India says 'discrepancies' found in tax records of 'international media company'

By Ahmed Adil

NEW DELHI (AA) – A day after tax authorities’ search ended at the British Broadcasting Corporation (BBC) offices in India, the Ministry of Finance on Friday said that Income Tax Department conducted a survey of a prominent international media company and found "discrepancies and inconsistencies” in tax records.

“The survey revealed that despite substantial consumption of content in various Indian languages (apart from English), the income/profits shown by various group entities is not commensurate with the scale of operations in India,” said a statement issued by the ministry without naming BBC.

“During the course of the survey, the department gathered several pieces of evidence pertaining to the operation of the organization which indicates that tax has not been paid on certain remittances which have not been disclosed as income in India by the foreign entities of the group."

Indian income tax authorities started searches at the BBC offices in New Delhi and Mumbai on Tuesday. The operation concluded on Thursday which the government had described as "surveys" to look for irregularities.

According to the ministry, the survey operation has resulted "in the unearthing of crucial evidence by way of statement of employees, digital evidence and documents which will be further examined in due course."

Late Thursday night, the BBC in a statement said that the tax authorities teams have left the BBC offices and it will continue to cooperate with the authorities and hope matters are resolved as soon as possible.

It also said that they "will continue to report without fear or favour."

"We are supporting staff – some of whom have faced lengthy questioning or been required to stay overnight – and their welfare is our priority.”

"Our output is back to normal and we remain committed to serving our audiences in India and beyond,” the statement added.

The survey at the BBC offices was carried out just weeks after the broadcaster aired a documentary on Prime Minister Narendra Modi in the United Kingdom on Jan. 17 and 24.

The action by the Indian tax authorities triggered severe criticism from opposition parties, media organizations, and international media watchdogs, condemning the government's action.

India: The Modi Question is a two-part documentary series about Modi's leadership as western Gujarat state chief minister during the 2002 riots that killed over 1,000 people, mostly Muslims.

Though the documentary was not released in India, the government blocked all content related to it on social media, calling it a propaganda piece designed to promote a particular discredited narrative.