A tug vessel puts out a fire on the Gaza Freedom Flotilla vessel Conscience, outside Maltese territorial waters. Reuters
A tug vessel puts out a fire on the Gaza Freedom Flotilla vessel Conscience, outside Maltese territorial waters. Reuters
A tug vessel puts out a fire on the Gaza Freedom Flotilla vessel Conscience, outside Maltese territorial waters. Reuters
A tug vessel puts out a fire on the Gaza Freedom Flotilla vessel Conscience, outside Maltese territorial waters. Reuters

All on board Gaza Freedom Flotilla safe after attack, Maltese government says


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All the people on board a Gaza aid flotilla are safe after the vessel was hit by drones in international waters off Malta in the early hours of Friday.

"The vessel had 12 crew members on board and four civilian passengers. No casualties were reported," the Maltese government said, adding that a nearby tug had been directed to assist the vessel.

"By 2.13am, all crew were confirmed safe but refused to board the tug. The ship remains outside territorial waters and is being monitored by the competent authorities."

The humanitarian operation was organised by a coalition of 12 rights groups who aim to deliver aid to Gaza. The Freedom Flotilla Coaltion said on social media that it issued a distress call following the attack shortly after midnight local time.

"The front of the vessel was targeted twice, resulting in a fire and a breach in the hull," it said in the post accompanied by a video showing flames and smoke rising from the ship.

It did not attribute blame for the incident. The National could not independently verify the video.

Turkey's foreign ministry said Turkish nationals were on board at the time of the incident and it was working with Maltese authorities to transfer them to a safe location.

"We condemn in the strongest terms this attack on a civilian ship," it said, noting that there were "allegations that the ship was targeted by Israeli drones".

"All necessary efforts will be made to reveal the details of the attack as soon as possible and to bring the perpetrators to justice," it said.

The coalition claimed that the Maltese government had not responded to the distress call. It urged the country to abide by its obligations under international maritime law.

Activists involved in the campaign have previously said that, under international law, they should not be subject to curbs by any government while delivering aid.

The flotilla's press officer told CNN that 30 people were on board the ship carrying aid to Gaza. The coalition says on its website that it is an international network of pro-Palestinian activists who seek to deliver aid to the war-ravaged enclave amid an Israeli blockade by taking non-violent action.

In 2010, the Israeli army raided a flotilla, killing 10 passengers.

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: May 03, 2025, 5:49 AM