UK: Tax Avoidance Techniques to be Discovered by Profit Diversion

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The new Profit Diversion Compliance Facility (PDCF) established by HM Revenue & Customs in the UK has announced plans to refer to international companies to share their cross-border tactics to artificially reduce their UK profits, including provisions that may fall under the diverted profits tax laws.

Additionally, certain businesses involved in high risk activities in the UK will be receiving warning letters from the HMRC, advising them to use the PDCF scheme and consider registering for the Compliance Facility if they have outstanding liabilities or are involved in deemed profit shifting activities.