Pigeons released at Hiroshima Peace Memorial Park during the 79th Atomic Bombing Day anniversary in Hiroshima, western Japan, on August 6. Reuters
Pigeons released at Hiroshima Peace Memorial Park during the 79th Atomic Bombing Day anniversary in Hiroshima, western Japan, on August 6. Reuters
Pigeons released at Hiroshima Peace Memorial Park during the 79th Atomic Bombing Day anniversary in Hiroshima, western Japan, on August 6. Reuters
Pigeons released at Hiroshima Peace Memorial Park during the 79th Atomic Bombing Day anniversary in Hiroshima, western Japan, on August 6. Reuters


The spread of conflict in our world highlights the importance of arms control


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August 28, 2024

Nuclear arms control is one of the world’s greatest success stories, at least for now. The world’s nuclear stockpile shrank from an estimated 70,000 warheads in 1986 to about 12,000 today. But all that may be going in reverse. At the start of the Russian invasion of Ukraine in February 2022, Russia’s President Vladimir Putin refused to rule out the idea that nuclear weapons might at some point be used. This was assumed to mean “tactical” or “battlefield” nuclear weapons, but even this so far unrealised prospect sounds chilling.

By 2023 the “Doomsday Clock” of the Bulletin of Atomic Scientists was set at 90 seconds, the shortest it has ever been. Former British prime minister Gordon Brown, writing in a British newspaper issued his own uncharacteristically grim warning a few days ago: “At no time since the Cuban missile crisis of 1962 has the world looked so dangerous, nor has an end to its 56 conflicts, according to the Global Peace Index – the highest number since the Second World War – seemed so distant and so difficult to achieve.”

Even thinking of a nuclear strike anywhere, ever, would assure mutual destruction

In the US, it was revealed earlier this month that in March, US President Joe Biden approved a new top secret nuclear strategic plan called “Nuclear Employment Guidance”. Reports of the contents are – for obvious reasons – vague but the new strategy is said to include a focus on China’s expansion of its nuclear arsenal. It was also reported to involve preparations for the US to face nuclear challenges from China, Russia and North Korea simultaneously.

What we do know – according to American experts – is that of those 12,000 warheads currently in existence about 2,000 are said to be on “high alert”. That means in the event of conflict some of them could reach targets in fewer than 30 minutes.

Nine countries have nuclear weapons, including Israel, India and Pakistan. A handful of other countries have moved towards acquiring nuclear weapons technology, although that’s difficult to do clandestinely.

The old Cold War term about a nuclear arms race is Mad – mutually assured destruction. It dates from the 1960s and a strategist at America’s Hudson Institute, Donald Brennan. Mr Brennan pointed out that any attempt by one nuclear power to surprise an enemy with a “first strike” would result in immediate retaliation and a second strike that would destroy both powers and perhaps much of the planet, the northern hemisphere in particular.

In the 1980s there were various scary TV dramas involving a “nuclear winter” caused by massive amounts of debris in the atmosphere after a nuclear catastrophe. Back in the 1950s, American school children were taught to “duck and cover”, to hide under their desks if a nuclear air raid alarm sounded. It’s not clear what hiding under a desk might achieve, beyond terrifying children, their parents and teachers. Mr Brennan was correct to call the whole thing mad.

But perhaps there is another wave of madness in the world right now. There is so much conflict and hostility that we need to consider how best to extend arms control treaties.

Former US President Barack Obama in 2009 spoke optimistically of seeking “a world without nuclear weapons”. In 2022 Biden administration officials suggested more realistically that it might be possible to reduce the role of nuclear weapons in US strategy. As recently as last June, the US State Department insisted that “the New Start Treaty” to limit strategic nuclear weapons between the US and Russia would continue in force until February 2026.

Both sides were reported to be operating within the treaty’s agreed limits. Even so, the current souring of international relations by the Ukraine war, the weakness of international agencies including the UN and the pause in international diplomacy linked to political uncertainty about November’s US presidential elections, mean that it is reasonable to fear a growing level of nuclear anxiety. And so what can be done?

Well, it is always useful first to recognise that there is a problem. Continuing and extending arms control treaties would remove some of the fear, although treaties can be broken and monitoring demands a degree of trust. International organisations can monitor nuclear arsenals but realistically cannot enforce agreements. Yet it’s also important not to despair.

Rational governments under rational leaders do not want to destroy their own nations. Moreover, no matter how many peace-loving people might wish that nuclear weapons had never been invented, they are not about to be disinvented or banned. The best that we can hope for is that the Ukraine war, Gaza, and those dozens of other conflicts around the world do not tempt a desperate leader in a nuclear-capable power to become the first to use nuclear weapons since the 1945 American bombings of Hiroshima and Nagasaki.

In Japan, at the Hiroshima Peace Memorial, the Genbaku Dome looms like a ghost. It’s the only structure left standing in the area where the first atomic bomb exploded on 6 August 1945. There is a chilling emptiness about this memorial. That emptiness should remind us all that Mad really does mean mutually assured destruction. It is also a reminder we would be mad in its most literal sense to contemplate a nuclear strike anywhere, ever.

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Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

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: August 29, 2024, 10:12 AM