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Written question asked by Tulip Siddiq (Labour) on Friday, 6 May 2016, in the House of Commons. It was due for an answer on Tuesday, 10 May 2016. It was answered by David Gauke (Conservative) on Thursday, 12 May 2016 on behalf of the Treasury.

Taxation: Profits

Question

To ask Mr Chancellor of the Exchequer, how much was raised by the diverted profits tax in 2015-16.

Answer

The Diverted Profits Tax is designed to counteract contrived arrangements used to avoid tax in the UK, and incentivise businesses to change their behaviour and pay tax on profits from economic activities in the UK. The Office for Budget Responsibility's (OBR) recent assessment at Budget 2016 is that overall yield (including Corporation Tax from behavioural change) is expected to be close to that originally scored.

The OBR noted on page 122 of its “Economic and fiscal outlook” March 2016: “Our forecast assumes that overall yield from the measure will be close to that originally scored, but we now expect that around two-thirds of the yield will come through higher Corporation Tax payments (as firms restructure their tax affairs) rather than via the diverted profits tax itself.” This is available at: http://cdn.budgetresponsibility.org.uk/March2016EFO.pdf.

Secondary information

Type
Written question
Reference
36722
Session
2015-16
Subjects
Profits Taxation
Link
View this Written question on www.parliament.uk