The Diverted Profits Tax (DPT) continues to attract scrutiny in the United Kingdom and Australia. Created to counter structures perceived to shift taxable profits away from where activities occur, DPT — often dubbed the ‘Google Tax’ — arrived in the UK in 2015 and in Australia in 2017, amid concerns that classic transfer pricing and […]
Google Tax
The Diverted Profits Tax & Royalty Withholding Tax: Impacts on Intellectual Property Licenses and Transactions
The Diverted Profits Tax (DPT) has been a significant area of focus for taxpayers and tax authorities in the UK and Australia. The tax targets specific situations in which taxable profits are alleged to have been “diverted” from the tax jurisdiction in question. The tax, also known as a “Google Tax”, was enacted in the […]