Base Erosion and Profit Shifting (BEPS)

Base Erosion and Profit Shifting (BEPS) refers to the strategies used by multinational companies to avoid paying tax, by exploiting the mismatches and gaps in the tax rules.

Base Erosion and Profit Shifting (BEPS) is mostly prevalent in Intellectual Property (IP) intensive Technology domain (companies like Google, Apple, etc.) and the companies in Life Sciences domain like Pfizer, Merck, etc.

How BEPS Works?

  • Tax is levied on the multinational company by the Government as a percentage of the profit or income of the multinational company.
  • Using the loopholes, the multinational company shifts its income or profit to another country which could ....
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Indian Economy & Socio-economic Development