Research and analysis

Customers' experience of the Profit Diversion Compliance Facility and Diverted Profits Enquiry Process 

Research which explored customers' experience of the Profit Diversion Compliance Facility and Diverted Profits Enquiry Process.

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HM Revenue and Customs (HMRC) commissioned independent research agency, IFF Research, to undertake qualitative research to understand customers’ experience of the Profit Diversion Compliance Facility (PDCF) and Diverted Profits (DP) Enquiry Process.

The research comprised of in-depth interviews with 35 large and mid-sized business customers who had either completed the PDCF process or been subject to a DP Enquiry.

Findings from this research will inform improvements in HMRC’s approaches for tackling profit diversion, as well as opportunities to use a compliance facility in other areas of tax risk as part of HMRC’s drive for efficient tax compliance.

The views in this report are the authors’ own and do not necessarily reflect those of HM Revenue and Customs.

Published 7 February 2023