The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

Question

The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of
(a) mining operation by multinational companies in resource-rich but backward areas
(b) curbing of the tax evasion by multinational companies
(c) exploitation of genetic resources of a country by multinational companies
(d) lack of consideration of environmental costs in the planning and implementation of developmental projects.

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Salim Ahmed Kawsar · Answer 1 · Feb 05, 2023 15:29:48

(b) (i) Base Erosion and Profit Shifting (BEPS) is a tax avoidance strategy used by multinational companies, wherein profits are shifted from jurisdictions that have high taxes (such as the United States and many Western European countries) to jurisdictions that have low (or no) taxes (so-called tax havens). The BEPS project is said to be an “attempt by the world’s major economies to try to rewrite the rules on corporate taxation to address the widespread perception that the [corporations] don’t pay their fair share of taxes”.
(ii) BEPS aims to curb the tax evasion by MNCs, hence B is the answer.

The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

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