Diverted profits tax and Mid-sized companies: Difference between pages

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imported>Doug Williamson
(Identify tax anti-avoidance context.)
 
imported>Doug Williamson
(Remove superseded UK material.)
 
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''UK tax - anti-avoidance''.
Smaller, large companies.


(DPT).
Often firms are classified as small, medium or large. Different definitions of the categories apply for different purposes, in different jurisdictions and in formal and informal use.


A UK tax applied at a rate of 25%, from 2015.
A common grouping is [[Small and Medium-sized Enterprises]] (SMEs). They may benefit from easier financial reporting requirements, tax provisions or eligibility for various government-provided support.


The DPT applies to large multinational enterprises with business activities in the UK who enter into ‘contrived’ arrangements to divert profits from the UK by avoiding a UK taxable permanent establishment and/or by other ‘contrived’ arrangements between connected entities.
Most firms are small, some are medium-sized and few are large. But the size of firms in the large category vary greatly. It has become useful to distinguish smaller large companies for some purposes.


For example, in European Union usage, SMEs do not exceed €43m in turnover while large companies turn over many billions. Opportunities of many kinds vary materially with a firm's size, for example, the available range of investment and financing opportunities.


==See also==


* [[Base erosion and profit shifting]]
No doubt terminology will continue to develop until its use in law and regulation makes further change more difficult or confusing.
* [[Common Consolidated Corporate Tax Base]]
* [[Corporation Tax]]
* [[Double taxation]]
* [[Financial Transaction Tax]]
* [[Permanent establishment]]
* [[Tax avoidance]]
* [[Transfer pricing]]


 
[[Category:The_business_context]]
===Other links===
[http://dx.doi.org/10.1787/9789264202719-en Action Plan on Base Erosion and Profit Shifting, OECD Publishing, OECD 2013]

Revision as of 11:17, 16 July 2019

Smaller, large companies.

Often firms are classified as small, medium or large. Different definitions of the categories apply for different purposes, in different jurisdictions and in formal and informal use.

A common grouping is Small and Medium-sized Enterprises (SMEs). They may benefit from easier financial reporting requirements, tax provisions or eligibility for various government-provided support.

Most firms are small, some are medium-sized and few are large. But the size of firms in the large category vary greatly. It has become useful to distinguish smaller large companies for some purposes.

For example, in European Union usage, SMEs do not exceed €43m in turnover while large companies turn over many billions. Opportunities of many kinds vary materially with a firm's size, for example, the available range of investment and financing opportunities.


No doubt terminology will continue to develop until its use in law and regulation makes further change more difficult or confusing.