Base Erosion and Profit Shifting in Developing Countries: The Nigerian Experience

Cross-border tax situations arising as a result of international business transactions have led to Base Erosion and Profit Shifting (BEPS) where gaps and mismatches in tax laws are exploited to shift income, profits, and assets from one jurisdiction to another. Using MNCs listed on the Nigerian Exchange Group as its population and sample using the census method, the study carried out a content analysis of audited published financial statements between 2015 and 2022. Anchored on the theory of globalization, descriptive statistics was used in achieving the research objectives which were concerned with determining the extent of implementation of specific OEC/G20 BEPS Project requirements in the published financial statements. The study found that the financial services sector has the highest level of implementation while country-by-country reporting requirement is the most implemented. The study concluded that MNCs should continue implementation of the requirements while Nigerian tax authorities work hand-in-hand with international bodies to ensure that the nation's peculiarities are taken into consideration while formulating BEPS policies.