Taxmen seize phones, laptops scanned as I-T survey continues at BBC Delhi, Mumbai offices

Income Tax officials are carrying out a survey at the BBC’s Delhi and Mumbai offices and have seized phones of employees.

The UK government said it is “closely monitoring” the enquiries against the broadcaster as 19 hours on, the survey is still ongoing.

The survey operations began at around 11 am yesterday at the BBC’s offices in Delhi, Mumbai and two other locations as part of an investigation into alleged tax evasion.

WHY THE SURVEY?

The Income Tax department said the survey was being carried out to investigate issues related to international taxation and transfer pricing of BBC subsidiary companies.

It also alleged that the broadcaster was served with notices in the past, but was “defiant and non-compliant” and had significantly diverted its profits.

I-T officials are looking at documents related to the business operations of the company and those related to its Indian arm. Tax officials insisted that this was a survey, not a search, and that the phones would be returned.

WHAT HAPPENED DURING SURVEY?

The survey began at the BBC India office at around 11 am on Tuesday. Income-Tax officials took all the electronic equipment on the premises into their custody and checked the mobile phones of the employees.

The mobile phones of the employees working at the Delhi office were seized and they were asked to go home. Those working on the afternoon shift were asked to work from home.

The IT officials searched for four keywords on the systems including shell company, fund transfer and foreign transfer, sources told India Today. Many employees are present at the BBC India office as the survey continues.

UK MONITORING SITUATION

While there has been no official statement related to the action, British government sources said they are “closely monitoring” reports of tax surveys conducted at the offices of the BBC in India.

JOURNALISM CONTINUES AS NORMAL: BBC

The BBC said it is fully cooperating with tax authorities.

“The Income Tax authorities are currently at 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.

“We are supporting our staff during this time and continue to hope to have this situation resolved as soon as possible. Our output and journalism continues as normal and we are committed to serving our audiences in India,” the BBC said in a statement.

But, the Editors Guild of India said it was “deeply concerned” about the “searches” at BBC offices and said it was a continuation of a “trend” of using government agencies to “intimidate and harass” media outlets who are critical of the government.

US ON SURVEY AT BBC INDIA OFFICES

The United States said it is aware of the survey operation conducted by the Indian tax authorities at the BBC office in Delhi but is not in a position to offer its judgement.

“We are aware of the search of the BBC offices in Delhi by Indian tax authorities. I would need to refer you to Indian authorities for the details of this search,” State Department Spokesperson Ned Price said.

When asked if this action went against some of the spirit or value of democracy, Price said, “I couldn’t say. We’re aware of the facts of these searches, but I’m just not in a position to offer a judgement.”

OPPOSITION QUESTIONS TIMING, BJP REACTS

The survey at BBC India office comes weeks after the UK-headquartered public broadcaster aired a two-part documentary in the UK, India: The Modi Question, referencing Prime Minister Narendra Modi and the 2002 Gujarat riots.

“Here we are asking for a Joint Parliamentary Committee (JPC) probe into the Adani-Hindenburg row, and there the government is hounding BBC. Vinash Kaale Viprit Buddhi (when one is doomed, one makes wrong decisions),” said Congress leader Jairam Ramesh.

Trinamool Congress MP Mahua Moitra said in a tweet, “Reports of Income Tax raid at BBC’s Delhi office. Wow, really? How unexpected.”

The ruling BJP accused the BBC of “venomous, shallow and agenda-driven reporting” and said the Income Tax department should be allowed to do its job.