Turkish police officers wearing face masks, with the Hagia Sophia in the background, patrol at Sultanahmet Square. Reuters
Turkish police officers wearing face masks, with the Hagia Sophia in the background, patrol at Sultanahmet Square. Reuters
Turkish police officers wearing face masks, with the Hagia Sophia in the background, patrol at Sultanahmet Square. Reuters
Turkish police officers wearing face masks, with the Hagia Sophia in the background, patrol at Sultanahmet Square. Reuters

Turkey should come clean on its Covid-19 figures


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On Wednesday, the Turkish Health Minister, Fahrettin Koca, announced that his country is experiencing a second peak in its Covid-19 outbreak. Turkey, he acknowledged, is seeing its daily case numbers jump to levels not recorded since mid-May, while fatalities are edging closer to figures that the government released in mid-June. Figures released by the federal government last Saturday night, for instance, showed 1,549 new cases and 39 deaths in the preceding 24 hours.

Second waves and second peaks are to be expected in any country’s experience with this pandemic. The strain of coronavirus that is now causing so much mayhem in the world is highly infectious, difficult to detect without rigorous and widespread testing and presents varying symptoms inconsistently. This is what makes transparency in data and public-health messaging particularly important in the effort to overcome it.

Last Saturday, however, at a virtual meeting of opposition figures, Mansur Yavas, the mayor of Turkey’s capital, Ankara, made a curious observation. On August 18, he noted, city officials in Ankara had recorded 17 coronavirus deaths. The same day, the Turkish federal government reported 22 across the entire country.

The mayor of Istanbul, Ekrem Imamoglu, pointed out at the same meeting that the contemporary data on case numbers for Istanbul “is almost equal with the Turkey data.” He finished his statement with a caveat. “The data that is being given,” he said.

Both mayors, who lead Turkey’s two largest cities, suspect that the Turkish government is significantly under-reporting its case numbers and, by extension, attempting to downplay the impact of the pandemic. Their contentions are reinforced by similar assertions made by local medics’ chambers across Turkey, who say that hospitals are filling up with more cases than official counts suggest.

In many countries where coronavirus cases are assumed to be under-reported, the issue is a lack of widespread testing. Turkey, however, is conducting close to 100,000 tests per day, and testing conducted by city officials is part of what makes the two mayors so suspicious.

Death statistics (from all causes, including, but not limited to coronavirus) in Turkey's major cities show that the government may have been misleading the public on the actual cases in the country as far back as the spring. From March to April, Istanbul recorded 2,100 more deaths than expected based on data from previous years. This was more deaths than the national government recorded for the whole of Turkey at that time. Furthermore, a report in the Lancet said that the Turkish Ministry of Health announced "a mandatory application for permission for research on Covid-19", a move branded as unconstitutional.

Doctors raising the alarm on Covid-19 have been intimidated by authorities. Medical associations in Mardin and Van have been accused of "creating fear and panic among the public". Last month, the Turkish Medical Association issued a warning that there are 10 times more cases than announced by the Ministry of Health.

All of this begs the question, why is Turkey attempting a misinformation campaign at all? The country has the resources, health infrastructure and testing campaigns in place to steer itself through the pandemic. And there is much at stake for the wider region: Turkey shares borders with Iraq and Syria, which are particularly hard hit, and it hosts millions of Syrian and other refugees, who are particularly vulnerable. As one of the largest and wealthiest nations in the region, Turkey ought to be an example of putting public health before short-sighted political interests. Instead, there are widespread concerns about the government's handling of information and statistics.

As Mr Yavas has noted, “What benefit is there to under-reporting the numbers?”

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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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