Question

74. “Base Erosion and Profit Shifting (BEPS )” makes news repeatedly in the recent past. Which of the following better defines BEPS ?

• A. a) Resolving NPA crisis in banking sector
• B. b) Tax avoidance strategy
• C. c) Free movement of skilled professional across countries
• D. d) Free movement of goods across countries

Answer 1

The correct option is B

b) Tax avoidance strategy

B)
Explantion:

Base erosion and profit shifting (BEPS) is a tax avoidance strategy used by multinational companies, wherein profits are shifted from jurisdictions that have high taxes (such as the United States and many Western European countries) to jurisdictions that have low (or no) taxes (so-called tax havens).