BBC accused of 'behaving like Google or Amazon' by using multimillion-pound tax break scheme to increase its income Chairman of public accounts committee said BBC was behaving improperly Margaret Hodge said it was wrong for BBC to set up artificial structure Grafton House Productions and Comedy Productions set up for tax breaks At least £530,000 has been reclaimed so far this year from two dramas The BBC does not pay corporation tax, as it is non-profit-making The BBC has been accused of behaving like tax dodgers 'Google, Starbucks and Amazon' by using a multimillion-pound tax break scheme to increase its income. More than £530,000 has been reclaimed so far this year from two BBC dramas which have not yet been broadcast, one featuring Katie Leung, who played Cho Chang in Harry Potter. Margaret Hodge, chairman of the Commons public accounts committee, accused the BBC of behaving improperly and said it was wrong to set up an 'artificial structure'. The corporation set up two limited companies after George Osborne offered tax breaks to attract high end TV productions, dubbed the Downton Abbey Tax. The BBC has been accused of behaving like tax dodgers 'Google, Starbucks and Amazon' by using a multimillion-pound tax break scheme to increase its income Grafton House Productions and Comedy Productions were established in order to secure a rebate of up to 20 per cent on high-profile shows. 'It is as wrong for the BBC to deliberately set up an artificial structure to get taxpayers' money as it is for Google, Starbucks and Amazon, and they should stop it,' said Ms Hodge. I believe in the publicly funded service but they have got to behave properly. The BBC said the government is aware of this approach and has voiced no objections. But Hodge's attack is likely to embarrass Lord Hall, the director-general, who has attempted to clampdown on the internal BBC gravy train. The BBC does not pay corporation tax, as it is non-profit-making. Grafton House has already successfully reclaimed £530,133 for eight-part series The Interceptor and One Child, featuring Katie Leung, who played the Cho Chang in Harry Potter. Osborne announced in his 2012 budget that the cuts in corporation tax would apply to high-cost dramas, comedies and animations made in Britain. Margaret Hodge, chairman of the Commons public accounts committee, accused the BBC of behaving improperly by setting up an artificial structure The creative industry tax reliefs work by increasing the amount of allowable expenditure, so when the company makes a loss, it is able to 'surrender' the loss. From April to December last year the high-end TV tax relief supported more than £233 million of investment in high-end UK-produced television. Osborne said programmes aired on the BBC's networks could be eligible if they were made by independent producers or the corporation's commercial arm, BBC Worldwide. But the BBC could not claim the money for shows produced in-house for public-service channels, because this would breach European rules on state aid. The European Commission's letter to Hague said the scheme giving tax relief to drama had a total budget of £205million for the five-year period to April 2018, while a further £60million was available for animations. The BBC said: 'The BBC is committed to investing as much money as possible into the shows audiences love and by applying for tax credits, we can invest even more money into our programmes. This in turn delivers wider economic and cultural benefits by ensuring productions are shot in the UK rather than abroad. It also allows the BBC to compete on an equal footing with independent productions, including those commissioned by the BBC, that use the tax credit. The UK tax credits are available to all productions which satisfy the clear, objective criteria set out in the relevant legislation. Having taken the appropriate legal, tax and regulatory advice, the BBC considers that it is best able to deliver the benefits associated with the UK tax credit via commercial subsidiaries. The government is aware of this approach and has voiced no objection. George Osborne offered tax breaks to attract high end TV productions, dubbed the Downton Abbey Tax, to build on the global success of the ITV period drama. From April to December last year the high-end TV tax relief supported more than £233 million of investment in high-end UK-produced TV between April and December 2013. Osborne said BBC's networks could be eligible if they were made by independent producers or the corporation's commercial arm. So the BBC set up Grafton House Productions and Comedy Productions to secure a rebate of up to 20 per cent on high-profile shows. It works by increasing the amount of allowable expenditure, so when the company makes a loss, it is able to 'surrender' the loss.