The GT3 is the sportiest of the 16 variants of the Porsche 911 sold in the US market. Ingo Wagner / EPA
The GT3 is the sportiest of the 16 variants of the Porsche 911 sold in the US market. Ingo Wagner / EPA
The GT3 is the sportiest of the 16 variants of the Porsche 911 sold in the US market. Ingo Wagner / EPA
The GT3 is the sportiest of the 16 variants of the Porsche 911 sold in the US market. Ingo Wagner / EPA

Porsche recalls new 911 model due to engine fire risk


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Porsche, the German maker of luxury sports cars, said Wednesday it is recalling all 911 GT3 models built this year due to risk of possible engine fire.

Porsche said in a statement that it will replace the engines of all 785 of the high-priced 911 GT3 sports cars built in 2014.

No other models or series were affected by the recall, which was in response to two engine fires, the statement said.

“In order to rule out every possible risk for customers,” Porsche has instructed owners to park their cars and have them picked up by their nearest dealer.

The action was taken after Porsche said it investigated two engine fires in which a loosened fastener caused oil to leak, which then caught fire. In the two fires, in Italy and in Switzerland, no one was injured, a Porsche official said.

Porsche is cooperating with US regulators in the recall and engine replacements, and is in touch with each customer who owns one of the affected vehicles, the Porsche official said.

Porsche did not say how much it will cost to replace the 785 engines. The new engines will have “optimised fasteners,” the company said.

The GT3 is the sportiest of the 16 variants of the Porsche 911 sold in the US market. The GT3 is often driven by their owners on race tracks.

Of the 785 GT3 models that will have engines replaced, about 400 were shipped to the United States, and about half of those have been sold, a Porsche official said.

Other 911 models and variants are not affected.

The two-seat sports car has a base price of about US$131,000 in the United States and about €137,000 in Europe.

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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