US National Security Adviser Mike Waltz wants to get to the bottom of how a journalist ended up in a group chat discussing strikes against the Houthis. Reuters
US National Security Adviser Mike Waltz wants to get to the bottom of how a journalist ended up in a group chat discussing strikes against the Houthis. Reuters
US National Security Adviser Mike Waltz wants to get to the bottom of how a journalist ended up in a group chat discussing strikes against the Houthis. Reuters
US National Security Adviser Mike Waltz wants to get to the bottom of how a journalist ended up in a group chat discussing strikes against the Houthis. Reuters


Spilling America’s security secrets is fine, as long as you're in the Trump cabinet


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March 25, 2025

In 2016, Donald Trump and the Republican establishment lost their collective mind when it emerged that Hillary Clinton, who was running for president on the Democratic ticket, had used a private server to store classified emails. For months, the story was one of the only topics mainstream US media would cover. Mr Trump, who went on to defeat his rival in that year's election, would talk incessantly about the emails and even encouraged supporters at his rallies to chant: “Lock her up.”

Here we are, nearly a decade later, and several of the same Republicans who were supposedly outraged by Ms Clinton's mishandling of classified information now find themselves in the middle of a scandal that is arguably just as damaging.

Defence Secretary Pete Hegseth, Vice President JD Vance, Secretary of State Marco Rubio and Director of National Intelligence Tulsi Gabbard were among those invited to a group conversation started on Signal by National Security Adviser Mike Waltz. The topic of the “Houthi PC small group” chat was the coming military strikes against the Iran-backed rebels in Yemen.

Using a commercial messaging app on a mobile phone to discuss war plans, instead of communicating through secure channels, is shockingly lax and raises several security concerns. But the real problem was that Mr Waltz had also invited the editor-in-chief of The Atlantic magazine, Jeffrey Goldberg, into the chat. Goldberg was initially sceptical the group was real, as he watched America's senior officials discuss imminent military strikes against the Houthis.

The saga appears to be a grievous case of sloppy operational security

The saga appears to be a grievous case of sloppy operational security, but any negative consequences have been limited because Goldberg declined to publish some of the most sensitive information, including the name of a CIA official. Instead of owning up to the mistake, the Trump administration, which views journalists as the “enemy of the people”, has predictably opted to attack the messenger.

“There's a lot of journalists in this city who have made big names for themselves, making up lies about this President,” Mr Waltz said. “This one in particular I've never met, don't know, never communicated with, and we are looking into and reviewing how the heck he got into this room.”

That shouldn't take too long to figure out, given it was Mr Waltz who invited the journalist into the chat, according to Goldberg. The White House has admitted that the chat was real, but claims it highlights a “deep and thoughtful co-ordination between senior officials”.

Mr Hegseth, a former Fox News host, shared war plans on the chat, Goldberg said. The editor did not publish these details, saying the information could be used to harm American military and intelligence personnel. Instead of acknowledging this deference to US intelligence tradecraft, Mr Hegseth also attacked Goldberg.

“You're talking about a deceitful and highly discredited so-called journalist who's made a profession of peddling hoaxes time and time again,” the head of the Pentagon said, just three days after his chief of staff issued a memo saying that defence personnel could face polygraph tests if they leak information.

Yet while at Fox in 2016, Mr Hegseth excoriated Ms Clinton for her handling of classified emails.

“The people we rely on to do dangerous and difficult things for us rely on one thing from us: that we will not reveal their identity, that we will not be reckless with the dangerous thing they are doing for us. That’s the national security implications of a private server that’s unsecured,” he said at the time.

As recounted by Goldberg, the Signal conversation also gives an eye-opening insight into the Trump administration's contempt for its supposed allies, including Europe and Egypt. At one point in the chat, “SM” – presumably Stephen Miller, Mr Trump's deputy chief of staff for policy – says that the US needs to make sure Europe and Egypt know what it wants “in return” for the strike against the Houthis. Mr Hegseth is even more direct.

“I fully share your loathing of European free-loading. It's pathetic,” Mr Hegseth told his Eurosceptic colleague Mr Vance.

Screengrab published by Atlantic editor-in-chief Jeffrey Goldberg.
Screengrab published by Atlantic editor-in-chief Jeffrey Goldberg.

Other chat participants included Mr Rubio, who in 2016 asserted that: “Nobody is above the law – not even Hillary Clinton, even though she thinks she is." John Ratcliffe, who is now CIA director, said in 2019 that: “Mishandling classified information is still a violation of the Espionage Act.”

As for Mr Trump, he has greeted the scandal with a shrug.

“It's just something that can happen. It can happen,” he said on Tuesday. “There is no perfect technology. The really good ones are very cumbersome, very hard to access.”

Mr Trump and several of his officials have also claimed that no classified information was shared on the chat. A preposterous assertion. If the exact timings and methods of an imminent military strike are not classified, I don't know what is.

“Classified information should never be discussed over an unclassified system,” Democratic Senator Mark Warner said at a hearing on Tuesday. “It's also mind-boggling that all these senior folks were on this line and nobody checked security hygiene 101, like the names on the group chat.”

In more normal times, one might expect a head or two to roll over an incident like this. But Mr Trump has no political opposition in Congress, has a fully pliant Republican Party and is betting his supporters won't care. Plus, he has long had his own issues with how he personally handles sensitive information – in 2023, he was accused of storing classified documents at his home in Mar-a-Lago, including in the shower rooms and toilets.

For now, at least, the message is clear: mishandling sensitive information is fine, as long as the Trump administration is doing it.

England squad

Moeen Ali, James Anderson, Jofra Archer, Jonny Bairstow, Dominic Bess, James Bracey, Stuart Broad, Rory Burns, Jos Buttler, Zak Crawley, Sam Curran, Joe Denly, Ben Foakes, Lewis Gregory, Keaton Jennings, Dan Lawrence, Jack Leach, Saqib Mahmood, Craig Overton, Jamie Overton, Matthew Parkinson, Ollie Pope, Ollie Robinson, Joe Root, Dom Sibley, Ben Stokes, Olly Stone, Amar Virdi, Chris Woakes, Mark Wood

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Engine: 3.7-litre V6
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Transmission: Seven-speed automatic
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Nayanthara: Beyond The Fairy Tale

Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni

Director: Amith Krishnan

Rating: 3.5/5

Generational responses to the pandemic

Devesh Mamtani from Century Financial believes the cash-hoarding tendency of each generation is influenced by what stage of the employment cycle they are in. He offers the following insights:

Baby boomers (those born before 1964): Owing to market uncertainty and the need to survive amid competition, many in this generation are looking for options to hoard more cash and increase their overall savings/investments towards risk-free assets.

Generation X (born between 1965 and 1980): Gen X is currently in its prime working years. With their personal and family finances taking a hit, Generation X is looking at multiple options, including taking out short-term loan facilities with competitive interest rates instead of dipping into their savings account.

Millennials (born between 1981 and 1996): This market situation is giving them a valuable lesson about investing early. Many millennials who had previously not saved or invested are looking to start doing so now.

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

RESULTS

Bantamweight title:
Vinicius de Oliveira (BRA) bt Xavier Alaoui (MAR)
(KO round 2)
Catchweight 68kg:
Sean Soriano (USA) bt Noad Lahat (ISR)
(TKO round 1)
Middleweight:
Denis Tiuliulin (RUS) bt Juscelino Ferreira (BRA)
(TKO round 1)
Lightweight:
Anas Siraj Mounir (MAR) bt Joachim Tollefsen (DEN)
(Unanimous decision)
Catchweight 68kg:
Austin Arnett (USA) bt Daniel Vega (MEX)
(TKO round 3)
Lightweight:
Carrington Banks (USA) bt Marcio Andrade (BRA)
(Unanimous decision)
Catchweight 58kg:
Corinne Laframboise (CAN) bt Malin Hermansson (SWE)
(Submission round 2)
Bantamweight:
Jalal Al Daaja (CAN) bt Juares Dea (CMR)
(Split decision)
Middleweight:
Mohamad Osseili (LEB) bt Ivan Slynko (UKR)
(TKO round 1)
Featherweight:
Tarun Grigoryan (ARM) bt Islam Makhamadjanov (UZB)
(Unanimous decision)
Catchweight 54kg:
Mariagiovanna Vai (ITA) bt Daniella Shutov (ISR)
(Submission round 1)
Middleweight:
Joan Arastey (ESP) bt Omran Chaaban (LEB)
(Unanimous decision)
Welterweight:
Bruno Carvalho (POR) bt Souhil Tahiri (ALG)
(TKO)

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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

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World Cup warm up matches

May 24 Pakistan v Afghanistan, Bristol; Sri Lanka v South Africa, Cardiff

May 25 England v Australia, Southampton; India v New Zealand, The Oval

May 26 South Africa v West Indies, Bristol; Pakistan v Bangladesh, Cardiff

May 27 Australia v Sri Lanka, Southampton; England v Afghanistan, The Oval

May 28 West Indies v New Zealand, Bristol; Bangladesh v India, Cardiff

Updated: March 26, 2025, 5:44 AM