INTM489635 - Diverted Profits Tax: application of Diverted Profits Tax: legislation 바카라 사이트“ Finance Act 2015 바카라 사이트“ core provisions: consequences of section 80 or 81 applying - section 83 - cases where no taxable diverted profits arise
Section 83 applies where the actual provision condition is met (that is, both the material provision and the relevant alternative provision would have resulted in expenses of the same type and for the same purpose and also would not have resulted in relevant taxable income) and either there are no diverted profits or there are diverted profits but the relevant company makes full transfer pricing adjustments before the end of the review period. The DPT legislation provides an additional opportunity for a company charged to DPT to amend its company tax return during the first 12 months of the review period (section 101A Finance Act 2015). This is in addition to the period in which the company can amend its return under Para 15, Schedule 18, Finance Act 1998.
Where section 83 applies, no taxable diverted profits will arise to the relevant company for the accounting period.
This means that where the actual provision condition is met there will be no taxable diverted profits if the actual transactions have been correctly priced, or, despite their being incorrectly priced (as compared with the position at arm바카라 사이트™s length), the company has made transfer pricing adjustments, before the end of the review period, that put it in the same tax position as if arm바카라 사이트™s length pricing had been used.