The OECD/G20 BEPS initiative combats multinational tax avoidance, aiming to ensure profits are taxed where value is generated, restoring global tax fairness.

Base Erosion and Profit Shifting (BEPS) refers to tax strategies employed by multinational corporations to exploit gaps in tax laws, allowing them to shift profits to low or no-tax jurisdictions and reduce their tax liabilities. This practice undermines tax fairness, costing countries an estimated $100-240 billion annually, or approximately 4-10% of global corporate tax revenue. While some BEPS activities are illegal, many exploit legal loopholes, disproportionately affecting developing economies reliant on corporate tax revenue. The OECD/G20 BEPS Project, comprising over 140 countries, addresses these challenges through a unified framework with 15 measures. These actions aim to ensure that taxes are paid where economic value and activities occur, discourage tax avoidance, and inject coherence and transparency into global tax policies. A notable effort involves peer reviews and support for developing countries in implementing policies tailored to their unique needs. The framework also focuses on regulating tax challenges posed by digitalisation and facilitating dispute resolution to enhance global compliance. By engaging multilateral organisations and regional bodies, the initiative provides a global, collaborative approach to restoring trust in taxation systems and fostering level-playing field standards worldwide.