U.K. Tax Official: Diverted Profits Tax is ‘Game Changer’

The U.K.’s diverted profits tax on multinational companies has been a “game changer” in forcing them to adopt less aggressive tax planning, according to a senior government official.

The diverted profits tax (DPT) “has caused companies to look again at their transfer pricing structures,” Jim Harra, the U.K. tax agency’s director general for customer strategy, said in a Nov. 6 parliamentary evidence session with the Public Accounts Committee. “It’s really a game changer.”

The comments come amid concern from large businesses that the U.K. tax agency is wielding its diverted profits tax, or DPT, more aggressively than expected.

They also ...