‘BBC ignored IT notices; did not comply with Transfer Pricing Rules, diverted profits’: Sources

New Delhi: The Income Tax authorities Tuesday conducted a survey on BBC premises in India’s capital Delhi in view of the broadcaster’s “deliberate non-compliance with the Transfer Pricing Rules and its vast diversion of profits,” sources said.

An IT survey is not a raid or search since as per the provisions of the Income Tax Act such surveys are routinely conducted.

BBC has been continuously defiant

The IT survey on Tuesday comes in the wake of “non-compliance” with the rules mentioned above, as also after several notices were issued to the BBC. The BBC has been continuously defiant and non-compliant and has been significantly diverted their profits, sources said.

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Key focus of BBC IT Survey

The key focus of the IT survey at BBC premises in India is to look into “manipulation of prices for unauthorised benefits, including tax advantages”, sources added.

“These surveys have been undertaken due to BBC’s persistent non-compliance of the norms, making it a repeat offender,” sources said.

Charges against BBC

Allegedly, the BBC has been “non-compliant under transfer pricing rules”.
Sources also said that the BBC has been “persistent and deliberately violative of transfer pricing norms; and deliberately diverted significant amount of the profits and have not followed the arm’s length arrangement in the case of allocation of profit.”

According to reports, the surveys began around 11 am with IT officials reached the BBC offices in Delhi and Mumbai.

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BBC staffers were asked to keep their phones aside, PTI reported officials as saying.

Meanwhile, BBC said that it was fully cooperating with the IT department officials in the ‘survey’.

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