IT surveys in BBC office to probe “non-compliance with transfer pricing rules, diversion of profits”

The Income Tax department on Tuesday, February 14, conducted a survey at the BBC offices in Delhi as well as Mumbai in view of the British public broadcaster’s “deliberate non-compliance,” with the transfer of pricing rules and its vast profits.
Earlier on Tuesday’ morning, the officials of the Income Tax department arrived at the premises of BBC at the KG Marg in the national capital and Mumbai’s Kalina Santacruz for the survey.
According to a report by ANI, the sources revealed that the exercise conducted at the office’ of British broadcaster’s by the Tax officials is called ‘survey,” not raid or search as per the provision of the Income Tax Act.
The source furthermore added that these surveys are conducted routinely and are not to be confused in the nature of a search/raid.
To referring the case of BBC, the source revealed that there has been a persistent non-compliance with the above mentioned rules for years and in connection with it several notices have been issued to the BBC. However, the media outlet has been continuously defiant and non-compliant and has significantly diverted it’s profits.
The key focus of the survey was to look into the manipulation of prices for unauthorized benefits including tax advantages and as the company remained non-compliant persistently, making it a repeat offender.
Meanwhile, the sources from the UK government added that, “We are closely monitoring the reports of tax surveys conducted at the offices of BBC in India.” In another report, the media outlet has said that they are completely cooperating with the IT department which is conducting survey at their offices.

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