The tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax is known as:

Correct option is B

BEPS stands for Base Erosion and Profit Shifting. It refers to tax planning strategies employed by multinational enterprises to exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax jurisdictions where there is little or no economic activity, thereby eroding the tax base of higher-tax jurisdictions. BEPS practices can result in significant loss of revenue for governments, especially for developing countries, which are more dependent on corporate income tax. The Organisation for Economic Co-operation and Development (OECD) has initiated a BEPS Action Plan to address these challenges.
Information Booster
Base Erosion: Refers to reducing the tax base in high-tax jurisdictions by deducting expenses like interest or royalties paid to related parties in low-tax jurisdictions. Profit Shifting: Refers to transferring profits from high-tax to low-tax jurisdictions through techniques like transfer pricing and intra-group financial arrangements. The OECD BEPS project focuses on creating policies and regulations to curb such practices.
Additional Knowledge
Option (a) AEPS: Refers to Aadhaar Enabled Payment System in India and is unrelated to tax planning.
Option (c) EBPS: Not a valid term in tax context.
Option (d) CEPS: Stands for Central European Power System or other unrelated terms and is not linked to taxation strategies.