The plague of deforestation in the Amazon forest. AFP
The plague of deforestation in the Amazon forest. AFP
The plague of deforestation in the Amazon forest. AFP
The plague of deforestation in the Amazon forest. AFP

Lives are at stake in climate change battle


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Climate change is destroying our planet and at a much faster rate than once expected. The UN's Intergovernmental Panel on Climate Change recently released a report that warned of increased risks of food and water shortages due to climate change. If we do not act now, half a billion people living in areas prone to desertification will lose the arable lands they rely on for income and sustenance. This increases their risk of displacement and famine. In 2017 alone, the Norwegian Refugee Council's internal displacement monitoring centre estimated 18.8 million people had to flee their homes because of weather-related disasters.

This worrying trend affects us all. The month of July was the hottest ever recorded on Earth, with heatwaves sweeping across Europe and causing temperatures to climb to more than 40°C. We all have a part to play in saving the environment. One solution is to adopt eco-friendly habits such as using reusable bags instead of plastic ones and buying products with minimal packaging. We must also be mindful of our carbon footprint and consider what aspects of our everyday lives could be causing harm to our precious planet.

But individual actions must be propped up by better national policies for maximum efficiency. In Nigeria, lands that were once fertile are turning to desert. This has caused local herders and farmers to violently clash over the region's dwindling resources, claiming more than 10,000 lives in the past decade. The threat of desertification also looms over the Arabia Peninsula. In the UAE, plans are under way to preserve the country's peatlands and mangroves, which naturally absorb carbon dioxide, a greenhouse gas that contributes to global warming. In June, Abu Dhabi spearheaded the global conversation by hosting the UN's Climate Meeting, a precursor to next month's UN climate change conference in New York.

Such initiatives must be encouraged as climate change is not an isolated problem attributable to a single factor or country. In 2015, 195 countries, including the UAE, signed up to the Paris agreement and vowed to limit temperature increases worldwide to 1.5°C. Yet two years ago, the US withdrew from the accord, despite being the world’s second largest emitter of greenhouse gases and the IPCC has warned if we continue our current habits, global temperatures will rise to 3°C above pre-industrial levels by 2100. The UN’s latest report is a reminder that the clock is ticking on the greatest crisis of our time. Governments, international bodies and individuals have a responsibility to work together to fight climate change before it is too late.

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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

The biog

Name: Abeer Al Bah

Born: 1972

Husband: Emirati lawyer Salem Bin Sahoo, since 1992

Children: Soud, born 1993, lawyer; Obaid, born 1994, deceased; four other boys and one girl, three months old

Education: BA in Elementary Education, worked for five years in a Dubai school