US calls on Lebanon to quickly elect president 'free of corruption'


Jamie Prentis
  • English
  • Arabic

The US believes Lebanon needs to elect a president “free of corruption”, who can unite a deeply divided country entrenched in one of the worst economic crises in modern history.

Six months after Michel Aoun departed the presidential palace in Baabda, the State Department said the solution to Lebanon’s problems could only come internally and not from the international community.

“Now is the time for action to select appropriate leadership and save the country from further disaster,” it said.

Parliament has failed to elect a president during 12 sessions, with no candidate coming close to the threshold required to become head of state.

Speaker Nabih Berri has not called MPs back to vote on the issue for months, such is the impasse.

The US urged Lebanon’s political leadership to “move expeditiously to elect a president to unite the country and swiftly enact the reforms needed to rescue its economy from crisis”.

“Lebanon’s leaders must not put their personal interests and ambitions above the interests of their country and people,” it said.

While Lebanon is used to long delays in electing its president — it took two-and-a-half years for former army chief Mr Aoun to secure enough support — the vacuum is unprecedented.

Prime Minister Najib Mikati’s cabinet is in a caretaker status and severely stripped of its power. The state is also nowhere near to meeting the required conditions for a bailout from the International Monetary Fund after reaching a preliminary agreement last spring.

“While it is for Lebanon’s elected leaders to form their own government, the United States believes Lebanon needs a president free of corruption who can unite the country, advocate for transparency and accountability, put the interests of Lebanon’s people first, move towards national unity, and implement critical economic reforms, chief among them those required to secure an IMF programme,” the State Department said.

MP Michel Moawad has at times been able to count on about a third of the 128-seat legislature for support in the presidential race. But that is well short of the threshold needed and his campaign appears to have stuttered to a halt.

He has been able to count on a faction of MPs largely opposed to Hezbollah, the Iran-backed armed group and political party that holds significant sway in the country.

Hezbollah and its Shiite ally the Amal Movement, led by Mr Berri, have announced their support for Suleiman Frangieh, whose grandfather served as president from 1970-76.

What is a robo-adviser?

Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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What drives subscription retailing?

Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.

The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.

The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.

The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.

UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.

That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.

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Updated: May 02, 2023, 10:02 AM