This site uses cookies. and this alert will appear once and then not again.

The Profit Diversion Compliance Facility (‘PDCF’) opened in January 2019 to encourage businesses, not already under enquiry, to review their transfer pricing positions and produce a disclosure report and proposal to address any high-risk positions taken. 

The changing background to the PDCF:

  • HMRC is now focusing more resource on transactions and structures they see as diverting profits from the UK to low-taxed jurisdictions.
  • HMRC has adopted an evidence-based approach to its investigations relying heavily on ‘the facts on the ground’. This puts increasing emphasis on contemporaneous material- such as emails, professional advice received, sales and intra-group contracts. 
Take a look at our flyer below to learn more.