The term 'Base Erosion and Profit Shifting' is sometimes seen in the news in the context of
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Answer: B. Base Erosion and Profit Shifting (BEPS) means tax planning by multinational companies that shifts profits to low-tax places to avoid tax. The OECD/G20 BEPS project (final reports 2015) aims to curb it.
Watch for: 'Base erosion' sounds like resource or soil loss.
Why the other options are wrong
- A. Wrong because BEPS is not about mining in backward areas.
- C. Wrong because genetic resource exploitation is biopiracy, not BEPS.
- D. Wrong because BEPS is about tax, not environmental costs.
Source to check: OECD/G20 Base Erosion and Profit Shifting Project, Final Reports 2015 (oecd.org/tax/beps)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.