President Masoud Pezeshkian has sacked a senior Iranian official over an expensive holiday to Antarctica, Iran's news agency said on Saturday.
Shahram Dabiri, the president's deputy for parliamentary affairs, was seen in a photo posted on social media, alongside a woman identified as his wife, standing near the Plancius cruise ship, which caused outrage in Iran.
The Dutch-flagged vessel has offered luxury expeditions to Antarctica since 2009, with one agency pricing an eight-day trip at €3,885 ($4,528) a person. Iran is in a state of economic crisis and hyperinflation.
"In a context where economic pressure on the population remains high … expensive leisure trips by officials, even if paid out of their own pocket, are neither defensible nor justifiable,” the Iranian President wrote in a letter published on Saturday by the official IRNA news agency, which noted that Mr Dabiri was dismissed.
"In a decree on Saturday, President Masoud Pezeshkian said the leisure trip to Antarctica, while the Iranian people are grappling with intense economic pressures, contravenes the administration’s campaign pledge of sincerity and justice,” said the news agency.
Mr Dabiri, a 64-year-old physician by profession and a close confidant of Mr Pezeshkian, had been appointed to the post in August.
The government faced intense criticism after the photo was published, and several of Mr Pezeshkian's supporters urged him to remove the official.
IRNA late last month cited a source in Mr Dabiri's office as saying that he had made the trip before he held a government position.
The controversy is a blow for Mr Pezeshkian, who was elected last year on a promise to revive the economy and improve the daily lives of his fellow citizens.
In early March, his economy minister Abdolnasser Hemmati was dismissed by parliament amid a sharp depreciation of the national currency against the dollar and soaring inflation.
With reporting from agencies
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
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Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
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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
