alleryStart learning →Base erosion and profit shifting involves moving profits from higher-tax to:
AHigher-tax locations
BLower-tax or no-tax locations
CLocations with more employees
DLocations with more customers
Answer & Solution
Correct answer: B. Lower-tax or no-tax locations
BEPS strategies shift profits to lower-tax or no-tax locations where there is little economic activity.
Keep practising Anti-avoidance Provisions
Browse all Anti-avoidance Provisions questions for CA Final, or explore more Taxation topics.
Related questions
Accounting substance over form shows economic reality, not just:Which BEPS tool is easy to create without moving assets, functions or personnel?Which asset type is described as the raw material of tax avoidance in BEPS planning?BEPS Action 12 deals with disclosure of what?Which payments do multinationals use to erode a higher-tax base?For US CFC purposes, a US Shareholder owns at least what share of the foreign corporation?Under US rules, a foreign corporation is a CFC if more than what share is owned by US SharThe US Subpart F CFC rules were enacted in which year?