Lebanese banks oppose wealth tax over $600M in fictitious gains
The article addressed the Lebanese Banking Association's rejection of the Ministry of Finance's proposal to impose taxes on phantom profits amounting to over $600 million on actual losses. This move is part of corrective measures related to tax filings for the years 2020-2024. The association emphasized that the deadline set for submitting corrections is unfeasible due to the large scope of the required adjustments and called for a suspension of the deadline and the resumption of negotiations with the ministry. The objection is rooted in concerns about the impact of these taxes on bank liquidity and financial stability, especially since accounting differences resulting from exchange rates are considered unreal. The association fears that these measures could deplete liquidity and threaten depositors' rights. They also reaffirmed that taxing unrealized profits constitutes legal overreach, pointing out that the disagreement revolves around how to calculate gains and losses from exchange rate differences and some provisions related to losses on Eurobond bonds.
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