University professor and economist Mohamad Farida said tax evasion is a constant drain on Lebanon’s economy. He described the main ways profits are hidden and taxes avoided. These cover everyone from individuals to large and medium-sized companies.
Farida explained that tax evasion takes many forms. Some employees and employers make side deals not to declare real wages to social security. Professionals in the liberal professions often declare far less business than they actually do.
Among companies, Fraide said medium-sized firms often set up holding companies. They then pass money between group members to hide profits. They also benefit from a fixed lump-sum tax that does not depend on real profitability.
He then turned to large taxpayers and big companies, such as Solidere. According to Fraide, they have been paying late for years, and the pattern goes back to the 1990s. Successive governments have granted exemptions and discounts of up to 90% on accumulated fines. As a result, such companies pay at most 10% of what they owe.
Finally, Farida compared Lebanon with global figures. Worldwide, corporate profits make up about 30% of total tax revenue. In Lebanon, the share stays below 10%.
He ended with a key question. Will the current government keep granting exemptions as before? Or will it end this pattern and force large taxpayers to meet their full tax obligations?
