two hours ago
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The United Nations Economic and Social Commission for Western Asia (ESCWA) announced that “Arab countries lose about $9 billion annually due to tax evasion by multinational corporations, and diverting their profits away from the countries in which they carry out their activities.”
In a summary titled “Policy Options and Financing Opportunities for the Arab Region in a New Global Tax System,” she said that despite the tax incentives granted to them, which caused a loss of 60 percent of the average potential revenue in the Arab region from corporate taxes, they turn their profits into countries of origin or safe havens, noting that only a third of these companies pay the proposed global minimum effective tax rate of 15 percent.
Rola Dashti, Executive Secretary of ESCWA, said that raising effective tax rates on multinational companies to 15 percent raises tax revenues for the region by amounts ranging between $5.5 billion and $9 billion annually.
The summary pointed out that the activities of these companies and their flows of foreign direct investment did not achieve an increase in job opportunities, and the pattern of capital investments incoming to the region still tends towards the extractive industries and real estate sectors.
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