Russian and Chinese bombers stage joint patrol near Alaska


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Russian and Chinese aircraft carried out a joint patrol over far eastern Russia and the Bering Sea near Alaska, in what the Pentagon called the first such joint operation of its kind.

The patrol, which took place on Wednesday and involved nuclear-capable bombers, came shortly after Moscow said the US had sent its strategic aircraft close to Russian airspace.

"[Russian] Tu-95MS strategic missile carriers and the Chinese air force's Xian H-6 strategic bombers carried out an aerial patrol over the Chukchi and Bering Seas and the north Pacific Ocean," Moscow said.

US Defence Secretary Lloyd Austin told journalists on Thursday: "This was not a surprise to us. We closely monitored these aircraft, tracked the aircraft, intercepted the aircraft."

"This is the first time that we've seen these two countries fly together like that," Mr Austin said.

But he said the aircraft did not enter US airspace, with their closest approach being about 320km from the coast.

Norad, the joint US-Canadian North American Aerospace Defence Command, announced on Wednesday that American and Canadian warplanes had intercepted two Russian and two Chinese bombers in international airspace near Alaska.

It said the bombers "remained in international airspace" and were "not seen as a threat".

Moscow said the patrol observed international law and did not breach foreign airspace.

"At certain stages of the route, the aviation group was accompanied by fighter jets of foreign countries," it said.

The patrol was part of "a plan of military co-operation for 2024 and not directed against third countries", Moscow said.

The Chinese Defence Ministry also said that the patrol was "not aimed at a third party" and "has nothing to do with the current international and regional situation".

A Chinese H-6K bomber accompanied by Russian Sukhoi Su-30CM jets. Photo: Russian Defence Ministry via Reuters
A Chinese H-6K bomber accompanied by Russian Sukhoi Su-30CM jets. Photo: Russian Defence Ministry via Reuters
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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: July 25, 2024, 7:27 PM