Base Erosion and Profits Shifting (BEPS)

Why is it in the news?
    • The government ratified the international agreement to curb base erosion and profits shifting (BEPS).
    • The move is to stop companies from moving their profits out of the country and depriving the government of tax revenue.
 
Manual Scavenging in India
    • India has ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.
    • The convention was signed by the Finance Minister in Paris on June 7, 2017 on behalf of India.
    • Base erosion and profit shifting:
      (1) Base erosion and profit shifting refers to the phenomenon where companies shift their profits to other tax jurisdictions.
      (2) It refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations.
      (3) Under the OECD/G20 Inclusive Framework on BEPS, over 125 countries and jurisdictions are collaborating to implement the BEPS measures and tackle BEPS.
    Source
    The Hindu.




    Posted by Jawwad Kazi on 3rd Jul 2019
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