The term 'Base Erosion and Profit Shifting' is sometimes seen in the news in the context of

The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

(a)

mining operation by multinational companies in resource-rich but backward areas

(b)

curbing of the tax evasion by multinational companies

(c)

exploitation of genetic resources of a country by multinational companies

(d)

lack of consideration of environmental costs in the planning and implementation of developmental projects.

Answer:

(b)

Explanation

The 2015 final reports of the Organisation for Economic Co-operation and Development (OECD)-led project on Base Erosion and Profit Shifting (BEPS) which refer to the erosion of a nations tax base due to the accounting tricks of Multinational Enterprises (MNEs) and the legal but abusive shifting out of profits to low-tax jurisdictions respectively lays out 15 action points to curb abusive tax avoidance by MNEs. As a participant of this project, India is expected to implement at least some of these measures. Tikdam: Prevent tax base erosion and shifting of profits to other countries