Commentary

D2.725 Notification

Corporate tax
Corporate tax | Commentary

D2.725 Notification

Corporate tax | Commentary

Diverted profits tax administration

D2.725 Notification

A company within the charge to the diverted profits tax must notify HMRC within three months of the end of the accounting period (six months for periods ending on or before 31 March 2016)1. A tax geared penalty (calculated by reference to the potential lost revenue) can be applied if a company does not so notify2. In cases where a company is liable to both a corporation tax inaccuracy penalty and a DPT failure to notify penalty based on the same profits, HMRC will calculate the penalty liability based on the larger of the two penalties based on the potential lost revenue which arises from the overlapping profits3. (See A4.567B for details of the potential lost revenue penalties regime.) There is, however, no duty to self-assess. The tax is imposed by HMRC issuing a charging notice to the company4. Before

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