Base Erosion and Profit Shifting (BEPS) in Developing Countries: an Analysis of Multinational Corporations' Tax Practices

EasyChair Preprint 14460

Abstract

Base Erosion and Profit Shifting (BEPS) poses significant challenges for developing countries, as it undermines their tax bases and hampers their economic growth. This paper analyzes the tax practices of multinational corporations (MNCs) that contribute to BEPS, with a focus on the impact on developing economies. By shifting profits to low or no-tax jurisdictions, MNCs exploit gaps and mismatches in tax rules, depriving developing countries of crucial tax revenues. The analysis examines the strategies used by MNCs, such as transfer pricing manipulation, interest deductions, and the use of tax havens, to minimize their tax liabilities.

Keyphrases: 1. **Base Erosion and Profit Shifting (BEPS)**, 10. **Controlled Foreign Corporation (CFC) Rules**, 11. **Tax Transparency**, 12. **Economic Inequality**, 13. **Tax Revenue Loss**, 14. **Fiscal Capacity**, 15. **Capacity Building**, 16. **Country-by-Country Reporting**, 17. **Global Minimum Tax**, 18. **Tax Policy Reforms**, 19. **Regional Tax Cooperation**, 2. **Multinational Corporations (MNCs)**, 20. **Digital Economy Taxation**, 21. **Tax Competition**, 22. **International Tax Standards**, 23. **Enforcement Mechanisms**, 24. **Public Service Funding**, 25. **Sustainable Development Goals (SDGs)**, 3. **Tax Avoidance**, 4. **Transfer Pricing**, 5. **Profit Shifting**, 6. **Tax Havens**, 7. **Developing Countries**, 8. **International Tax Law**, 9. **OECD BEPS Project**

@booklet{EasyChair:14460,
  author    = {Wayzman Kolawole},
  title     = {Base Erosion and Profit Shifting (BEPS) in Developing Countries: an Analysis of Multinational Corporations' Tax Practices},
  howpublished = {EasyChair Preprint 14460},
  year      = {EasyChair, 2024}}