Base erosion and profit shifting (“BEPS”) are tax practices used by multinational companies to shift their profits to low or no tax jurisdictions, due to the existence of legal gaps in tax matters that ease the avoidance of double taxation of income.
In order to look for solutions that eliminate said practice, the OECD together with the G20 published in October 2015 the final report of the BEPS Action Plan, which sets forth 15 actions to eradicate its use. Among them are the following:
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