Base erosion and profit shifting practices (BEPS) exercised by MNEs contribute to the loss of billions USD of tax revenues worldwide.

Conservative estimates indicate annual losses of anywhere from 4 to 10% of global CIT revenues, i.e. USD 100 – 240 billion annually. This the reason why the World leading economies could no longer continue to passively observe that damage being done to the world economy and tax systems.

BEPS refers to tax planning strategies exploiting gaps and mismatches in tax rules in order to shift artificially profits from high-tax jurisdictions to low or no-tax jurisdictions where there is little or no economic activity (artificial arrangements).

The aim of the lecture is to present the OECD/G20 BEPS initiative containing the 15 actions set out to equip governments with domestic and international legal instruments to address tax avoidance practices, ensuring that profits are taxed where economic activities generating the profits are performed and where value is created, in order to improve the sustainable society.