The United Nations Economic and Social Commission for Western Asia (ESCWA) revealed in a report entitled: "Policy Options and Financing Opportunities for the Arab Region in a New Global Tax System", that Arab governments lose about $ 9 billion annually. This is due to tax violations committed by multinational companies because of their harmful practices such as shifting profits away from the countries in which they carry out their activities, in order to evade their tax responsibilities. According to “ESCWA”, despite the excessive and generous tax incentives provided to multinational companies to attract them, which caused the loss of 60 percent of the Arab region's average potential revenues from corporate taxes. They transfer their profits to their home country or to safe havens, where the percentage of multinational companies paying the proposed global minimum effective tax rate of 15 percent does not exceed one-third of companies operating in the region.
Source (Alkhaleej Emirate Newspaper, Edited)
