INTM489906 - Diverted Profits Tax: notification, charging and payment: content of the preliminary notice
A preliminary notice must:
- state the accounting period to which it applies,
- set out the basis on which the officer has reason to believe that the company falls within one or more of the three situations in which DPT applies (that is, where a UK company is involved with transactions or entities that lack economic substance, where a non-UK company acting through a UK PE is involved with transactions or entities that lack economic substance, and where a non-UK company avoids creating a UK taxable presence),
- explain the basis on which the charge, and separately any related interest, is calculated, including:
- how the taxable diverted profits have been determined,
- where relevant, details of the alternative provision,
- how the amount of interest comprised in the DPT charge would be calculated.
- state who is liable to pay the tax,
- explain how any late payment interest will be calculated if DPT is not paid, including the period for which it is charged, and the rate applied.
If the designated HMRC officer lacks sufficient information to determine any of the matters listed above, they should set them out to the best of their information and belief.
See INTM489580 for guidance on how profits are estimated and the charge to DPT is calculated in a preliminary notice.