BBC ‘survey’: Amid a row that erupted following the Income Tax division raid on BBC, the tax authorities launched a press release on Friday, the place it claimed that the organisation indulged in earnings and revenue tax irregularities.
The raid which has been touted as a “survey” by the sleuths, stated that the earnings and profits proven by varied BBC group entities are not commensurate with the size of their operations in India.
Not working as per legislation of the land: IT
According to an official assertion on Friday, it claimed that the investigators discovered regardless of substantial consumption of content material in varied Indian languages (other than English), the earnings/profits proven by varied group entities are not commensurate with the size of operations in India.
Further, through the course of the ‘survey’, it claimed that the division gathered proof pertaining to the operation of the organisation which signifies that “tax has not been paid on certain remittances” which have not been disclosed as earnings in India by the international entities of the group.
Furthermore, the I-T division claims that the companies of seconded workers have been utilised for which reimbursement has been made by the Indian entity to the international entity involved. “Such remittance was also liable to be subject to withholding tax which has not been done,” in accordance with the assertion.
The ‘survey’ has additionally thrown up a number of discrepancies and inconsistencies with regard to Transfer Pricing documentation. Such discrepancies relate to the extent of related Function, Asset and Risk (FAR) evaluation, incorrect use of comparables that are relevant to find out the proper Arms Length Price (ALP) and insufficient income apportionment, amongst others, as per the Income Tax assertion.
IT dept discovered essential proof
The division claimed it unearthed essential proof, together with statements of workers, digital proof and paperwork which can be additional examined in due course. It is pertinent to state that statements of solely these workers have been recorded whose function was essential included these related to, primarily, finance, content material growth and different production-related capabilities.
“Even though the Department exercised due care to record statements of only key personnel, it was observed that dilatory tactics were employed including in the context of producing documents/agreements sought,” as per the assertion. The division claimed regardless of the survey operation, it was ensured that the organisation might facilitate common media/channel exercise.
Also Read: Income Tax division’s survey at BBC workplaces| What we all know thus far
