The correct option is Option 2: curbing of the tax evasion by multinational companies.

Base Erosion and Profit Shifting (BEPS) refers to a set of tax planning strategies used by multinational companies to exploit gaps and mismatches in tax rules in different jurisdictions, with the aim of reducing their overall tax liability. BEPS allows multinational companies to shift their profits from high-tax jurisdictions to low-tax or no-tax jurisdictions, thereby eroding the tax base of the high-tax jurisdictions and shifting profits away from where the economic activities generating those profits are actually taking place.

BEPS has become a significant global issue as it can result in substantial revenue losses for countries, particularly developing countries, and undermines the fairness and integrity of the global tax system. The term "Base" in BEPS refers to the tax base, which is the amount on which taxes are calculated, and "Profit Shifting" refers to the practice of moving profits from one jurisdiction to another to take advantage of lower tax rates or loopholes.

BEPS involves complex and sophisticated tax planning strategies, such as transfer pricing manipulation, which involves setting prices for goods, services, and intangible assets transferred between related entities within a multinational company in a way that artificially shifts profits to low-tax jurisdictions. Other BEPS strategies include the use of tax havens or offshore financial centers to establish shell companies or holding companies for the purpose of routing profits, and taking advantage of hybrid mismatch arrangements that exploit differences in tax treatment of financial instruments or entities between jurisdictions.

To address the issue of BEPS, the Organisation for Economic Co-operation and Development (OECD) and the G20 countries launched the BEPS Project in 2013, which aims to develop comprehensive measures to tackle BEPS and ensure that multinational companies are paying their fair share of taxes where economic activities are taking place and value is created. The BEPS Project has resulted in the development of 15 action points, known as the BEPS Action Plan, which includes measures to strengthen international tax rules, improve transparency and exchange of information among countries, and enhance dispute resolution mechanisms.

Countries around the world have been taking steps to implement the BEPS measures into their domestic tax laws to curb tax evasion by multinational companies. These measures include introducing stricter transfer pricing regulations, adopting anti-abuse provisions, implementing country-by-country reporting requirements, and improving mechanisms for exchanging tax information between countries. Additionally, some countries have been taking unilateral actions to tax digital economy transactions and prevent aggressive tax planning by multinational companies.

In conclusion, the term Base Erosion and Profit Shifting (BEPS) is often seen in the news in the context of curbing tax evasion by multinational companies. BEPS refers to a set of tax planning strategies used by multinational companies to exploit gaps and mismatches in tax rules, with the aim of reducing their overall tax liability. BEPS has become a global issue, and efforts are being made by international organizations and countries to develop and implement measures to address BEPS and ensure that multinational companies are paying their fair share of taxes.