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In Vitol Aviation UK Limited & Ors v HMRC [2021] TC08287, the First Tier Tribunal (FTT) found that HMRC had sufficient information on the applicants' transfer pricing model to issue closure notices and that an ongoing enquiry into Diverted Profits Tax (DPT) was not reasonable grounds for refusing to do so.

The FTT found, in relation to the first grounds for refusal, that:

The FTT held, that on that basis, refusal to issue closure notices was unjustified.

The FTT found, in relation to the second grounds for refusal, that:

The FTT held, that on that basis, refusal to issue closure notices was unjustified. The FTT ordered the issue of closure notices within 30 days in respect of each of the enquiries to which the application related.

Useful guides on this topic

Diverted Profits Tax
Large multinational enterprises (MNEs) that use arrangements between connected parties to divert profits away from the UK and avoid UK tax, will be subject to the Diverted Profits Tax (DPT). Who does it apply to? What are the rules?

BEPS & Diverted Profits Tax (for SME Owners)
What is BEPS? What is Diverted Profits Tax? Will either of these affect me or my SME clients?

Permanent establishment & residence
What are the rules for determining a company's country of residence? What is central management and control? When does a company create a permanent establishment in another country?

Closure notices
When does HMRC issue a Closure Notice? Can a taxpayer demand one? Are there appeal rights? 

External link

Vitol Aviation UK Limited & Ors v HMRC [2021] TC08287


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