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What do foreign oil companies have to do with the theft of the century? Expert explains
August 29, 2024
Baghdad/Iraq Observer
Many countries suffer from the phenomenon of tax evasion, as it is something that these countries are accustomed to.
The issue of evading taxes by some companies is normal and possible, but what is happening in Iraq is an attempt to extend the responsibility for financial violations to these companies.
Although financial violations were detected in the taxes paid by foreign oil companies during the period between 2017 and 2021, they are considered accumulations over several years.
In this regard, Hammam Al-Shamaa, professor of economics at the University of Baghdad, confirmed that the
process of tax evasion or the presence of violations between the amounts calculated by the General Tax Authority and what the companies charged with paying the tax are trying to evade as much as possible is a normal issue. Al-Shamaa told the Iraq Observer,
“The laws in Iraq are not so strict as to make tax evasion a major crime and entail severe penalties, and the
tax evasion or violations referred to by the Financial Supervision Bureau are accumulations that have resulted over several years, amounting to approximately 350 billion dinars.” He added,
“These violations are not always in the interest of the state.
The General Tax Authority, through the assessor or the responsible party such as the company’s accountant, carries out a kind of bargaining with the company in question to reach an agreed upon number, after which payment is made by the company.” He continued,
“But it also appears that the General Authority for Taxes has not held companies accountable, as it has made money accumulate such that tax deposits have become idle, and
there is an attempt to shortchange companies, not just Nour Zuhair with the scandal of theft of the century and tax deposits, as some are trying to extend responsibility to companies.”
The annual report for 2023 issued by the Financial Supervision Bureau revealed that there were differences of more than 366 billion dinars between the amounts calculated by the General Authority for Taxes based on the books of the Ministry of Oil and the amounts paid by foreign companies.
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August 29, 2024
Baghdad/Iraq Observer
Many countries suffer from the phenomenon of tax evasion, as it is something that these countries are accustomed to.
The issue of evading taxes by some companies is normal and possible, but what is happening in Iraq is an attempt to extend the responsibility for financial violations to these companies.
Although financial violations were detected in the taxes paid by foreign oil companies during the period between 2017 and 2021, they are considered accumulations over several years.
In this regard, Hammam Al-Shamaa, professor of economics at the University of Baghdad, confirmed that the
process of tax evasion or the presence of violations between the amounts calculated by the General Tax Authority and what the companies charged with paying the tax are trying to evade as much as possible is a normal issue. Al-Shamaa told the Iraq Observer,
“The laws in Iraq are not so strict as to make tax evasion a major crime and entail severe penalties, and the
tax evasion or violations referred to by the Financial Supervision Bureau are accumulations that have resulted over several years, amounting to approximately 350 billion dinars.” He added,
“These violations are not always in the interest of the state.
The General Tax Authority, through the assessor or the responsible party such as the company’s accountant, carries out a kind of bargaining with the company in question to reach an agreed upon number, after which payment is made by the company.” He continued,
“But it also appears that the General Authority for Taxes has not held companies accountable, as it has made money accumulate such that tax deposits have become idle, and
there is an attempt to shortchange companies, not just Nour Zuhair with the scandal of theft of the century and tax deposits, as some are trying to extend responsibility to companies.”
The annual report for 2023 issued by the Financial Supervision Bureau revealed that there were differences of more than 366 billion dinars between the amounts calculated by the General Authority for Taxes based on the books of the Ministry of Oil and the amounts paid by foreign companies.
[You must be registered and logged in to see this link.]
