Hezbollah fighters raise the group's flags during the funeral of two of its members who were killed in an Israeli strike on April 17. AFP
Hezbollah fighters raise the group's flags during the funeral of two of its members who were killed in an Israeli strike on April 17. AFP
Hezbollah fighters raise the group's flags during the funeral of two of its members who were killed in an Israeli strike on April 17. AFP
Hezbollah fighters raise the group's flags during the funeral of two of its members who were killed in an Israeli strike on April 17. AFP

Hezbollah rejects 'ridiculous' Israeli claim to have killed half its commanders in south


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Hezbollah, which is engaged in daily cross-border exchanges of fire along the Lebanon-Israel frontier, has denied Israel's claim to have eliminated half of the militant group's commanders in southern Lebanon.

The group rejected the “ridiculous words that aim to uplift the morale of the Israeli soldiers who received painful blows in the Arab Al Aramshe and north of Acre”, a Hezbollah source told The National on Wednesday, referring to the latest attacks by the Iran-backed group.

Hezbollah has recently escalated attacks against its arch enemy Israel, amid heightened tensions in the Middle East after Iran's unprecedented assault on Israeli soil.

Last week, a Hezbollah attack on Arab Al Aramshe, a Bedouin border village in northern Israel, injured at least 13 Israeli soldiers, the highest number of casualties in a single attack in the conflict, and killed one other.

On Tuesday, the group conducted drone attacks on two Israeli military bases north of the city of Acre. This was Hezbollah's deepest attack into Israel since hostilities broke out on October 8.

Israeli Defence Minister Yoav Gallant on Wednesday said Israeli forces were carrying out “offensive action” across southern Lebanon, in what seems to be retaliation for the Acre attack.

“Half of the Hezbollah commanders in south Lebanon have been eliminated … and half of them are in hiding and abandon south Lebanon to Israeli military operations,” Mr Gallant added, speaking at the Northern Command in Safed.

The Hezbollah source said: “Our martyrs are known and we are mourning them publicly in front of our people. We do not hide their names, as the enemy does to hide its real losses before public opinion and before the world. Therefore, this statement is completely worthless."

A strike on Tuesday killed Hussein Ali Azkoul, who Israeli forces said was an operative in Hezbollah's aerial defence unit in southern Lebanon, and previously claimed to have killed commanders from the group's elite Radwan Force, including Ali Ahmad Hussein this month and Wissam Tawil in January.

Hezbollah fighters carry the coffins of Hezbollah commander Ismail Baz, left, and another fighter who were killed by an Israeli drone strike, during a funeral procession in Chehabiyeh, south Lebanon. AP
Hezbollah fighters carry the coffins of Hezbollah commander Ismail Baz, left, and another fighter who were killed by an Israeli drone strike, during a funeral procession in Chehabiyeh, south Lebanon. AP

In a separate statement on Wednesday, the Israeli army said it had struck 40 Hezbollah targets in southern Lebanon.

It said it had carried out a wave of strikes on Hezbollah targets around Ayta Ash Shab as “part of the effort to destroy the organisation’s infrastructure in the border area”.

Since October 7, at least 380 people have been killed in Lebanon, mostly Hezbollah members, but also 72 civilians, according to an AFP tally.

Israel, which does not systematically disclose figures, says 11 soldiers and eight civilians have been killed on its side of the border.

Hezbollah and Israel's exchange of fire have been largely confined to the border area – although Israel has on occasion launched strikes deeper inside Lebanon, sparking concerns of an all-out war between the two sides.

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: April 25, 2024, 6:16 AM