NEW DELHI: UK foreign secretary James Cleverly raised the issue of tax searches at BBC offices during a meeting with his Indian counterpart S Jaishankar on Wednesday and was told all entities operating in the country have to comply with rules and regulations, people familiar with the matter said.
Cleverly, who is in India to attend a meeting of G20 foreign ministers, told Reuters he had raised the tax searches at BBC offices at his bilateral talks with Jaishankar. He didn’t give any details.
The people cited above said Cleverly had brought up the “BBC tax issue” with Jaishankar.
“He was firmly told that all entities operating in India must comply fully with relevant laws and regulations,” one of the people said.
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Tweets put out by both foreign ministers after their meeting made no mention of the BBC issue.
“Began the morning with a bilateral meeting with Foreign Secretary @JamesCleverly of the UK. Reviewed the progress in our relationship since our last discussion. Noted in particular the commencement of the Young Professional Scheme. Also exchanged views on the global situation as well as the G20 agenda,” Jaishankar tweeted.
Cleverly said in a tweet, “India and the UK stand united as friends and partners. We are working together for the benefit of both our great nations.”
The British government had earlier said it was closely monitoring the searches conducted in January by India’s tax authorities at BBC offices in New Delhi and Mumbai over three days. The British government had also defended the BBC and its editorial freedom in Parliament.
The searches were carried out after the Indian government was angered by a BBC documentary on the 2002 Gujarat riots that criticised the role of then chief minister of the state, Narendra Modi.
The Central Board of Direct Taxes (CBDT) said last month the Income Tax department’s survey of the BBC had revealed that income or profits shown by several of its entities “is not commensurate with the scale of operations in India”. The CBDT also said evidence had emerged to indicate that “the company has not paid taxes on certain remittances”.
CBDT said IT officials had found several discrepancies in the transfer pricing documentation of the BBC. “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,” the CBDT said in a statement.
During the operation, around 22 income tax officers stayed at BBC offices overnight, making copies of documents and questioning employees. CBDT said the survey operation didn’t hinder the broadcaster’s regular operations and statements of only crucial employees were recorded.
The government had dismissed the BBC documentary, “India: The Modi Question”, as propaganda and blocked its streaming and sharing on social media. The external affairs ministry the documentary was meant to push a “discredited narrative”, was biased, lacked objectivity and showed a “continuing colonial mindset”.
Jaishankar too was highly critical of the timing of the documentary and described it as a “hatchet job”.
