The Income Tax Department’s action against the British Broadcasting Company (BBC) for tax evasion was based on definitive material evidence, which the broadcaster informally acknowledges but is yet to go through a formal process for the same, two officials aware of the development said, and they requested anonymity.
In an email sent to the department, the BBC apparently admitted to understating the revenue found, which is as good as “tax evasion” and attracts both recovery and a fine. The BBC must take a formal route to comply by filing revised returns and paying all the fees, penalties and interest, which run into several million crowns, one of the officials cited above said.
According to a senior official, the British government-funded broadcaster sent an email to the CBDT admitting that it had underreported income of around ₹40 crore in its tax returns. “E-mail has no legal sanction. The BBC needs to file a revised return to be taken seriously,” said a senior CBDT official.
A second official said the laws of the land are the same for everyone in the country and there is no special exemption for a media company or a foreign entity. “The BBC must act according to that procedure or face the law.” The ministry will proceed against it until the matter is taken to its logical conclusion,” the official said.
Initially, the BBC tried to give the impression that the Income Tax Department’s move was revenge by the government after the London-based broadcaster aired a controversial documentary on the Gujarat riots. “They now informally admit that they were involved in willful tax evasion and the action was against their reckless behaviour,” he said.
In mid-February, teams from the Income Tax department at the BBC’s New Delhi and Mumbai offices were conducting a “probe” for alleged tax evasion. While the taxman investigated the tax evasion case, the BBC said it was “co-operating fully” with the authorities and hoped the situation would be resolved as soon as possible.
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