Diverted profits tax

Part of Finance (No. 3) Bill – in a Public Bill Committee at 2:00 pm on 29 November 2018.

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Photo of Anneliese Dodds Anneliese Dodds Shadow Minister (Treasury) 2:00, 29 November 2018

The Minister knows that I have a lot of respect for him. However, that was exactly my point: the two taxes are based on a fundamentally different view of what should be taxed. Obviously, a digital services tax would be revenue based, whereas DPT is still profit based, and based on the arm’s length principle. Surely one should therefore compare them in terms of their efficacy at generating tax revenue, preventing avoidance, and so on. The fact that they are different does not mean that it is not legitimate to compare them.