WikiLeaks helps the Taliban to hunt an honest man


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The WikiLeaks affair has dropped quickly from the global news agenda. But the fallout continues in ways which don't receive much attention. Last weekend, an Afghan friend who lives in Kabul was in Dubai for a short break to get away from the Taliban death threats which he has been receiving regularly ever since the leaked war logs revealed some of the projects he was working on with the US military.

I won't elaborate on what he does. He is an educated man who believes in a modern and moderate state. He has a wife, two small children and elderly parents to support. He is convinced that the publication of thousands of documents exposed him because he has never had such security problems before. During the first couple of phone calls, the caller told him to quit his job. "Why do you work with the foreign infidels? Join the jihad with us."

The second phone call was more threatening. "We know where you work and what your car looks like," the man said, then gave a detailed description of his vehicle. My friend moved his office and varies his route and schedule when he goes to work. Working for the US military is not his first choice but job opportunities are so few in Afghanistan you earn your money where you can. In the last phone call the man was more explicit. "Next time we see you, you will be killed."

Now every time a car pulls up next to him at a traffic light my friend wonders if this is the end. That civilians are bearing the brunt of the war is finally being studied carefully. This week, two organisations, the United Nations and the respected Afghan Independent Human Rights Commission, released reports which broadly said the same thing. Civilian casualties have risen in the first half of 2010 anywhere from 6 to 30 per cent compared to the same period last year.

What is interesting is who is responsible for the killings. Of the 1,325 civilian deaths recorded by the Afghan human rights group, 23 per cent were attributed to Nato or Afghan government forces. The Taliban and their allies were responsible for 68 per cent of the deaths. The UN study claimed the civilian death toll was slightly lower at 1,271 with anti-government forces blamed for 76 per cent of the casualties.

Chronicling precise figures is extremely difficult because most parts of the country are inaccessible. Crucially, both studies suggested that the proportion of deaths attributed to Nato and Afghan government forces were down compared to last year because of fewer air strikes. This is important because clumsy air strikes on innocent villages and unfair raids on their houses has been driving a lot of Afghans to pick up arms on behalf of insurgents.

The policy of Gen Stanley McChrystal, the former head of US and Nato command who issued a directive in July 2009 restricting the use of air power, may be bearing fruit. The reaction of his successor Gen David Petraeus was interesting in the wake of the WikiLeaks scandal. He said absolutely nothing, then on August 4 publicised a directive to his commanders in the field that they must "redouble" efforts to protect civilians in battle.

This despite months of grumbling from some quarters that new restrictions were putting American lives at risk. Insurgents sometimes use houses or people as shields and Nato soldiers are held to a standard their enemies do not recognise. But the directives are part of the counter-insurgency strategy, the core of which says the population must be protected and insurgents isolated. The fact that the Taliban are killing more people than Nato forces isn't likely to make my Afghan friend feel any better. But the counter-insurgency strategy may be the right one in the absence of any better choices.

Nato's generals must be hoping insurgents will overplay their hand and Afghans will tire of the suicide bombings and roadside mines which affect them disproportionately. Gen Petraeus will have to hold his nerve against enormous political pressure from Washington and various European capitals to give up on what appears to be a lost cause and start bringing home soldiers. For my friend who knows the insurgents are waiting for a chance to kill him, it would be the very worst outcome.

@Email:hghafour@thenational.ae

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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

If you go

The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road. 

The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
 

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Where: du Arena, Abu Dhabi

When: Saturday November 24

Rating: 4/5

How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
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Emergency phone numbers in the UAE

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

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The flights: South African Airways flies from Dubai International Airport with a stop in Johannesburg, with prices starting from around Dh4,000 return. Emirates can get you there with a stop in Lusaka from around Dh4,600 return.
The details: Visas are available for 247 Zambian kwacha or US$20 (Dh73) per person on arrival at Livingstone Airport. Single entry into Victoria Falls for international visitors costs 371 kwacha or $30 (Dh110). Microlight flights are available through Batoka Sky, with 15-minute flights costing 2,265 kwacha (Dh680).
Accommodation: The Royal Livingstone Victoria Falls Hotel by Anantara is an ideal place to stay, within walking distance of the falls and right on the Zambezi River. Rooms here start from 6,635 kwacha (Dh2,398) per night, including breakfast, taxes and Wi-Fi. Water arrivals cost from 587 kwacha (Dh212) per person.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”