Author: Shivani Singh, Student at Bennett University, Greater Noida
ABSTRACT
Base Erosion and Profit Shifting (BEPS) refers to the tax planning strategies employed by multinational corporations to artificially transfer profits from high-tax jurisdictions to low-tax jurisdictions, thereby reducing their overall tax liability. BEPS has become a significant concern for governments around the globe because it undermines their ability to collect tax revenue and can create an uneven playing field for domestic businesses. To combat BEPS, the Organisation for Economic Co-operation and formulation (OECD) has developed a comprehensive action plan that includes the formulation of new international tax standards and the strengthening of existing rules. These measures are intended to ensure that companies pay their equitable share of taxes and that the international tax system is fair, transparent, and efficient.
