NERA Experts Offer Guidance Through HMRC’s Diverted Profits Tax Legislation

17 April 2019
By Amanda Pletz, Dr. Emmanuel Llinares, Diana Kabir, and Bernardo Danesi

Following the 2018 Budget, revisions were made to the United Kingdom’s Diverted Profits Tax (DPT) legislation and, in January 2019, HMRC created a new facility dedicated to profit diversion compliance.

The revisions provide an important opportunity for taxpayers to re-evaluate whether they are fully comfortable with their transfer pricing (TP) policies and documentation. NERA’s global transfer pricing experts have substantial practical experience evaluating TP arrangements and can help assess potential TP risk areas for your business. We have written a helpful guide that provides:

• A summary of HMRC’s key message for taxpayers in relation to DPT;

• Details on the new Compliance Facility; and

• An outline of the benefits of using the Facility to avoid investigations into profit diversion.

For further information on NERA’s Global Transfer Pricing Practice or for questions about the issues examined in our response, please contact NERA Associate Director Amanda Pletz or Managing Director Emmanuel Llinares.