Al Shabaab fighters on parade in Somalia. AP
Al Shabaab fighters on parade in Somalia. AP
Al Shabaab fighters on parade in Somalia. AP
Al Shabaab fighters on parade in Somalia. AP

Four killed in Al Shabaab raid near Somalia capital


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At least four people were killed on Thursday when fighters from the Al Shabaab extremist group raided a town near Somalia's capital Mogadishu, police said.

The attack came with the troubled country in the grip of an escalating political crisis that pits the president against the prime minister.

The attackers, armed with machine guns, raided the town of Balcad, about 30 kilometres north of Mogadishu, police and witnesses said.

"The terrorists attacked Balcad early this morning, targeting government security checkpoints," police officer Abdullahi Mohamed told AFP.

"The situation [has] returned to normal now and the government forces are in full control."

Witnesses said the Al Shabaab fighters managed to enter some parts of the town, which is on a road linking Mogadishu to the rest of the country, before they were repelled.

President Mohamed Abdullahi Mohamed and Prime Minister Mohamed Hussein Roble are locked in a festering feud over long-delayed elections in the Horn of Africa nation.

The president, better known as Farmaajo, this week announced that he was suspending the premier, who in turn accused him of an "attempted coup".

Relations between the pair have long been frosty, with the latest developments raising fresh fears among international partners that the government could be distracted from its fight to quash the extremist insurgency.

Al Shabaab has been waging a violent campaign against the country's fragile government since 2007 but was driven out of Mogadishu in 2011 after an offensive by an African Union force.

But the Al Qaeda-linked insurgents retain control of vast rural areas of Somalia, from which they frequently launch deadly attacks in the capital and elsewhere against civilian, military and government targets.

The extremists last month claimed a deadly car bombing in the capital that killed eight people and injured a number of students.

The militants also claimed two attacks in September that together killed 17 people.

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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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Edited by Sahm Venter
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Updated: December 30, 2021, 3:17 PM