### Question
How does the law define base erosion payment?


### Answer
Under *26 U.S.C. § 59A*, **base erosion payment** is defined as:

> any amount paid or accrued by the taxpayer to a foreign person which is a related party of the taxpayer and with respect to which a deduction is allowable under this chapter

#### Citation:
  - *26 U.S.C. § 59A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART VII-BASE EROSION AND ANTI-ABUSE TAX**

