Israel's Iron Dome anti-missile system intercepts rockets from Iran on Tuesday. Israel has vowed to carry out 'powerful strikes' across the region in revenge. Reuters
Israel's Iron Dome anti-missile system intercepts rockets from Iran on Tuesday. Israel has vowed to carry out 'powerful strikes' across the region in revenge. Reuters
Israel's Iron Dome anti-missile system intercepts rockets from Iran on Tuesday. Israel has vowed to carry out 'powerful strikes' across the region in revenge. Reuters
Israel's Iron Dome anti-missile system intercepts rockets from Iran on Tuesday. Israel has vowed to carry out 'powerful strikes' across the region in revenge. Reuters


The Middle East can't afford Iran and Israel's brinkmanship


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  • Arabic

October 03, 2024

This is a dangerous and unpredictable moment in the Middle East. The long-running conflict between Israel and Iran – hitherto fought largely through proxy forces and stealth operations – has moved into the open. On Monday night Israel began a ground invasion of Lebanon, and within 24 hours Iranian missiles rained on Israeli population centres as well as military installations in the Negev. More than at any other time in the past year, a multi-front, full-scale regional war appears possible.

Israel has vowed to carry out “powerful strikes” across the region in revenge, with Israeli Prime Minister Benjamin Netanyahu saying: “Iran made a big mistake tonight – and it will pay for it.”

The leaderships of Iran and Israel may think they are playing a highly calibrated game of brinksmanship. Indeed, some have interpreted the Iranian missile attacks as a face-saving exercise following Israel’s deadly strikes on Tehran’s allies – Hezbollah in Lebanon, and the Houthis in Yemen. But communicating by launching missiles and drones across neighbouring countries’ airspace has the potential not just to cost lives, but to spark an uncontrollable conflict.

The consequences of miscalculation are profound, and other countries in the region are right to be alarmed. A Jordanian government spokesman on Tuesday insisted that the kingdom – whose military took down several Iranian missiles in its airspace – must not become an “arena for conflict”.

Mistakes during hostilities can and do happen. In January 2020, two Iranian surface-to-air missiles brought down a civilian airliner shortly after it took off from Tehran’s Imam Khomeini International Airport amid tensions between Iranian and US forces following the assassination of Iranian commander Qassem Suleimani five days earlier. In July 1998, 290 people lost their lives when a US warship fired on Iran Air Flight 655 as it flew above the Arabian Gulf. Despite advancements in modern military technology, the dangers posed by air strikes and missile launches to non-combatants are obvious. On Tuesday, Eurocontrol – a pan-European air traffic control agency – announced the closure of Jordanian and Iraqi airspace, and the closure of a key crossing point into airspace controlled by Cyprus.

As long as communication between regional protagonists is conducted with military hardware, the chance of the wrong message being received is too great

There may be back channels of communication via third parties that can mitigate this level of conflict or prevent a worst-case scenario. But that will be cold comfort to the millions of people across this region whose futures currently lie in the hands of a handful of political and military decision makers in Iran and Israel. That some of these leading figures have repeatedly broken international law in Gaza and Lebanon, fomented conflict across the region or shown scant interest in de-escalation should worry all those tired of living on their nerves in an increasingly volatile Middle East.

There are several diplomatic exits from this cycle of attack and retaliation. Many in the international community would be willing to help defuse these tensions, with a starting point being an immediate ceasefire in Gaza and Lebanon. But as long as communication between regional protagonists is conducted with military hardware, the chance of the wrong message being received is too great.

AUSTRALIA SQUAD

Steve Smith (capt), David Warner, Cameron Bancroft, Jackson Bird, Pat Cummins, Peter Handscomb, Josh Hazlewood, Usman Khawaja, Nathan Lyon, Shaun Marsh, Tim Paine, Chadd Sayers, Mitchell Starc.

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

RESULTS

6.30pm Handicap (TB) $68,000 (Dirt) 1,200m

Winner Canvassed, Par Dobbs (jockey), Doug Watson (trainer)

7.05pm Meydan Cup – Listed Handicap (TB) $88,000 (Turf) 2,810m

Winner Dubai Future, Frankie Dettori, Saeed bin Suroor

7.40pm UAE 2000 Guineas – Group 3 (TB) $125,000 (D) 1,600m

Winner Mouheeb, Ryan Curatolo, Nicholas Bachalard

8.15pm Firebreak Stakes – Group 3 (TB) $130,000 (D) 1,600m

Winner Secret Ambition, Tadhg O’Shea, Satish Seemar

9.50pm Meydan Classic – Conditions (TB) $$50,000 (T) 1,400m

Winner Topper Bill, Richard Mullen, Satish Seemar

9.25pm Dubai Sprint – Listed Handicap (TB) $88,000 (T) 1,200m

Winner Man Of Promise, William Buick, Charlie Appleby

Q&A with Dash Berlin

Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.

You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.

You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.

Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.

 

What is the definition of an SME?

SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.

A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors. 

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Updated: October 03, 2024, 3:09 AM