{"id":239998,"date":"2023-04-28T10:52:15","date_gmt":"2023-04-28T05:22:15","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=239998"},"modified":"2023-04-28T10:52:15","modified_gmt":"2023-04-28T05:22:15","slug":"base-erosion-and-profit-shifting","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/base-erosion-and-profit-shifting\/","title":{"rendered":"Base Erosion and Profit Shifting"},"content":{"rendered":"

Base erosion and profit shifting refers to the practice of businesses moving their earnings to other tax jurisdictions where the tax rates are lower.<\/p>\n

BEPS is a method of tax evasion employed by several multinational firms to artificially move earnings to low- or no-tax jurisdictions.<\/p>\n

The integrity and credibility of tax systems are impacted because multinational corporations can use BEPS to gain a competitive advantage over domestic firms. It has weakened India’s tax base in the process.<\/p>\n

For example, it involves the transfer of earnings from nations with high tax burdens (such the United States and European nations) to nations with low (or no) tax burdens (so-called tax havens), like Bahamas & Cayman Islands.<\/p>\n

To address this, the OECD and G20 nations created the BEPS Action Plan in 2013.<\/p>\n

Steps taken by Indian Government:\u00a0<\/strong><\/p>\n