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

1. A

   Mining operation by multinational companies in resource-rich but backward areas

   Mining by multinational companies in resource-rich backward areas is a development-and-environment issue, sometimes discussed as resource curse. It is not what ‘Base Erosion and Profit Shifting’ means in tax diplomacy. This option is not the key.

2. B

   Curbing of the tax evasion by multinational companies

   Base Erosion and Profit Shifting (BEPS) refers to tax-planning strategies by which multinational enterprises shift profits from high-tax to low-tax jurisdictions and erode the tax base of the countries where real activity occurs. The OECD/G20 BEPS project aims to curb that tax avoidance and evasion. That is why (b) is the official key.

3. C

   Exploitation of genetic resources of a country by multinational companies

   Exploitation of genetic resources by MNCs is the biopiracy / Nagoya Protocol debate, not BEPS. This option is therefore wrong.

4. D

   Lack of consideration of environmental costs in the planning and implementation of developmental projects

   Ignoring environmental costs in project planning is an externality or EIA failure, not the BEPS agenda. This option is not the key.

Summary. Official key is (b) curbing of the tax evasion by multinational companies. BEPS is the OECD/G20 label for profit-shifting devices such as transfer mispricing, treaty shopping and hybrid mismatches. India has aligned several domestic rules with BEPS actions, including country-by-country reporting. The term is not about mines, biopiracy or EIA. Only (b) places it in international taxation.