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GS Paper IUPSC Prelims 2016
Current Events
Question No. 117Interactive Test Mode
00:00
+2-0.66

Q117. The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2016 • International Relations and Current Affairs

Correct Answer: Option (B) — Curbing of the tax evasion by multinational companies

Concept & Option Breakdown

Standard Reference Verified

Base Erosion and Profit Shifting (BEPS) refers to corporate tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. The OECD/G20 BEPS Project was developed to curb this form of tax evasion/avoidance.

Elimination Heuristic & Exam Approach

'Base Erosion' refers to eroding the tax base and 'Profit Shifting' refers to shifting profits to tax havens — directly pointing to taxation issues.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2016 (Q117)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicInternational Relations and Current Affairs → Current Events
Official Answer KeyOption (B) — Curbing of the tax evasion by multinational companies

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Frequently Asked Questions — UPSC Prelims 2016 Q117

What is the official answer for UPSC Prelims 2016 GS Paper I Question 117 (International Relations and Current Affairs)?

The official UPSC answer key for this 2016 International Relations and Current Affairs (Current Events) question is Option (B): "Curbing of the tax evasion by multinational companies". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2016 question belong to?

This question belongs to GS Paper I under the subject "International Relations and Current Affairs" and micro-topic "Current Events". You can explore all repeated questions from Current Events in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Current Events UPSC Prelims question using option elimination?

'Base Erosion' refers to eroding the tax base and 'Profit Shifting' refers to shifting profits to tax havens — directly pointing to taxation issues.

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