Base erosion and profit shifting ( BEPS ) are tax avoidance strategies that are adopted by multinational enterprises ( MNEs ) to take advantage of the mismatches and gaps that exist in the tax laws of different jurisdictions to artificially shift profits to a jurisdiction with a low or no tax exposures .
The Organisation of Economic Cooperation and Development ( OECD ) and G 20 countries
1. have made consistent efforts towards the implementation of the fifteen ( 15 ) tax treaty – related action plans ( BEPS Action Plan )
2. initiated to prevent BEPS . This BEPS Action Plan are therefore aimed at ensuring that MNEs are taxed in the countries where they have economic substance and value creation as well as prevents MNEs from being exposed to double taxation .
