The General Directorate of the Ministry of Finance, Palais de Justice sector in Beirut. Photo P.H.B.
Once again, the state yields to the Association of Banks in Lebanon (ABL). This time, the issue is fiscal: a proposed 17 percent tax on the provisions (or reserves) set aside by banks to absorb potential losses from Eurobonds. In response to a query from ABL regarding the possibility of a tax deduction on these provisions, the Finance Ministry stated last June that such provisions remain taxable as long as the losses are unrealized — that is, unless the bonds are sold at a loss or restructured under an agreement involving a reduction in their nominal value. Missed the context? Lebanese tax authorities demand $1 billion in back taxes from banks The stakes are high for the banking sector, particularly given that the bill was initially estimated at $1 billion. But according to our information, that amount is expected to be reduced to...
Once again, the state yields to the Association of Banks in Lebanon (ABL). This time, the issue is fiscal: a proposed 17 percent tax on the provisions (or reserves) set aside by banks to absorb potential losses from Eurobonds. In response to a query from ABL regarding the possibility of a tax deduction on these provisions, the Finance Ministry stated last June that such provisions remain taxable as long as the losses are unrealized — that is, unless the bonds are sold at a loss or restructured under an agreement involving a reduction in their nominal value. Missed the context? Lebanese tax authorities demand $1 billion in back taxes from banks The stakes are high for the banking sector, particularly given that the bill was initially estimated at $1 billion. But according to our information, that amount is expected to be reduced...
