Multinational Companies: Taxation

(asked on 4th March 2015) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps he has taken to ensure that large multinational internet retailers comply with the diverted profits tax.


Answered by
David Gauke Portrait
David Gauke
This question was answered on 9th March 2015

The Diverted Profits Tax targets multinationals in any business sector which use a variety of contrived arrangements, to shift profits out of the UK.

The measure is targeted at specific abusive arrangements, and not at any particular companies or sectors.

Where multinational business are going to extraordinary lengths to pay little or no tax in the UK through the use of aggressive tax planning techniques, we will act to stop this.

As a matter of compliance, the legislation sets out the circumstances in which companies need to notify HMRC. When there is potentially a charge to Diverted Profits Tax for an accounting period, the company must notify HMRC within three months of the end of that accounting period.

A company may be liable for a penalty for failure to notify HMRC of a potential liability to the DPT, which is based on the potential lost revenue.

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