Live updates: Follow the latest news on Israel-Gaza
UN Secretary General Antonio Guterres on Sunday said “swift action” had been taken against a group of Palestine relief agency workers after they were accused of involvement in the October 7 Hamas attack against Israel.
Mr Guterres also warned that the UN Relief and Works Agency is about to run out of money for its work in Gaza after the US and other countries cut funding following the allegations.
“The UN is taking swift action ... Of the 12 people implicated, nine were immediately identified and terminated by the Commissioner General of UNRWA, Philippe Lazzarini; one is confirmed dead, and the identity of the two others is being clarified,” Mr Guterres said in a statement.
“Any UN employee involved in acts of terror will be held accountable, including through criminal prosecution”
The US, the largest donor to the UN Relief and Works Agency, said it was halting further funding after the agency announced on Friday that several of its employees had allegedly taken part in the deadly attacks on Israel that sparked the war. Several other major donors on Saturday followed suit, including Canada, the UK, Italy and Australia.
Two million civilians in Gaza depend on UNRWA aid for daily survival, Mr Guterres added, but warned that the agency's current funding will not allow it to meet all requirements to support them in February.
“While I understand their concerns – I was myself horrified by these accusations – I strongly appeal to the governments that have suspended their contributions to, at least, guarantee the continuity of UNRWA’s operations,” he said.
Mr Lazzarini on Saturday pleaded to the countries that have suspended funding to reconsider their decisions.
“It is shocking to see a suspension of funds to the agency in reaction to allegations against a small group of staff, especially given the immediate action that UNRWA took by terminating their contracts and asking for a transparent independent investigation,” he said.
Israeli Foreign Minister Israel Katz called on Mr Lazzarini to quit.
“Mr Lazzarini please resign,” Mr Katz said on X in response to a post by the UNRWA chief warning that funding cuts meant the agency's operation in Gaza was about to collapse.
UNRWA faced funding challenges even before the Gaza war, with financial strains worsening when former US president Donald Trump cut funding in 2018.
However, the Biden administration reinstated full support in 2022 with a $344 million contribution, making the US its top donor.
Packages which the US Secret Service said contained possible explosive devices were sent to:
- Former first lady Hillary Clinton
- Former US president Barack Obama
- Philanthropist and businessman George Soros
- Former CIA director John Brennan at CNN's New York bureau
- Former Attorney General Eric Holder (delivered to former DNC chair Debbie Wasserman Schultz)
- California Congresswoman Maxine Waters (two devices)
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Zayed Sustainability Prize
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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
