Diverted profits tax

UK tax - anti-avoidance.

(DPT).

A UK tax designed to deter and correct for corporate tax avoidance.

The DPT applies to large multinational enterprises with business activities in the UK who enter into ‘contrived’ arrangements to divert profits from the UK by avoiding a UK taxable permanent establishment and/or by other ‘contrived’ arrangements between connected entities.

See also

• Base erosion and profit shifting
• Business in Europe: Framework for Income Taxation
• Corporation Tax
• Double taxation
• Financial Transaction Tax
• Permanent establishment
• Tax avoidance
• Transfer pricing

Other links

• Action Plan on Base Erosion and Profit Shifting, OECD Publishing, OECD 2013