BEPS Action 11: What is Tax Avoidance?

BEPS Action 11 stands out from the other actions in one very obvious way: it has little to do with taxpayers themselves. As a result, it has received the least attention. From the perspective of tax planning and risk mitigation, BEPS Action 11 offers little practical value for readers. However, it does provide a broader and deeper understanding of tax avoidance, including its definition, its scale, the economic losses it causes to governments, and how countries monitor it.

BEPS Action 11 is divided into four main parts:

• Evaluating existing data sources related to BEPS analysis
• Indicators reflecting BEPS activities
• Measuring the scale and economic impact of BEPS and anti-avoidance measures
• Providing better data and tools for future BEPS monitoring

The first and fourth parts focus on the challenges of existing BEPS-related data and how to improve data collection in the future. These sections are less relevant for understanding tax avoidance, so they won’t be discussed further in this article. Interested readers can consult the final report of BEPS Action 11 for more details.