BEPS, or Base Erosion and Profit Shifting, refers to tax avoidance strategies used by multinational companies to shift profits from high-tax jurisdictions to low-tax ones. This practice can lead to significant revenue losses for countries, as companies exploit gaps and mismatches in tax rules. To combat BEPS, the OECD (Organisation for Economic Co-operation and Development) developed a set of recommendations known as the BEPS Action Plan. This plan aims to create a fairer international tax system by ensuring that profits are taxed where economic activities occur and value is created, thereby reducing tax avoidance.