Base erosion and profit shifting (BEPS) is strategy used by multinational companies to take advantage of lacunae and mismatches in tax regimes to minimise tax payments. Such strategies often result in economically weaker countries suffering more since they are heavily dependent on corporate income tax. It is estimated that the BEPS causes $100 billion to $240 billion revenue loss for countries.
139 countries and jurisdictions have united under the OECD/G20 Inclusive Framework on BEPS to enforce 15 measures to tackle tax avoidance, improve coordination of international tax rules and ensure a more transparent tax regime.
Written by IAS POINT