Jaber Refers Over 100 Major Institutions to Financial Prosecution and Issues Two Decrees

Announced by the media office at the Ministry of Finance in a statement, "in a move combining stricter enforcement against tax evasion and enhanced compliance on one hand, and easing burdens on taxpayers wishing to settle their status on the other, Minister of Finance Yaseen Jaber submitted a letter to the General Financial Prosecution via the Ministry of Justice, listing the names of over 100 major institutions among prominent taxpayers who failed or refused to pay their due taxes despite being warned and formally requested to settle within the specified deadlines, requesting the necessary legal actions be taken against them according to established procedures.

In parallel with this firm stance on non-compliance cases, Jaber issued two decrees concerning the settlement and reduction of tax penalties, enabling taxpayers willing to comply and regularize their status to benefit from reduced penalties under defined conditions and deadlines, reflecting an approach that does not tolerate evasion but facilitates the return of compliant taxpayers to proper tax standing.

The referral to the General Financial Prosecution followed monitoring conducted by the tax administration on the files of the concerned institutions and issuance of formal warnings urging them to settle their status and pay outstanding obligations. However, the continued failure or refusal of some of these entities to pay necessitated moving from administrative claims to prosecution before the General Financial Prosecution.

These tax enforcement actions are particularly significant regarding the value-added tax, as the amounts collected by taxpayers from consumers under this heading do not constitute income for them, but rather funds held on behalf of the general treasury, which must be declared and remitted. Thus, failure to remit such funds means retaining state revenues collected on behalf of the government in the hands of the taxpayer instead of transferring them to the treasury.

Conversely, the two decrees issued by Jaber reducing penalties underscore that enhancing compliance extends beyond prosecution and punishment—it also includes providing taxpayers with an opportunity to correct their position and settle what is owed, through reductions in verification and collection penalties and other penalties covered under settlement terms, as stipulated in each decree. Among these, settlements apply to verification and collection penalties related to the value-added tax issued based on self-assessment notices starting from November 16, 2022, with reductions reaching up to 75 percent on proportional penalties, 60 percent on fixed penalties, and 75 percent on late payment (collection) penalties, depending on specific circumstances and conditions outlined in the decree. The measures remain in effect until October 30, 2026, inclusive.

A photograph of the letter referred to the General Financial Prosecution was also distributed; all other decrees can be accessed by relevant parties and interested individuals through the official website of the Ministry of Finance: Www.finance.gov.lb