Big tech isn't the only sector to feel the diverted profits tax pain

Has the diverted profits tax achieved what it was designed to do?

Reduces corporate tax on profits earned in the UK

Delays taxing profits earned in the UK

Diverts UK tax away to overseas subsidiaries

To stop corporates shifting profits out of the UK

What rate is the so-called Google tax?

The tax imposes a 25 percent rate on such profits

The tax imposes a 18 percent rate on such profits

The tax imposes a 20 percent rate on such profits

The tax imposes a 19 percent rate on such profits

Why did the diverted profits tax get its nickname Google tax?

Because Google invented the tax

Because Google never paid tax in the UK despite earning profits there

Because large tech companies based regional HQs in low tax jurisdictions and filtered profits through those operations

Because the tax structure is the same as the operational structure at Google

Has the tax, introduced in 2015, been effectively in increasing corporation tax?

omewhat taxes raised from the Google tax were £138m

No little has been raised from this new tax

Somewhat taxes raised from the Google tax were £25m in 2015/16 and £275m in 2016/17

Yes taxes raised from the Google tax were £31m in 2015/16 and £281m in 2016/17

Why did DPT charging notices rise in the second year of the tax?

Because companies wanted to avoid the higher tax band

Because companies earned more profits that year

Because companies were not aware of the tax in the first year

Because authorities cracked down more heavily

What, according to ACCA, are some companies doing to avoid being hit by this tax?

Structuring the business so that they are not caught

Moving sales out of the UK

Leaving the UK

Artificially reducing UK profits

What positive side-effect has emerged for HMRC of the new tax?

It is more respected by corporates for its clear strategy

Tax take from transfer pricing settlements has risen from £1bn to £1.6bn in two years

It is boosted staff attraction and retention

A fall in corporate tax avoidance

What does Diageo potentially face before the end of the year?

A £10m DPT notice

A hefty bill for transfer pricing

A Google tax bill for £107million

A tax investigation

What do companies have to do if they fall into DPT rules?

They must pay immediately

They must first settle their transfer pricing bill

They must inform HMRC within three months of year end

They can negotiate with HMRC to defer any taxes

When does a company have to pay once they receive a charging notice?

90 days

60 days

30 days

Two years

Big tech isn't the only sector to feel the diverted profits tax pain

Has the diverted profits tax achieved what it was designed to do?

What rate is the so-called Google tax?

Why did the diverted profits tax get its nickname Google tax?

Has the tax, introduced in 2015, been effectively in increasing corporation tax?

Why did DPT charging notices rise in the second year of the tax?

What, according to ACCA, are some companies doing to avoid being hit by this tax?

What positive side-effect has emerged for HMRC of the new tax?

What does Diageo potentially face before the end of the year?

What do companies have to do if they fall into DPT rules?

When does a company have to pay once they receive a charging notice?

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Big tech isn't the only sector to feel the diverted profits tax pain

Has the diverted profits tax achieved what it was designed to do?

What rate is the so-called Google tax?

Why did the diverted profits tax get its nickname Google tax?

Has the tax, introduced in 2015, been effectively in increasing corporation tax?

Why did DPT charging notices rise in the second year of the tax?

What, according to ACCA, are some companies doing to avoid being hit by this tax?

What positive side-effect has emerged for HMRC of the new tax?

What does Diageo potentially face before the end of the year?

What do companies have to do if they fall into DPT rules?

When does a company have to pay once they receive a charging notice?

You scored

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out of

0

Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

Related topics

Our sites

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