Protesters in Tunis on Sunday after President Kais Saied replaced the Supreme Judicial Council. AFP
Protesters in Tunis on Sunday after President Kais Saied replaced the Supreme Judicial Council. AFP
Protesters in Tunis on Sunday after President Kais Saied replaced the Supreme Judicial Council. AFP
Protesters in Tunis on Sunday after President Kais Saied replaced the Supreme Judicial Council. AFP

Kais Saied replaces Tunisia's top judicial body


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Thousands of Tunisians protested on Sunday after President Kais Saied officially replaced the country's judicial watchdog and gave himself powers to sack judges and ban them from going on strike.

Hours after Mr Saied's decree was published on Sunday morning, more than 2,000 protesters gathered in central Tunis, many waving flags and chanting slogans in support of an independent judiciary.

“Freedom! Freedom! The police state is finished,” some chanted.

It is forbidden for judges of all ranks to go on strike or hold any organised collective action that could disturb or delay the normal working of the courts
Presidential decree

Mr Saied's decree came a week after he said he would dissolve the Supreme Judicial Council, prompting a nationwide shutdown of courts by judges who said the move would infringe on judicial independence.

The decree, establishing a new 21-member “Temporary Supreme Judicial Council” — nine of whom are appointed by the president — also gives him powers to dismiss “any judge failing to do his professional duties".

“It is forbidden for judges of all ranks to go on strike or hold any organised collective action that could disturb or delay the normal working of the courts,” the decree reads.

Mr Saied last July sacked the government, suspended Parliament and seized a range of powers before moving to rule by decree, sparking fears for the country's democratic system established after autocratic president Zine El Abidine Ben Ali was ousted in 2011.

The president had long accused the judicial council of blocking politically sensitive investigations and being influenced by the Islamist-inspired Ennahda party.

He has insisted he has no intention of interfering with the judiciary, but rights groups and world powers have criticised his move.

On Thursday, the council said in a statement that it “totally rejects the use of decrees to infringe on the constitutional structure of the judiciary” and that any alternative would have no legal basis.

Mr Saied's actions in July were welcomed by many Tunisians tired of political parties seen as corrupt and self-serving, but his critics accuse him of moving the country back towards autocracy.

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Name: HyperSpace
 
Started: 2020
 
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Sector: Entertainment 
 
Number of staff: 210 
 
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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

Updated: February 14, 2022, 7:54 AM