What is international profit shifting?

The tax strategy deployed by multinational companies which involves shifting taxable profits to low tax countries from high tax countries with the objective of bringing down the overall tax paid is known as international profit shifting.You can read about the Base Erosion and Profit Shifting (BEPS) – Issues, Measures taken by India in the given link.

Further readings:

1. Taxation in India – Direct taxes, Indirect Taxes, Features of Taxation System
2. Organisation for Economic Co-operation and Development [OECD] – Objectives, Member Countries, Responsibilities