An old friendship leaves Turkey no choices on Syria


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Turkey's limited retaliation against Syria, following the deaths of five civilians hit by a Syrian mortar round on Wednesday in a Turkish border town, has not substantially changed the dynamic of relations between Damascus and Ankara. However, it is clear that Turkey, which had previously refrained from responding militarily to mortar shells that fell into its territory, has changed its policy to a degree. It is now responding to any violation of its border with commensurate artillery fire.

Still, both Turkey and Syria are anxious to avoid a direct military conflict; as tragic as the death of the civilians was, these incidents originating from Syria appear to have been the result of stray shelling. The Syrian army is engaged in a bitter civil war, and it is almost to be expected that overstretched military units will be committing an increasing number of errors.

President Bashar Al Assad must know that provoking the Turks into a significant military intervention would risk shifting the balance of power within Syria in favour of the Free Syrian Army rebels. His own overstretched army would have to deal with both the FSA and the Turkish military. Mr Al Assad might think that Turkish intervention could cause Syrians to rally around the flag, or trigger a wave of regional Arab nationalism, but this is extremely unlikely in light of more than 30,000 Syrians killed since protests began last year.

Ankara, on the other hand, is also reticent to intervene militarily. The Turkish public is decidedly against a war, as recent polls have demonstrated. This would hold true even if the UN Security Council passed a resolution calling for intervention.

Any major armed intervention would be far too expensive in terms of materiel, casualties and the actual financial cost. The Turkish government has been pressing the United States to impose a no-fly zone because it knows it does not have the wherewithal to do this on its own.

The Syrian air defence network can be suppressed, but only at a significant cost. It would entail the loss of aircraft and, as formidable as the Turkish military may appear to be, it has little if any real combat experience against such defences.

Prime Minister Recep Tayyip Erdogan is in a difficult situation. He ratcheted up the rhetoric on Mr Al Assad and Syria a year ago and allowed the FSA to use Turkish territory as a base of operations while Saudis and Qataris supplied the rebels with arms and other materiel. But Mr Erdogan did not come up with this policy based on a whim.

His first preference was for Mr Al Assad to remain in power; the two men had established very strong bonds, including family ties, and Turkey had protected the Assad regime against western pressure in the years after the 2005 assassination of Lebanon's former prime minister Rafik Hariri.

By his own admission, Turkey's Foreign Minister Ahmet Davutoglu has travelled to Damascus more than 60 times, including many trips that were solely intended to help Mr Al Assad to weather the storm of protests. These trips were to no avail as Mr Al Assad refused to heed Turkish advice, even suggestions about cosmetic reforms such as organising sham elections.

The Turks expected - partially because of an exaggerated sense of self-confidence - that once Ankara turned against Mr Al Assad, his regime would crumble relatively quickly. A year ago, Turkish officials, just like many of their western counterparts, thought that the Assad regime would be gone within six months.

A year later, Mr Erdogan does not have much to show for his Syrian approach. He is the spearhead of a coalition of the unwilling that wants Mr Al Assad to go but will not commit the troops to the endeavour. This does not, however, mean that Mr Erdogan was wrong - then or now. He had little choice but to oppose Mr Al Assad after the massacres and the growing refugee problem.

The fact that Turkey borders Syria - and that Mr Al Assad and Mr Erdogan had established a cozy relationship - forced Ankara's hand.

That said, Mr Erdogan's rhetoric, often the result of emotional outbursts and not well-thought policy positions, has undermined Turkey's effectiveness. Mr Erdogan is often ahead of the policy-making process, which creates a problem for Turkey. His words result in policy, and not the other way around.

The danger in the current row over the cross-border shelling is that, once again, Mr Erdogan may lose control of his own rhetoric. An escalation in the war of words - aided and abetted by a jingoistic Turkish press - could lead to an escalation on the ground.

What the Turkish government really hopes is that the United States and Nato will intervene if the crisis escalates, and do the job for Ankara. But the United States will not intervene, now or after the elections, unless there is irrefutable proof of genocide. So Turkey, like everyone else, has to hunker down for a prolonged conflict, although one that will ultimately result in Mr Al Assad's fall.

Henri J Barkey is a professor of international relations at Lehigh University in Pennsylvania

On Twitter: @hbarkey

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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

Top investing tips for UAE residents in 2021

Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.

Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.

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Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.

Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”

Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI. 

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