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Consider the following statements regarding Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.
1. India has approved the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.
2. The Convention is an outcome of the OECD / G20 BEPS Project to tackle base erosion and profit shifting.
3. The Convention will ensure that profits are taxed where substantive economic activities generating the profits are carried out and where value is created.
Which of the above statements is/are correct?
  • a)
    1, 2 
  • b)
    2, 3 
  • c)
    1, 3 
  • d)
    1, 2, 3
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Consider the following statements regarding Multilateral Convention to...
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
The Convention will modify India’s treaties in order to curb revenue loss through treaty abuse and base erosion and profit shifting strategies by ensuring that profits are taxed where substantive economic activities generating the profits are carried out and where value is created.
The Multilateral Convention is an outcome of the OECD / G20 Project to tackle Base Erosion and Profit Shifting (the “BEPS Project”) i.e., tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity, resulting in little or no tax being paid.
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Consider the following statements regarding Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.1. India has approved the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.2. The Convention is an outcome of the OECD / G20 BEPS Project to tackle base erosion and profit shifting.3. The Convention will ensure that profits are taxed where substantive economic activities generating the profits are carried out and where value is created.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements regarding Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.1. India has approved the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.2. The Convention is an outcome of the OECD / G20 BEPS Project to tackle base erosion and profit shifting.3. The Convention will ensure that profits are taxed where substantive economic activities generating the profits are carried out and where value is created.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.1. India has approved the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.2. The Convention is an outcome of the OECD / G20 BEPS Project to tackle base erosion and profit shifting.3. The Convention will ensure that profits are taxed where substantive economic activities generating the profits are carried out and where value is created.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.1. India has approved the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.2. The Convention is an outcome of the OECD / G20 BEPS Project to tackle base erosion and profit shifting.3. The Convention will ensure that profits are taxed where substantive economic activities generating the profits are carried out and where value is created.Which of the above statements is/are correct?a)1, 2b)2, 3c)1, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer?.
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