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James Baldwin: companies are looking for an attractive investment climate
7/23/2015 0:00
It warned that the temporary tax exemptions may be an incentive to evade tax
BAGHDAD
economic Academy warned that the temporary tax breaks may be a strong incentive for tax evasion, as it allows for projects taxable enter into economic relationships with exempt to convert profit projects through based pricing shifts mutual exaggerated price as payment for goods purchased from the other company, and then recovered in the form of hidden payments, and experiments indicate that companies have proven their skills in finding ways to get around the tax laws, and this is what Danh "morning" economic expert d. Wafa James Baldwin.
opportunities to circumvent She drew James Baldwin to the more sophisticated tax administration systems find it very difficult to deal with companies that abusing these exemptions, and there are opportunities to circumvent investors circumvent the temporary tax exemption and extended through the conversion of the investment project-based to a new project as close project and restarted under a different name with the stability of its owners. She added, dominates the interim tax breaks with time to attract short-term projects that are usually not very useful to the economy compared to the project's long-term, and rarely the cost of the temporary tax exemption on transparent budget revenues are what were not SPA projects exemption are required to submit tax returns and in the this case should the government agree of their resources with the Department of tax is generating revenue then lose the project not having to deal with the tax authorities advantage of these exemptions were not granted for very long periods may make investors skeptical of its credibility, and unless you can migrate allocations extinction until after the period tax exemption, the incentive to invest near the end of the exemption period may be less in reality than have it in the application of corporate tax as usual because investors are delaying their investments to make the most of these allocations. tax rate James Baldwin showed that when the government granted temporary tax breaks it indicate this on it is confident of tax matters and that this type of companies that are seeking tax policy to attract will find it better if the government pledged to impose low and fixed tax rate because the present value of tax payments in this case be less than in the case of granting a tax break temporary. It seems that several companies are attracted to these exemptions because they will not have to deal with corruption and tax administration systems or inefficient, and therefore, the granting of these exemptions may indicate in itself to corruption and tax administration or incompetence. Investment Law and indicated James Baldwin that the Iraqi Investment Law No. 13 of 2006 has not been without mention of temporary tax breaks as one attracting investment factors, and these exemptions are enjoyed winning project at an investment license from the National Investment Commission exemption from taxes and fees for a period of 10 years from the date of operation of the project, and the body of the National Investment increase the number of years of exemptions from taxes and fees of up to 15 years, as was the Iraqi investor's contribution to the project more than 50 percent, and there are several paragraphs in the investment law pertaining to this subject. elements of investment success and concluded economic Academy to say that what the Iraqi investment law of tax advantages for investors is a necessary condition but is not enough, because the investor does not only looking for tax advantages, but looking for facets attractive for investment is a tax one effervescence which is certainly not the strongest element and the rectifier is important, because the investment climate is made up of a series of combined, including economic factors, factors include the size of the market and the abundance of natural resources and the availability of infrastructure, and political factors, including political stability and government decision based on the basis of national interests and public values to represent the state protection Almesegh and a guarantee to the investor.
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7/23/2015 0:00
It warned that the temporary tax exemptions may be an incentive to evade tax
BAGHDAD
economic Academy warned that the temporary tax breaks may be a strong incentive for tax evasion, as it allows for projects taxable enter into economic relationships with exempt to convert profit projects through based pricing shifts mutual exaggerated price as payment for goods purchased from the other company, and then recovered in the form of hidden payments, and experiments indicate that companies have proven their skills in finding ways to get around the tax laws, and this is what Danh "morning" economic expert d. Wafa James Baldwin.
opportunities to circumvent She drew James Baldwin to the more sophisticated tax administration systems find it very difficult to deal with companies that abusing these exemptions, and there are opportunities to circumvent investors circumvent the temporary tax exemption and extended through the conversion of the investment project-based to a new project as close project and restarted under a different name with the stability of its owners. She added, dominates the interim tax breaks with time to attract short-term projects that are usually not very useful to the economy compared to the project's long-term, and rarely the cost of the temporary tax exemption on transparent budget revenues are what were not SPA projects exemption are required to submit tax returns and in the this case should the government agree of their resources with the Department of tax is generating revenue then lose the project not having to deal with the tax authorities advantage of these exemptions were not granted for very long periods may make investors skeptical of its credibility, and unless you can migrate allocations extinction until after the period tax exemption, the incentive to invest near the end of the exemption period may be less in reality than have it in the application of corporate tax as usual because investors are delaying their investments to make the most of these allocations. tax rate James Baldwin showed that when the government granted temporary tax breaks it indicate this on it is confident of tax matters and that this type of companies that are seeking tax policy to attract will find it better if the government pledged to impose low and fixed tax rate because the present value of tax payments in this case be less than in the case of granting a tax break temporary. It seems that several companies are attracted to these exemptions because they will not have to deal with corruption and tax administration systems or inefficient, and therefore, the granting of these exemptions may indicate in itself to corruption and tax administration or incompetence. Investment Law and indicated James Baldwin that the Iraqi Investment Law No. 13 of 2006 has not been without mention of temporary tax breaks as one attracting investment factors, and these exemptions are enjoyed winning project at an investment license from the National Investment Commission exemption from taxes and fees for a period of 10 years from the date of operation of the project, and the body of the National Investment increase the number of years of exemptions from taxes and fees of up to 15 years, as was the Iraqi investor's contribution to the project more than 50 percent, and there are several paragraphs in the investment law pertaining to this subject. elements of investment success and concluded economic Academy to say that what the Iraqi investment law of tax advantages for investors is a necessary condition but is not enough, because the investor does not only looking for tax advantages, but looking for facets attractive for investment is a tax one effervescence which is certainly not the strongest element and the rectifier is important, because the investment climate is made up of a series of combined, including economic factors, factors include the size of the market and the abundance of natural resources and the availability of infrastructure, and political factors, including political stability and government decision based on the basis of national interests and public values to represent the state protection Almesegh and a guarantee to the investor.
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