UPSC CSE Prelims
Question 82
The term 'Base Erosion and Profit Shifting' is sometimes seen in the news in the context of
View correct answer and explanation
Correct answer: B
Correct Option: B
Explanation: Base Erosion and Profit Shifting (BEPS) denotes tax-planning strategies that shift multinational-company profits to low-tax jurisdictions, eroding tax bases; OECD/G20 coordinated countermeasures.
Option-wise Analysis:
A: Incorrect - Mining in underdeveloped regions is a different economic/environmental issue.
B: Correct - Correct-BEPS initiatives address aggressive tax avoidance and profit shifting by MNCs.
C: Incorrect - Biopiracy is about unauthorised exploitation of genetic resources, not BEPS taxation.
D: Incorrect - Ignoring environmental externalities does not define BEPS.