HMRC have announced the opening of a new Profit Diversion Compliance facility to allow large international groups using arrangements targeted by Diverted Profits Tax (DPT) to bring their UK tax affairs up to date.
In 2017/18 the DPT , which was introduced in 2015, and imposes a 25% tax charge on profits artificially diverted from the UK, raised £388m, which was over a third more than the previous year. Under the DPT companies must notify HMRC if they are potentially within its scope and do not meet conditions for exemption, or face tax-geared penalties.
The new facility is intended to encourage corporates with arrangements that might fall within the DPT to review their transfer pricing policies, change them if appropriate, and make a disclosure to HMRC with proposals to pay any additional tax, interest and penalties due.
Links to our guides:
BEPS & Diverted Profits Tax (for SME owners)
External links:
