HMRC’s latest figures show that the diverted profits tax (DPT) has raised a total of £5bn since its introduction in 2015. DPT investigations have yielded £480m in 2019/20 so far.
In a press release (bit.ly/2O5kvLK), HMRC says it has seen businesses change their behaviour, structures and policies as a result of the DPT. For this purpose, HMRC launched its profit diversion compliance facility in 2019, which it says has been used by around two thirds of the large businesses initially targeted.
The figure of £5bn since 2015 includes:
additional corporation tax of over £2.2bn from over 60 investigations;
almost £2bn in extra VAT from businesses restructuring their operations; and
£369m from DPT charging notices.
HMRC estimates the amount of tax under consideration as part of approximately 100 ongoing investigations to be £2.9bn as at March 2019. For these purposes ‘tax under consideration’ is an estimate of the maximum potential additional tax liability in each case before HMRC has carried out a full investigation.
HMRC’s latest figures show that the diverted profits tax (DPT) has raised a total of £5bn since its introduction in 2015. DPT investigations have yielded £480m in 2019/20 so far.
In a press release (bit.ly/2O5kvLK), HMRC says it has seen businesses change their behaviour, structures and policies as a result of the DPT. For this purpose, HMRC launched its profit diversion compliance facility in 2019, which it says has been used by around two thirds of the large businesses initially targeted.
The figure of £5bn since 2015 includes:
additional corporation tax of over £2.2bn from over 60 investigations;
almost £2bn in extra VAT from businesses restructuring their operations; and
£369m from DPT charging notices.
HMRC estimates the amount of tax under consideration as part of approximately 100 ongoing investigations to be £2.9bn as at March 2019. For these purposes ‘tax under consideration’ is an estimate of the maximum potential additional tax liability in each case before HMRC has carried out a full investigation.
