INTM489978 | Diverted Profits Tax: imposing a charge – procedure and governance: identifying potential Diverted Profits Tax cases

The majority of potential DPT cases will notify their liability to DPT to the DPT Unit or be identified during the risk assessment process. If a case worker or CCM believes that a company who they deal with is potentially liable to DPT they should inform the DPT Unit. To ensure that time limits for issuing preliminary notices are not missed this action should be treated as urgent.

Guidance on customer engagement is in INTM489830 but in essence case workers and CCMs should not raise DPT issues with their customers until they have consulted with an LB International Tax Specialist or an MSB Diverted Profits Technical Co-ordinator and received guidance on how to proceed. The DPT legislation provides a framework for working DPT cases that is outside of the normal CTSA enquiry procedure. Notices must not be sent without the approval of the designated HMRC officer.

It is important that the time limits and other statutory requirements are strictly adhered to by everyone working a DPT case.