Sebastien Lecornu, France's Minister of the Armed Forces, on Wednesday sought to reaffirm his country's commitment to Lebanon. AFP
Sebastien Lecornu, France's Minister of the Armed Forces, on Wednesday sought to reaffirm his country's commitment to Lebanon. AFP
Sebastien Lecornu, France's Minister of the Armed Forces, on Wednesday sought to reaffirm his country's commitment to Lebanon. AFP
Sebastien Lecornu, France's Minister of the Armed Forces, on Wednesday sought to reaffirm his country's commitment to Lebanon. AFP

French armed forces minister visits Lebanon amid conflict at border with Israel


Nada Maucourant Atallah
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France's Minister of the Armed Forces, Sebastien Lecornu, arrived in Lebanon on Wednesday for meetings with officials, including caretaker Prime Minister Najib Mikati.

He is scheduled to visit a UN peacekeeping base on Thursday, where France is a major contributor. The UN Interim Force in Lebanon (Unifil) strongly condemned attacks on its troops after its headquarters in the coastal town of Naqoura and other bases were hit.

Mr Lecornu said he aims to reaffirm France's “commitment to the stability of Lebanon”.

The visit comes amid escalating violence at Lebanon's southern border between Israel and Iran-backed Hezbollah since the start of the war in Gaza war.

The Israeli army and Hezbollah have exchanged fire daily for more than three weeks. While the deadly clashes have primarily been restricted to a few border towns, there is concern that the slightest miscalculation could escalate into a full-scale war.

France, with its historical colonial ties to Lebanon, maintains substantial influence within the nation's political and cultural landscape.

Since the beginning of the war, several demonstrations have taken place outside the French embassy in Beirut to protest against Israel's bombardment of Gaza and denounce the French government's unwavering support for Israel.

French President Emmanuel Macron warned “the Iranian regime” and its regional allies, including “Hezbollah and the Houthis in Yemen,” not to “recklessly open new fronts”, during joint press conferences with Israeli President Isaac Herzog and Prime Minister Benjamin Netanyahu on October 24.

He warned against “regional conflagration in which everyone would emerge as a loser”, stressing that Paris had already “sent several messages to Hezbollah to warn them against getting involved in the Gaza war”.

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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: November 02, 2023, 9:53 AM