Economy
2016
External Sector
Budget and Taxes
The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of
B.curbing of the tax evasion by multinational companies
D.lack of consideration of environmental costs in the planning and implementation of developmental projects
C.exploitation of genetic resources of a country by multinational companies
A.mining operation by multinational companies in resource-rich but backward areas
Correct Answer: Option B
Base Erosion and Profit Shifting (BEPS) refers to tax avoidance strategies used by multinational companies. These strategies exploit gaps and mismatches in tax rules to artificially shift profits to locations with low or no taxes.
Over 100 countries are collaborating under the inclusive framework to implement BEPS measures and tackle this issue.
Double-tax avoidance treaties and tax-information exchange between member nations are crucial tools used to curb this practice.
Therefore, the correct answer is curbing of tax evasion by multinational companies.
Source:
More Economy Questions
Which one of the following is the main objective of the ‘Make in India’ initiative?Economy · 2015With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instrum...Economy · 2024In the context of any country, which one of the following would be considered as part of its social ...Economy · 2019Which one of the following is likely to be the most inflationary in its effects?Economy · 2021With reference to the Indian economy, consider the following statements:Economy · 2022Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?Economy · 2017The Service Area Approach was implemented under the purview ofEconomy · 2019The money multiplier in an economy increases with which one of the following?Economy · 2021Consider the following statements:Economy · 2015With reference to Indian economy, demand-pull inflation can be caused/increased by which of the foll...Economy · 2021