INTM489710 - Diverted Profits Tax: application of Diverted Profits Tax: legislation – Finance Act 2015 – core provisions: consequences of section 86 applying - section 90 - mismatch condition is met - calculation by reference to the actual provision
Section 90 applies where the mismatch condition is met and the actual provision condition is also 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).
Where section 90 applies taxable diverted profits are an amount equal to the notional PE profits.