Diverted Profits Tax

20th August, 2018

Diverted profits tax (DPT), popularly referred to as the ‘Google tax’ was introduced by FA2015 and followed widespread media criticism of sophisticated tax planning strategies implemented by large multinational groups. It is the government’s intention that DPT will deter and counteract activities that divert otherwise taxable profits from the UK.Whilst DPT is largely targeted at large groups, there are certain circumstances in which ‘small to medium sized enterprises’ (SMEs) may be caught with potential implications.

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