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UPSC 2016: 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
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Not attemptedCorrect Answer: (b) curbing of the tax evasion by multinational companies
Base Erosion and Profit Shifting (BEPS) refers to strategies by multinational enterprises to shift profits to low-tax jurisdictions, thereby eroding the tax base of higher-tax countries; global talks under the OECD/G-20 BEPS Project aim to curb such tax evasion. Options (a), (c) and (d) have no relation to BEPS, which is purely a corporate tax-avoidance issue. ([oecd.org](https://www.oecd.org/tax/beps/?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2016 Indian Economy question?▼
The correct answer is option (b): curbing of the tax evasion by multinational companies. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Taxation question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2016, GS Paper 1, as Question 60. It falls under Indian Economy > Taxation.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Taxation?▼
UPSC has asked 19 questions from Taxation (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.