Iranian container ship 'Shahr e Kord' at Haydarpasa port in Istanbul, Turkey, in 2019. Reuters
Iranian container ship 'Shahr e Kord' at Haydarpasa port in Istanbul, Turkey, in 2019. Reuters
Iranian container ship 'Shahr e Kord' at Haydarpasa port in Istanbul, Turkey, in 2019. Reuters
Iranian container ship 'Shahr e Kord' at Haydarpasa port in Istanbul, Turkey, in 2019. Reuters

Iran claims ship was attacked in Mediterranean, following Gulf of Oman incident


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An Iranian shipping company said on Friday that one of its vessels was targeted this week in a "terrorist attack" using an explosive device in the Mediterranean Sea.

The alleged incident came less than two weeks after Tel Aviv had accused Tehran of being behind an attack on an Israeli-owned ship in the Gulf of Oman. Iran has denied this.

The cargo ship Iran Shahr e Kord – which is owned by the Islamic Republic of Iran Shipping Lines group (IRISL) – was en route from Iran to Europe when its hull was hit by "an explosive device" on Wednesday, group spokesman Ali Ghiasian was quoted on state television as saying.

Mr Ghiasian called the incident a "terrorist action and an example of maritime piracy".

"A small fire started where the explosion had ocurred, but it was quickly extinguished ... and none of the crew were hurt," he said.

"Legal proceedings will be taken to identify the perpetrators through related international bodies," he added.

The company official did not disclose the ship's current location and cargo but said "it will continue its route after assessing and repairing the damage".

In a Thursday report quoting US and Middle East officials, The Wall Street Journal said that since late 2019, Israel has targeted at least a dozen vessels bound for Syria, mostly carrying Iranian oil.

Responding to a question on the Iranian claims, Israeli Defence Minister Benny Gantz said: "We do not comment on reports by foreign media.

"But we will continue to fight against the terrorism and everything that helps terrorism, including its sources of revenue."

IRISL was blacklisted by the US in mid-2020 over what the Department of State described as the transportation of items related to Iran's missile and nuclear programme.

Former US president Donald Trump withdrew Washington from a landmark nuclear deal with Iran and world powers in 2018 and re-imposed sanctions on the country.

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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

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