The Base Erosion and Profit Shifting (BEPS) Project is an ongoing project
headed by the OECD that aims to set up an international framework
to combat tax avoidance by multinational enterprises (MNEs).
The project, under the jurisdiction of the OECD’s Committee on
Fiscal Affairs, began in 2013 and originally only involved OECD and
In November 2015, G20 leaders endorsed the OECD’s package of measures
released as part of the base erosion and profit shifting (BEPS) project.
The BEPS project, an ambitious plan undertaken jointly by the OECD and G20
to overhaul the global international tax system, culminated this year in
hundreds of pages of recommendations that, if adopted, could have a significant
impact on cross-border trade and the competitiveness of domestic businesses.
What is BEPS?
Base erosion and profit shifting (BEPS) refers to tax avoidance
strategies that exploit gaps and mismatches in tax rules to
artificially shift profits to low or no-tax locations. Under the
inclusive framework, over 100 countries and jurisdictions are
collaborating to implement the BEPS measures and tackle BEPS