Notice Information
Notice Title
Research Specification into customers' experience of the Profit Diversion Compliance Facility & the Diverted Profits Investigation Approach
Notice Description
Overview HM Revenue & Customs (HMRC) invites suppliers from the Research Marketplace agreement (RM6018) to undertake research aimed at understanding customers' experience of the Profit Diversion Compliance Facility (PDCF) and the Diverted Profits (DP) Investigation Approach. HMRC intends for this contract to be in place by 16th December 2021, with final outputs required by 29th June 2022. HMRC will maintain the overall management of the project. Context Profit diversion is HMRC's largest Corporation Tax risk, with the OECD estimating global tax losses of $100-240bn/pa. HMRC are keen to further improve efficient ways of tackling profit diversion. A key area of profit diversion is the diversion of profit (DP) by large groups that: (i) Seek to avoid creating a UK permanent establishment that would make a foreign company liable to pay UK Corporation Tax, or (ii) Use arrangements or entities that lack economic substance to exploit tax mismatches either through expenditure or the diversion of income within the group. There are two intervention approaches* to tackling profit diversion (all customers involved in this research will have completed one of these processes): 1.The PDCF: this facility gives multi-national enterprises (MNEs)using arrangements targeted by the Diverted Profits Tax (DPT) the opportunity to bring their UK tax affairs up to date. 2. DP enquiries: HMRC has identified a number of MNEs in a variety of business sectors that could be diverting profits. HMRC have established a Programme of investigation of the arrangements of these MNEs. This will involve a review of the customer's transfer pricing arrangements. Customers under enquiry may also face a potential DPT charge, which requires an upfront cash payment whilst the enquiry is ongoing if the relevant legislative conditions are met, and, depending on the cause of inaccuracies or failures to notify, they may face penalties or civil/criminal investigations. N.B. most PDCF and DP enquiries are settled by agreeing transfer pricing adjustments, in many cases, without DPT being charged. Independent qualitative research is essential to: *Understand independent customer views on the PDCF approach/process, informing design of new compliance facilities and accompanying guidance in significant tax risk areas. *Compare customer experience (PDCF-vs-enquiries). *Provide further insight to feed into the Large Business Tax Admin Review. *Understand the incentives and blockers for customers choosing to participate in the PDCF. The findings from this research will be used to inform improvements in HMRC's strategy for tackling profit diversion and consider the appropriateness of any wider use of a compliance facility for large business, delivering upstream/downstream yield, HMRC efficiencies and improved compliance standards.
Notice Details
Publication & Lifecycle
- Open Contracting ID
- ocds-b5fd17-69bf2516-96f6-40a0-b1e4-360ddb0f3075
- Publication Source
- Contracts Finder
- Latest Notice
- https://www.contractsfinder.service.gov.uk/Notice/b987d0bf-be52-4276-a98d-1d611adf3d7e
- Current Stage
- Award
- All Stages
- Award
Procurement Classification
- Notice Type
- Award Notice
- Procurement Type
- Framework
- Procurement Category
- Services
- Procurement Method
- Selective
- Procurement Method Details
- Call-off from a framework agreement
- Tender Suitability
- Not specified
- Awardee Scale
- Large
Common Procurement Vocabulary (CPV)
- CPV Divisions
73 - Research and development services and related consultancy services
-
- CPV Codes
73000000 - Research and development services and related consultancy services
Notice Value(s)
- Tender Value
- £50,000 Under £100K
- Lots Value
- Not specified
- Awards Value
- £50,000 Under £100K
- Contracts Value
- Not specified
Notice Dates
- Publication Date
- 2 Feb 20224 years ago
- Submission Deadline
- 24 Nov 2021Expired
- Future Notice Date
- Not specified
- Award Date
- 10 Jan 20224 years ago
- Contract Period
- 11 Jan 2022 - 29 Jun 2022 1-6 months
- Recurrence
- Not specified
Notice Status
- Tender Status
- Complete
- Lots Status
- Not Specified
- Awards Status
- Active
- Contracts Status
- Not Specified
Buyer & Supplier
Contracting Authority (Buyer)
- Main Buyer
- H M REVENUE & CUSTOMS
- Contact Name
- Available with D3 Tenders Premium →
- Contact Email
- Available with D3 Tenders Premium →
- Contact Phone
- Available with D3 Tenders Premium →
Buyer Location
- Locality
- SALFORD
- Postcode
- M60 9LA
- Post Town
- Manchester
- Country
- England
-
- Major Region (ITL 1)
- TLD North West (England)
- Basic Region (ITL 2)
- TLD3 Greater Manchester
- Small Region (ITL 3)
- TLD34 Greater Manchester South West
- Delivery Location
- TLC North East (England), TLD North West (England), TLF East Midlands (England), TLG West Midlands (England), TLH East (England), TLJ South East (England), TLK South West (England)
-
- Local Authority
- Salford
- Electoral Ward
- Ordsall
- Westminster Constituency
- Salford
Further Information
Notice Documents
-
https://www.contractsfinder.service.gov.uk/Notice/b987d0bf-be52-4276-a98d-1d611adf3d7e
2nd February 2022 - Awarded contract notice on Contracts Finder
Open Contracting Data Standard (OCDS)
View full OCDS Record for this contracting process
The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.
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