INTM489570 - Diverted Profits Tax: introduction and overview: process and procedure

As a tax in its own right, not corporation tax, DPT has its own rules for notification, assessment and payment. DPT is not self-assessed but companies are required to notify HMRC within 3 months of the end of an accounting period in which they are potentially within the scope of the tax and do not meet certain conditions for exemption. There is a tax-geared penalty for failure to do so.

DPT is brought into charge by a designated HMRC officer issuing a charging notice. There are a number of safeguards which provide companies with opportunities to demonstrate that they are not subject to DPT before a charging notice is issued. However, once a tax charge is raised, it must be paid within 30 days of the issue of the notice and payment may not be postponed on any grounds, whether or not the charge is subject to review or appeal. Further tax may become payable by virtue of a supplementary charging notice. If a non-UK resident does not pay the tax due, it may be collected from a related party.

Information about notification, assessment and payment, including interest, penalties, appeals and the interaction with other taxes, is given in INTM489880.

Information about the procedures HMRC as to follow to impose a charge, including governance procedures, is set out in INTM489976.