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

(a) mining operation by multinational companies in resource-rich but backward areas
(b) curbing of the tax evasion by multinational companies ✓ UPSC's answer
(c) exploitation of genetic resources of a country by multinational companies
(d) lack of consideration of environmental costs in the planning and implementation of developmental projects

Why the answer is (b)

• Base Erosion and Profit Shifting refers to tax-planning strategies by multinational companies that exploit gaps between countries' tax rules to shift profits to low- or no-tax jurisdictions, eroding the tax base of countries where the economic activity occurs.

• The OECD/G20 BEPS project (2013–15) produced 15 action points to curb this tax avoidance; the 2021 global minimum tax deal builds on it — option (b).

• Mining (a), genetic resources (c) and environmental costs (d) are unrelated.

• Hence option (b).

Why the other options are wrong

(a) mining operation by multinational companies in resource-rich but backward areas: BEPS is about taxation, not mining.
(c) exploitation of genetic resources of a country by multinational companies: BEPS is not about genetic resources.
(d) lack of consideration of environmental costs in the planning and implementation of…: BEPS is not about environmental costs.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2016, held on 7 August 2016. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.