Workers on a crane put up Nato posters on Saturday ahead of the alliance's summit in Madrid. AP Photo
Workers on a crane put up Nato posters on Saturday ahead of the alliance's summit in Madrid. AP Photo
Workers on a crane put up Nato posters on Saturday ahead of the alliance's summit in Madrid. AP Photo
Workers on a crane put up Nato posters on Saturday ahead of the alliance's summit in Madrid. AP Photo


Nato is ripe for reform, but can Madrid begin the process?


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June 27, 2022

An exchange between a Ukrainian researcher and a former high-ranking US official at an event in London last week highlighted how far the Nato alliance must still travel to respond to the Russian war.

The Ukraine expert had travelled from the Donbas where she had heard her country’s troops crying out for the weapons systems that the western countries have pledged to Kyiv’s defence. As the Russian artillery rained down, the Ukrainians took the view that the shipments were not happening fast enough. The former US official conceded the point that, while the commitment was welcome, it shouldn't be a case of "too little, too late".

Nato is not at war with Russia. In fact none of its members are at war with Russia either. But Ukraine has gained support from within the alliance since the start of the Russian war in February. Notably last week, it also saw its application to join the EU accepted. This is something that had stalled for years as Ukraine failed to make the anti-corruption reforms and other improvements that accompany any application.

The push within EU for strategic autonomy could come in part through a unified defence policy

Significantly, given the role that the application played in the lead-up to the last war in 2014, Russian President Vladimir Putin said he had no objections to it because the EU is not a military alliance. The offer of Nato membership is less forthcoming to Ukraine. But as the 30-member grouping meets for a landmark summit in Madrid later this week, Nato is the reference point for how the defence of the continent will play out.

As the link between the US and Europe, the shock to the latter's security was always going to play out in Nato’s court. With the Europeans themselves assessing that it will take until 2040 before the region can defend itself from external aggression, this is a long-term issue – not a one- or two-year passing phase.

If the arms don’t go fast enough to Ukraine, the prestige of the alliance will certainly suffer a blow. If the unity of purpose shown in the months since February unwinds, this will all be a lost opportunity.

Presidents and prime ministers have the opportunity to look at the defensive alliance in a new way and ask if there should be a systematic approach to raising the capabilities of friendly countries. Getting the arms to states deemed to be just as vulnerable as Ukraine before trouble strikes is an important consideration in allowing those places to have their own deterrence.

Polls show that more than 90 per cent of Americans hold a negative view of Mr Putin. Other polls conducted across Europe show support for Ukraine and its struggle well above 50 per cent everywhere – between 70 per cent in Poland to 58 per cent in Spain. Contrast that with a poll taken in Russia, where a majority backs the invasion and provides support for the Kremlin’s narratives.

Within Nato the spirit of unity is high, but these are early days. Not only is the test of the energy and food crises still creeping up on its members, but so too are critical choices in the defence sphere.

Germany's Angela Merkel, Turkey's Recep Tayyip Erdogan, Donald Trump of the US and France's President Emmanuel Macron at the 2019 Nato summit. Reuters
Germany's Angela Merkel, Turkey's Recep Tayyip Erdogan, Donald Trump of the US and France's President Emmanuel Macron at the 2019 Nato summit. Reuters

This week, Nato will reveal its strategic concept. In 1997, the Nato summit in Madrid set the stage for the group's enlargement. When the last strategic concept came out in 2009, Russia was still being categorised as a strategic partner. At the closing of a 20-year cycle, a new blueprint for the alliance is clearly needed.

The growing push within EU states for strategic autonomy could come in part through a unified defence policy.

One of the most important preparatory meetings that Nato Secretary General Jens Stoltenberg held was with French President Emmanuel Macron last week. Mr Macron probed how the strategic concept could incorporate EU ambitions. The Elysee Palace can no longer afford to talk about the Nato alliance being "brain dead". Now it says it has suffered an “electric shock” and is demanding answers.

America’s pivot to Asia is certainly not dead. Indeed its move to seal Aukus, a strategic rearmament agreement with the UK and Australia, shows that it is ambitious in the platforms it seeks. For now, the Europeans are not actively challenging the US over China in the way that was true two years ago. They may be seeking to end their cheap energy relationship with Russia, but they are not altering their trade-focused relationship with Beijing.

Nato’s efforts to flesh out a strategic outlook that straddles those interests is going to be a key test of its thinking next week. How it implements that approach and sticks to it when it is inevitably tested is one of the greatest challenges facing the alliance.

With the US mid-term election looming and the short run-up to the next presidential election, Nato is hostage to another concern. Europeans are broadly convinced that Donald Trump stands a good chance of being elected US president in 2024. What chance of the alliance holding together, then, is probably best described as slim to nil.

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

The Brutalist

Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

Race card

5pm: Maiden (PA) Dh80,000 (Turf) 1,600m
5.30pm: Handicap (PA) Dh80,000 (T) 1,600m
6pm: Arabian Triple Crown Round-1 Listed (PA) Dh230,000 (T) 1,600m
6.30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,400m
7pm: Maiden (PA) Dh80,000 (T) 1,200m
7.30pm: Handicap (TB) Dh100,000 (T) 2,400m

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Singham Again

Director: Rohit Shetty

Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone

Rating: 3/5

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants

Korean Film Festival 2019 line-up

Innocent Witness, June 26 at 7pm

On Your Wedding Day, June 27 at 7pm

The Great Battle, June 27 at 9pm

The Witch: Part 1. The Subversion, June 28 at 4pm

Romang, June 28 at 6pm

Mal Mo E: The Secret Mission, June 28 at 8pm

Underdog, June 29 at 2pm

Nearby Sky, June 29 at 4pm

A Resistance, June 29 at 6pm 

 

MATCH INFO

Uefa Champions League semi-final, first leg

Tottenham 0-1 Ajax, Tuesday

Second leg

Ajax v Tottenham, Wednesday, May 8, 11pm

Game is on BeIN Sports

Company%20profile
%3Cp%3EName%3A%20Tabby%3Cbr%3EFounded%3A%20August%202019%3B%20platform%20went%20live%20in%20February%202020%3Cbr%3EFounder%2FCEO%3A%20Hosam%20Arab%2C%20co-founder%3A%20Daniil%20Barkalov%3Cbr%3EBased%3A%20Dubai%2C%20UAE%3Cbr%3ESector%3A%20Payments%3Cbr%3ESize%3A%2040-50%20employees%3Cbr%3EStage%3A%20Series%20A%3Cbr%3EInvestors%3A%20Arbor%20Ventures%2C%20Mubadala%20Capital%2C%20Wamda%20Capital%2C%20STV%2C%20Raed%20Ventures%2C%20Global%20Founders%20Capital%2C%20JIMCO%2C%20Global%20Ventures%2C%20Venture%20Souq%2C%20Outliers%20VC%2C%20MSA%20Capital%2C%20HOF%20and%20AB%20Accelerator.%3Cbr%3E%3C%2Fp%3E%0A
Remaining Fixtures

Wednesday: West Indies v Scotland
Thursday: UAE v Zimbabwe
Friday: Afghanistan v Ireland
Sunday: Final

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

Profile of Tarabut Gateway

Founder: Abdulla Almoayed

Based: UAE

Founded: 2017

Number of employees: 35

Sector: FinTech

Raised: $13 million

Backers: Berlin-based venture capital company Target Global, Kingsway, CE Ventures, Entrée Capital, Zamil Investment Group, Global Ventures, Almoayed Technologies and Mad’a Investment.

Leap of Faith

Michael J Mazarr

Public Affairs

Dh67
 

TEACHERS' PAY - WHAT YOU NEED TO KNOW

Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:

- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools

- average salary across curriculums and skill levels is about Dh10,000, recruiters say

- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance

- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs

- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills

- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month

- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

Zidane's managerial achievements

La Liga: 2016/17
Spanish Super Cup: 2017
Uefa Champions League: 2015/16, 2016/17, 2017/18
Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017

Updated: June 27, 2022, 4:00 AM