IT Department says BBC must file revised tax returns, settling all outstanding dues
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New Delhi: The Income-Tax Department has taken concrete action against the British Broadcasting Company (BBC) for alleged tax evasion, backed by compelling material evidence. According to two officials familiar with the matter, who spoke on the condition of anonymity, the broadcaster has informally acknowledged the underreporting of income but has yet to follow the formal procedure required to rectify the situation.
The Income-Tax Department reportedly received an email from the BBC confessing to the underreported income, a practice tantamount to "tax evasion" and subject to penalties and recovery. However, a senior official from the Central Board of Direct Taxes (CBDT) emphasized that the email alone lacks legal validity. For the matter to be taken seriously, the BBC must file revised tax returns, settling all outstanding dues, penalties, and accrued interest, which amount to several crores.
A senior CBDT official stated that the UK government-funded broadcaster, BBC, has admitted through an email to CBDT that it underreported approximately ₹40 crores of income in its tax returns; however, the official emphasized that the email lacks legal validity, stressing the need for the BBC to submit a revised return for the confession to be duly acknowledged.
Addressing the issue, another official reiterated that the law treats all entities, including media companies and foreign entities, equally without any special dispensation. The official emphasized that the BBC must adhere to the prescribed procedure or face legal consequences. The Income-Tax Department intends to pursue the matter until it reaches a satisfactory resolution.
Earlier, the BBC alleged that the Income Tax Department's actions were politically motivated, following the broadcast of a contentious documentary on the Gujarat riots.
Earlier this year, in mid-February, Income-Tax teams conducted surveys at the BBC offices in New Delhi and Mumbai, as part of the investigation into alleged tax evasion. The BBC had previously stated its full cooperation with the authorities, expressing its desire to resolve the matter expeditiously.