Overview
James Ross said that UK legislation for a diverted profits tax is “designed to encourage multinationals to declare more profits in the UK.” Mr. Ross noted that tax planning for such companies increasingly involves lower-tax jurisdictions where substance can be achieved and employees are located, but for consumer companies that also involves questions of public perception. “Historically, tax advisers dealt with the law and how things might look to tax administrators,” he continued, but now they must also consider how tax strategies might be viewed in the court of public opinion.