United Kingdom Diverted Profits Tax
11 February 2015
The new diverted profits tax (DPT) will allow HMRC to apply a 25% charge on profits that it estimates have been diverted from the UK to other jurisdictions from 1 April 2015. Multinationals should review their operating structures to assess the likely impact and how they can prepare for the new tax.
Draft legislation was published on 10 December 2014 by the UK Government setting out the new DPT, dubbed the ‘Google tax’ by the Press. The tax seeks to counter the use - by large multinational enterprises - of arrangements considered to divert profits from the UK and will apply from 1 April 2015 in two distinct situations...