BBC ‘accepts’ underreporting Rs 40 crore income, paying lower taxes in India

Months after tax survey by the Indian income tax department, the British Broadcasting Company (BBC) has now “acknowledged” that it may have paid lower taxes in India than its liability.
Tax surveys were carried out in BBC offices in Delhi and Mumbai in February. The broadcasting company is yet to submit revised returns or make a written submission to the I-T department.
A report by Hindustan Times said that BBC has informally acknowledged that it has evaded tax in India. The company is yet to follow the formal procedure for the same, the report quoted two officials aware of the development requesting anonymity.
BBC confess to underreporting
As per the report, in an email to the tax department, BBC has apparently confessed to underreporting of the detected income which is equal to “tax evasion” for which the broadcaster will have to face recovery as well as penalty,
BBC must follow the formal route to comply by filing revised returns and clear all dues, pay penalty as well as interests, which mount to several crores, the report quoted one of the officials as saying.
BBC’s email to I-T department
The British broadcaster, funded by the UK government, in an email to Central Board of Direct Taxes (CBDT) has confessed that it had underreported some Rs 40 crore of income in its tax returns.
“The email has no legal sanctity. The BBC needs to file a revised return for it to be taken seriously,” the report quoted a senior CBDT official as saying.
What’s next for BBC?
The report quoted one of the officials saying that the law of the land is the same for everyone in the country and there is no special dispensation for either a media company or a foreign entity.
“BBC must act as per the stated procedure or face the law. The Department will continue to take action against it until the matter is taken to the logical conclusion,” the official added.
When the tax survey was carried out in BBC’s offices in India, the broadcasters tried to create an impression that the action was a vendetta by the Indian government after it aired a controversial documentary on the 2002 Gujarat riots.
“Now, they informally accept they were involved in deliberate tax evasion and the action was against their unscrupulous behaviour,” an official said.
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