A disarming proposition


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As strange as it may seem, people in the business of selling weapons do so with far less regulation and oversight than their counterparts in the banana trade.

Agricultural products are subject to three international agreements, while transfers of conventional weapons, including attack helicopters, tanks, armoured vehicles, combat aircraft, artillery systems, missile launchers, light weapons and small arms - as well as the munitions needed to make them lethal - are not governed by any binding global treaty. And according to Amnesty International, one person dies every minute worldwide due to the resulting violence.

While all responsible governments regulate the trade in arms at the national level, the failure to establish a global apparatus for overseeing this Dh257 billion business means vast quantities of these weapons freely flow into conflict zones, where they are used by perpetrators of war crimes, torture and other serious human rights abuses, most notably in Bashar Al Assad's Syria.

Previous efforts to stem the flow of arms into such countries have failed to gain traction, but on March 18, UN delegates will gather in New York to resume talks that began - but faltered - last July to negotiate what campaigners hope will be a legally binding Arms Trade Treaty (ATT), the first of what will likely be many, many steps needed to effectively tackle the complex and pervasive problem of non-legitimate arms acquisition. The aim of the agreement is to establish standards for all cross-border transactions, legally requiring governments to review contracts to ensure that arms will not be used by human rights abusers, do not violate embargoes and are not illegally diverted.

However, there are serious obstacles to successfully negotiating the ATT, the biggest one being that support for the treaty must be unanimous.

Support from the US, by far the world's biggest exporter of conventional arms (40 per cent of the global total), is particularly crucial.

While the White House is in favour of the treaty in principle, providing that ammunition is exempted, it faces strong opposition from the powerful US gun lobby, which is against any regulatory progress in this area on the grounds that it could potentially infringe on the constitutionally protected right to bear arms. Although the American Bar Association insists there is no legal risk of this occurring because the treaty would apply only to international transfers, continuing pressure from gun groups could make a "yes" vote difficult to ratify in the US Senate.

In the event that delegates do reach a consensus and the "robust and comprehensive agreement that addresses the humanitarian impact of the poorly regulated trade in arms" called for by UN Secretary-General Ban Ki-moon is ratified by member states, major challenges, such as monitoring and enforcement, will remain.

How effective such a treaty will be in the short to medium term remains to be seen.

However, with sustained international support, it could at the very least provide a regulatory framework to build on, a nudge towards a more peaceful world in which the trade in weapons is as carefully monitored as that of tropical fruit.

pmuir@thenational.ae

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Key 2013/14 UAE Motorsport dates

October 4: Round One of Rotax Max Challenge, Al Ain (karting)

October 1: 1 Round One of the inaugural UAE Desert Championship (rally)

November 1-3: Abu Dhabi Grand Prix (Formula One)

November 28-30: Dubai International Rally

January 9-11: 24Hrs of Dubai (Touring Cars / Endurance)

March 21: Round 11 of Rotax Max Challenge, Muscat, Oman (karting)

April 4-10: Abu Dhabi Desert Challenge (Endurance)

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

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TCL INFO

Teams:
Punjabi Legends 
Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan

Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals

Ten tax points to be aware of in 2026

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

Fourth-round clashes for British players

- Andy Murray (1) v Benoit Paire, Centre Court (not before 4pm)

- Johanna Konta (6) v Caroline Garcia (21), Court 1 (4pm)

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