Base Erosion and Profit Shifting (BEPS) | Finance for Managers

Finance for managers must have heard about base erosion and profit shifting, in short, BEPS. But those who are unaware of it must watch this wonderful video by your own Finance Guru, Vishal Thakkar.

Ladies and gentlemen boys and girls welcome back to finance tube your friend and finance guru vishal thakur is back again with one of the international topics today for discussion yes the topic that i’m talking about is becks be eps what is beb’s what does it stand for how does it affect me bet stands for base erosion and profit shifting now this term is coined by

Oecd the organization for economic cooperation and development which consists of 20 countries these countries have realized that very large corporations have been trying to manipulate and shift profits to countries which have either low tax or no tax so-called tax havens so they have come to a conclusion that because of this aggressive tax planning and structuring

Done by corporations and individuals lot of governments across the world are losing a lot of taxation money and all the money is going and sitting in tax havens so be it illicit money in swiss banks big things like panama papers and other global level scams have made these people these governments realize and given them a wake-up call that they need to do something

About base erosion and profit shifting done by these influential individuals and multinational corporations so oacd has come up with a 15-point action plan which they plan to roll out globally to ensure that individuals and corporations don’t do any kind of manipulation in their finance in order to save tax in different countries and park their money in tax havens

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So this 15-point action plan hits india as on next year and it kind of creates a big barrier for people who are trying to manipulate their financial statements or trying to save tags through complicated structuring that they do now what it means for us it means that our companies in india and multinational corporations in india need to be more transparent have to

Comply with the transfer pricing requirements how proper substance and documentation in place in order to ensure that they are fulfilling the beb’s guideline given to them this issue has more to do it transfer mispricing rather than transfer pricing and altering the trade rules in such a way that most of these multinational corporations try to create entities in

Areas where there are low taxes or no taxes and then they try to transfer all their profits there now with the cooperation of so many governments coming together it will become more difficult for multinational organizations and high-net-worth individuals to do all of this so in the interest of compliance and fair taxation bps is coming and it will hit us in a big

Way in the near future for more information on bps taxation illness and finance keep watching our channel financed you and if you haven’t subscribed subscribe now financed you if management’s cutoff rate is higher in the irr of the project then the management may not like to go ahead with the project

Transcribed from video
Base Erosion and Profit Shifting (BEPS) | Finance for Managers By Finance Tube

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