'Irregularities In Tax Payments': I-T Dept On Surveys At BBC Offices
"I-T teams unearthed crucial evidences by way of statement of employees, digital proof and documents," CBDT said
After the 60-hour survey operation by the IT Department at British broadcaster BBC’s Delhi, Mumbai offices ended on Thursday, the Income Tax Department of India on Friday stated that there were "irregularities detected on certain tax payments."
CBDT released a statement without mentioning the media organisation, stating that I-T teams discovered critical evidences in the form of employee statements, digital proof, and papers. "I-T teams unearthed crucial evidences by way of statement of employees, digital proof and documents," the Central Board of Direct Taxes (CBDT) said, PTI reported.
BBC survey: CBDT says I-T teams unearthed crucial evidences by way of statement of employees, digital proof and documents
— Press Trust of India (@PTI_News) February 17, 2023
Speaking about the irregularities, CBDT stated: "Income, profits shown by various group entities not commensurate with scale of operations in India. Several discrepancies and inconsistencies with regard to transfer pricing documentation found."
"Survey thrown up discrepancies with regard to Transfer Pricing documentation. Such discrepancies relate to level of relevant Function, Asset & Risk analysis, incorrect use of comparables applicable to determine correct Arms Length Price & inadequate revenue apportionmen," the CBDT spokesperson was quoted by ANI on its official Twitter handle.
Survey thrown up discrepancies with regard to Transfer Pricing documentation. Such discrepancies relate to level of relevant Function, Asset & Risk analysis, incorrect use of comparables applicable to determine correct Arms Length Price & inadequate revenue apportionment: CBDT
— ANI (@ANI) February 17, 2023
After the survey was conducted, BBC had issued an official statement claiming that it will continue to comply with authorities. “We will continue to cooperate with the authorities and hope matters are resolved as soon as possible," reads the official statement.
“The BBC is a trusted, independent media organisation and we stand by our colleagues and journalists who will continue to report without fear or favour,” the statement further stated.
The Income Tax department's marathon "surveys" at BBC's headquarters completed on Thursday, after authorities created an inventory of financial data from chosen personnel and gathered digital and paper data for over 58 hours. The operation, which began at 11:30 a.m. on Tuesday at the British Broadcasting Corporation (BBC) headquarters in Delhi and Mumbai, has concluded in Mumbai and would be completed in Delhi by tonight, according to sources late on Thursday.
According to officials, as part of the survey operation that lasted three days and 57-58 hours, tax authorities inventoried the available goods, recorded the statements of some personnel, and confiscated some papers.
According to them, the survey was conducted to evaluate concerns with foreign taxation and transfer pricing of BBC subsidiary firms.
Opposition parties have criticised the I-T department move against the London-headquartered public broadcaster, terming it "political vengeance".
(With Inputs From Agencies)
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