HMRC confirmed it is working with five other tax authorities to share information about how digital multinationals might be shifting their profits to tax havens. Information from the ‘E6’ project will feed into how HMRC applies the new Diverted Profits Tax (DPT) which applies from 1 April 2015.

The DPT is set at a rate of 25% to target multinationals that avoid paying tax on profits from UK activity by shifting them to countries where they’ll go untaxed.

The E6 project is an example of international collaboration on tax avoidance. HMRC is already part of the Joint International Tax Shelter Information Collaboration – a group of more than 20 tax administrations that collaborate and exchange information on complex tax avoidance schemes and structures involving multinational enterprises and high net worth individuals.

The UK is also working with the Organisation for Economic Cooperation and Development (OECD) to reach international agreement on how the global corporate tax system can be reformed to remove opportunities for avoidance through the OECD’s BEPS project.