Israel is preparing to activate an offshore gas field near its disputed maritime border with Lebanon, aiming to boost energy exports to Europe but risking further tensions with its northern neighbour. AFP
Israel is preparing to activate an offshore gas field near its disputed maritime border with Lebanon, aiming to boost energy exports to Europe but risking further tensions with its northern neighbour. AFP
Israel is preparing to activate an offshore gas field near its disputed maritime border with Lebanon, aiming to boost energy exports to Europe but risking further tensions with its northern neighbour. AFP
Israel is preparing to activate an offshore gas field near its disputed maritime border with Lebanon, aiming to boost energy exports to Europe but risking further tensions with its northern neighbour.

Israel-Lebanon maritime border offer to be delivered by end of the week


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A written offer concerning maritime border demarcation between Lebanon and Israel will be presented to Lebanese officials by the end of the week, Lebanon's presidency said on Monday.

Deputy parliament speaker Elias Bou Saab was in New York last week for talks with Amos Hochstein, the Israeli-born US diplomat mediating the maritime demarcation between the two countries, and briefed President Michel Aoun on the outcome, the presidency tweeted.

A source close to the negotiations underscored that a written offer would not constitute a formal agreement.

"It's not a formal agreement. We are just expecting to receive Hochstein's written proposal for the border delineation," the source said, adding the offer would finalise what was previously a verbal proposal.

"The Lebanese side gets a copy and the Israeli side gets an identical copy," the source said. If both sides agree to the terms of the offer they would then hold an indirect meeting in Ras el Naqoura ― the international border crossing between Lebanon and Israel ― to finalise details through US mediation.

Maritime border talks between Lebanon and Israel have proceeded at a distinctly faster pace since June, when tensions rose over an Israeli-contracted gas drilling ship's arrival near a disputed gas field. The talks had previously been stalled since last year.

The presence of the ship escalated tensions between the two enemy nations — technically at war since 1948. Upon the drilling rig's arrival at Karish, the Iran-backed Hezbollah group ― a Lebanese political party and paramilitary group designated as a terrorist organisation by the US, threatened to launch an attack if Israel extracted from the field before an agreement had been signed.

US, Lebanese and Israeli officials have for weeks heralded hopes that an agreement between Lebanon and Israel could be reached within days, following Mr Hochstein's speedy visit to the region in early September during which he met with Lebanese officials.

In an exclusive interview with The National, caretaker foreign minister of Lebanon Abdullah Bou Habib last week said a maritime deal had reached its final stages and confirmed that Hezbollah would neither block nor support a maritime deal between Lebanon and Israel.

“Hezbollah has no issue whatsoever with any agreement we reach as a state, I heard it from them and others did too,” Mr Bou Habib told The National last week.

But Lebanon's caretaker Prime Minister Najib Mikati shared a more reserved stance last week in an interview with London-based newspaper Asharq Al Awsat.

The border file is "not final yet," he told the newspaper.

Since a maritime dispute between Lebanon and Israel began in 2007, various rounds of US-mediated negotiations have taken place ― all falling short of a signed agreement.

The maritime dispute involves an 860-square-kilometre section of the eastern Mediterranean which is thought to be an area rich in hydrocarbons.

Israel seeks to partially fill the global energy gap left by Russia's war in Ukraine.

Lebanon hopes the discovery of hydrocarbons on its side of the border would contribute to its desperately needed economic recovery.

Since 2019, Lebanon has suffered one of the most severe economic crises to hit the world since the mid-19th century.

The UN says about 80 per cent of the previously upper-middle-income nation’s population has slipped into poverty.

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Also on December 7 to 9, the third edition of the Gulf Car Festival (www.gulfcarfestival.com) will take over Dubai Festival City Mall, a new venue for the event. Last year's festival brought together about 900 cars worth more than Dh300 million from across the Emirates and wider Gulf region – and that first figure is set to swell by several hundred this time around, with between 1,000 and 1,200 cars expected. The first day is themed around American muscle; the second centres on supercars, exotics, European cars and classics; and the final day will major in JDM (Japanese domestic market) cars, tuned vehicles and trucks. Individuals and car clubs can register their vehicles, although the festival isn’t all static displays, with stunt drifting, a rev battle, car pulls and a burnout competition.

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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Updated: September 26, 2022, 4:12 PM