The BBC has admitted that it paid lower taxes in India than it should have, following an investigation by the country's income tax department.
The BBC said it had "fully co-operated" with the investigation and had "accepted" the findings. The BBC's India office was searched by tax officials in March, amid a row over a BBC documentary critical of Indian Prime Minister Narendra Modi. The documentary, India: The Modi Question, alleged that Modi had failed to do enough to stop the 2002 Gujarat riots, in which more than 1,000 people, mostly Muslims, were killed. The BBC has denied the allegations. The income tax department said it had found that the BBC had not paid taxes on some of its income in India. The BBC said it had paid "all taxes due" and that the discrepancy was due to a "misunderstanding" of Indian tax law. The BBC has said it will pay the additional taxes that it owes.
The BBC's admission comes at a time when the broadcaster is facing increasing scrutiny over its finances. In March, the BBC Trust, which oversees the BBC, launched an inquiry into the broadcaster's commercial activities. The inquiry is looking into whether the BBC is "charging too much" for its products and services. The BBC has said that it is "committed to being transparent" about its finances and that it will "co-operate fully" with the inquiry.
CAclubindia
