People could be forgiven for thinking the world’s diplomats have been having a rather fruitless year. Almost three months into 2022, none of the world’s wars have ended and a new one has begun. Those responsible for pushing parties to peace often come up against old habits of intransigence, as well as a lack of public interest. War and angry rhetoric capture imagination and attention, but multilateral sessions and dialogues do not.
Much of what diplomats discuss cannot even be aired in the open – so fragile are the potential gains from compromise. But when they are achieved, they can seem near miraculous.
News yesterday that Armenia and Turkey might be close to normalising relations is a good example, and proof that even what appear to be the most intractable of issues, can be solved.
Few bilateral relationships have been as complex during the past century. Rooted in an extremely painful and contested history, simmering tensions exploded into outright war in 2020 in Nagorno-Karabakh, when Armenian and Turkish-backed Azerbaijani forces fought over the ethnic Armenian province that broke away from Baku during the early 1990s. Five thousand soldiers are thought to have died, as well as hundreds of civilians. Turkish-supplied drones, which are now being used in Ukraine, were instrumental in Azerbaijan's relatively swift but deadly victory.
For Armenians, who were already struggling with economic malaise and political turmoil at home – similar to their Turkish neighbours – losing another piece of territory to ethnic Turks brought up historical reminders of their horrific, deadly persecution and flight from the ruins of the Ottoman Empire in the beginning of the 20th century.
In spite of all this, both sides appear to be rising above the tumult and choosing peace. According to what Armenian Foreign Minister Ararat Mirzoyan told the Turkish state-run Anadolu news agency on Tuesday, Yerevan and Ankara are not only close to establishing diplomatic relations, but also opening the more than 300-kilometre border between both. It would be a significant commercial boost that both struggling economies need, and a victory not just on the bilateral and regional level – the Caucuses is often described as an even more complicated, fraught version of the Balkans – but globally, bucking what appears to be the growing weakness of international diplomacy.
Constant vigilance will be required to keep up momentum if relations are established. It will not be easy. Faltering truces and geopolitical balancing acts from the Balkans to the Middle East, driven by bitter camps at home and nefarious foreign influence, are a reminder that peace requires constant work to prevent a descent into blinkered nationalism.
By accepting this mission and the intense work it will require, Armenia and Turkey are choosing in many ways the harder and longer, but infinitely more responsible path of peace. By not allowing the past to be an impediment in the present, they are acknowledging that what is done is done, but what is yet to come can be shaped by officials and society to boost common prosperity. As is so often a feature of the most bitter historic rivalries, both sides actually have much in common. Healing historic bitterness might still be a long way off, but with both sides talking and trading, it is one important step closer.
The biog
Favourite Emirati dish: Fish machboos
Favourite spice: Cumin
Family: mother, three sisters, three brothers and a two-year-old daughter
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
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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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What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
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