INTM489991 | Diverted Profits Tax: imposing a charge – procedure and governance: interaction with other legislation

The General Anti-Abuse Rule (GAAR) applies to DPT. The GAAR should not be raised with a taxpayer or their advisors until Counter-Avoidance have been consulted and given their express approval.

The definition of tax advantage at CTA 2010 s1139 has been widened to include the avoidance or reduction of a charge to DPT. This means that various targeted anti-avoidance rules such as the loan relationship unallowable purpose rule at section 441 of CTA 2009 can apply in relation to DPT.