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Overview of Diverted Profits Tax

Section 80 - involvement of entities or transactions lacking economic substance - situation 1 - UK company

Transaction or series of transactions

Section 80 exceptions � excepted loan relationship outcome

Section 80 exceptions � small or medium sized enterprises (SMEs)

Application to partnerships

Section 81 - involvement of entities or transactions lacking economic substance - extension to foreign companies with a UK permanent establishment

Consequences of section 80 or 81 applying

Consequences of section 80 or 81 applying - section 82 - key definitions

Consequences of section 80 or 81 applying - section 83 - cases where no taxable diverted profits arise

Consequences of section 80 or 81 applying - section 84 - calculation by reference to the actual provision

Consequences of section 80 or 81 applying - section 85 - calculation by reference to the relevant alternative provision

Estimating profits for notices � section 80 or 81 cases

Section 86 - avoidance of a UK taxable presence � situation 3

Section 86 exceptions � independent agents, etc.

Section 86 exceptions � companies with limited UK related sales or expenses

Section 86 exceptions � SMEs

Section 86 � the mismatch condition

Section 86 � the tax avoidance condition

Section 86 � application to partnerships

Section 87 - exception for limited UK-related sales or expenses

Consequences of section 86 applying

Consequences of section 86 applying - section 88 - key definitions

Consequences of section 86 applying - section 89 - calculation of profits where only tax avoidance condition is met

Consequences of section 86 applying - section 90 - mismatch condition is met - calculation by reference to the actual provision

Consequences of section 86 applying - section 91 - mismatch condition is met - calculation by reference to the relevant alternative provision

Estimating profits for notices - section 86 cases

The participation condition

The participation condition A - financing arrangements

The participation condition B - non-financing arrangements

The effective tax mismatch outcome

The effective tax mismatch outcome � reduction in the income of the first party

The effective tax mismatch outcome � exempted payments

The effective tax mismatch outcome � 80% payment test

The effective tax mismatch outcome - quantifying the tax reduction

The insufficient economic substance condition � overview

The insufficient economic substance condition � detail

Partnerships