Australia's new prime minister Tony Abbott lays a wreath of flowers at Kalibata Heroes' Cemetery in Jakarta. Romeo Gacad / AFP
Australia's new prime minister Tony Abbott lays a wreath of flowers at Kalibata Heroes' Cemetery in Jakarta. Romeo Gacad / AFP
Australia's new prime minister Tony Abbott lays a wreath of flowers at Kalibata Heroes' Cemetery in Jakarta. Romeo Gacad / AFP
Australia's new prime minister Tony Abbott lays a wreath of flowers at Kalibata Heroes' Cemetery in Jakarta. Romeo Gacad / AFP

Australian PM’s visit to Indonesia overshadowed by asylum seeker deaths


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Immigration talks

Visit comes amid rising death toll from asylum boat tragedy

JAKARTA // The Australian prime minister arrived in Indonesia yesterday for his first trip abroad since taking office – a visit overshadowed by immigration issues.

These include the climbing death toll from the latest boat tragedy involving Australia-bound asylum seekers.

Tony Abbott’s trip comes three days after the vessel packed with refugees from the Middle East sank in Indonesian waters, killing 36 and leaving dozens of others missing.

Before leaving Sydney yesterday, Mr Abbott stressed the importance of the relationship between the neighbouring countries, which according to his office have two-way trade valued at A$14.6 billion (Dh50bn) a year.

“While Indonesia may not yet be our most important economic or security relationship, it is in many respects our most important relationship,” Mr Abbott said.

“We will be covering a range of matters because this is an important relationship and it’s important to get it right at the start of this new government.”

Mr Abbott was expected to meet one-on-one with the Indonesian president, Susilo Bambang Yudhoyono, yesterday.

He is accompanied on the two-day trip by his country’s foreign minister, Julie Bishop, the trade minister, Andrew Robb, and 20 senior businesspeople.

Border issues have been a long-time headache shared by the two countries.

Indonesia, with its thousands of islands and lack of maritime resources, is often used as a transit point by asylum seekers desperate to reach Australia’s Christmas Island in the hopes of starting a better life.

Thousands board rickety fishing boats every year to make the often deadly journey, which typically crosses about 340 kilometres of open sea.

Mr Abbott won the September 7 election on the promise that he would stop the boats of asylum seekers.

Indonesia has expressed concern over his “tow-back” plan, which involves the Australian navy intercepting and forcing back Indonesian fishing boats crowded with asylum seekers.

The Indonesian foreign minister, Marty Natalegawa, has warned that the move could breach the country’s sovereignty.

Australia’s immigration minister, Scott Morrison, yesterday maintained his government’s policy of refusing to say whether any boat had been turned back to Indonesia since the new administration took control on September 18.

“I’m not going to comment on operational issues at sea that compromise current and future operations,” Mr Morrison said.

He added that the new government had not changed how Australia responded to search and rescue emergencies.

On Friday, a boat thought to be carrying more than 100 asylum seekers from the Middle East, many from Lebanon, sank off the province of West Java’s Sukabumi district after being hit by high waves.

The search continued yesterday for dozens believed missing after 35 survivors were rescued. The exact number of people aboard the boat was unknown.

Seven more bodies were found late on Sunday and yesterday, bringing the death toll to 36, said Capt Warsono, police chief of Agrabinta in the district of Cianjur.

Separately, Australian navy boats rescued 80 asylum seekers and crew from two sinking boats last week. The passengers were travelling from Indonesia to Australia and were handed over to Indonesian authorities, said Mark Binskin, an air marshal with the Australian military.

Another four boats reached Australian waters last week, he said.

* Associated Press

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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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