14 February 2018 UK Tax Authority begins second round of enquiries on Diverted Profits Tax Figures released by the United Kingdom (UK) Tax Authority (HMRC) in September 2017 showed it raised £281m (approx. US$1388.5m) as a result of the UK Diverted Profits Tax (DPT) legislation in the tax year 2016/17, about half from 14 DPT charging notices. The balance was from corporation tax from transfer pricing (TP) adjustments or spontaneous "behavioural change" across the large business population triggered by the introduction of the DPT. HMRC's DPT activity has now moved on to a second phase. This is a twin track follow-through of charging notices already issued, with a view to collecting further corporation tax from TP adjustments or confirmation of the DPT already charged and paid, coupled with pursuit of businesses who did not notify potential DPT liability regarding 2015 through an extended Initial Risk Review (IRR) process. Document ID: 2018-0312 |
