Indian tax officials probe BBC offices for third day

Indian tax officials have been examining mobile phones and laptops used by some BBC editorial and administrative staff, two sources told Reuters as an inspection at the British broadcaster’s offices in New Delhi and Mumbai entered the third day.

According to witnesses, tax officials had remained in the BBC’s offices since Tuesday’s surprise inspection began, with some sleeping there.

Others said some employees were questioned late into the night about financial transactions.

“They (officials) asked some of us to open our laptops and hand in phones and then gave them back,” a source told Reuters on Thursday, adding that owners of the devices were asked for the access codes.

A second source gave a similar report.

The tax agency’s action came just weeks after the government reacted angrily to a BBC documentary that raised questions about Prime Minister Narendra Modi’s role during Gujarat’s deadly communal unrest in 2002, when the Hindu nationalist leader was the prime minister western state.

The government dismissed the documentary India: The Modi Question as propaganda and blocked its streaming and social media sharing.

The BBC has maintained its coverage investigating one of the worst outbreaks of religious violence in India in modern times.

At least 1,000 people, mostly Muslims, were killed in the bloodshed, although activists put the number at more than double.

The BBC has said it is “fully cooperating with the tax authorities” and an internal memo instructed staff to answer questions honestly and “not to delete or hide any information on any of your devices”.

The tax agency has not responded to requests for comment, although a government official denied the tax survey was “vindictive” and said it related to transfer pricing rules and alleged profit diversion.

Kanchan Gupta, a senior adviser at the Ministry for Information and Broadcasting, told the Times Now news channel that tax assessment notices have been served to the BBC in the past but they have not provided a “convincing response”.

In recent years, some international companies have come under income tax scanners due to transfer pricing rules, but several media organizations and rights groups have criticized the BBC’s ongoing search.

“We demand that this intimidation ends and journalists can do their jobs without fear or favor,” the Mumbai Press Club said in a statement.