With effect from 1 April 2015, the UK Government introduced a
new tax: the Diverted Profits Tax ("DPT"). The DPT is
aimed at countering the use of aggressive tax planning techniques
used by multinational enterprises to divert profits from the UK and
has been set at a deliberately punitive rate of 25% (compared to
the prevailing 20% rate of UK corporation tax).
The background to this new tax was the at-times frenzied press
coverage of the UK tax affairs of several well-known corporate
groups: Google, Starbucks, Facebook and Amazon, to name but a few.
The UK's Public Accounts Committee, with Margaret Hodge at the
helm, became heavily involved in a wider campaign, seemingly
supported by the UK public, to encourage multinationals to pay
their "fair share" of tax.
