U.K. Companies Can Avoid ‘Google Tax’ Penalties Under New Program (1)

The U.K. tax office is giving companies a chance to avoid a 30 percent penalty if they disclose their exposure to the “Google” tax through a new notification program.

The new mechanism, launched Jan. 10, gives corporate taxpayers an opportunity to come clean about their intercompany transactions and pricing arrangements, which are likely in scope for the 25 percent diverted profits tax charge. The higher DPT charge is imposed instead of corporate tax when profits are shifted to low or no-tax jurisdictions, to avoid U.K. tax.

In its Jan. 10 guidance setting out the terms of the new facility, HMRC ...