People protested against the government for raising bus fares in Brazil last year. Nelson Antoine / AP Photo
People protested against the government for raising bus fares in Brazil last year. Nelson Antoine / AP Photo
People protested against the government for raising bus fares in Brazil last year. Nelson Antoine / AP Photo
People protested against the government for raising bus fares in Brazil last year. Nelson Antoine / AP Photo

2014 World Cup: Brazil a country of two halves


Andy Mitten
  • English
  • Arabic

More than 100 Corinthians supporters used wire cutters to break into their club’s Sao Paulo training ground on Saturday.

World champions just over a year ago, they have not been happy with the poor form of their players and sought to confront them face-to-face. They achieved their aim and one grabbed the throat of striker Paolo Guerrero, the Peruvian who had scored to make them world champions against Chelsea in Yokohama.

Police and security were called, but fans refused to leave for two hours until they had threatened several players and the coach. The Corinthians president, Mario Gobbi, said his employees were frightened to go to work.

Brazilian football crowds have long been passionate; their hooligan groups have also been violent. Incidents remain isolated, but they make headlines and Brazilians are finding headlines get things done.

When Sao Paulo state imposed a 10 per cent rise on bus fares in June 2013, it caused protests that quickly spread far away from South America’s biggest city of 20 million.

With Brazil staging the Confederations Cup – a test event for the World Cup – the protests made global news.

Initially peaceful, they found support from Brazil’s normally conformist and fast-growing middle class. Most have cars and do not ride buses, but they are unhappy at other issues from security to health, poor education, a high tax burden and poor infrastructure.

Building hugely expensive – and over budget – football stadiums for the World Cup was hardly seen as a priority either, and the protests acted as a catalyst for their frustrations. The protest movement grew, but then lost the confidence of the middle ground and started to decline when anarchist groups became more violent.

“The protests helped,” Manchester United’s Brazilian defender Rafael da Silva says. “The leaders in Brazil know that they have to change. They’ve seen the people in the streets. Before, the leaders did what they wanted. Now they have to listen if there’s a million people on the street protesting. Already there have been changes.”

Brazil’s government were shocked into making changes, with president Dilma Rousseff proposing a referendum on political reform and pledging US$25 billion (Dh91.8bn) on public transport improvements. There have been smaller protests since, leading to fears that more social unrest will mar the finals.

“If there are problems, they will be away from the stadiums,” says Diego Forlan, the Uruguayan striker who has played in Brazil for the past two years. He thinks the tournament will be a success.

“I’ve read about cities not having enough hotels and protests planned because the people know the world will be watching. But visitors will be welcomed in Brazil and it’s an incredibly varied country, socially. If I fly four hours north of here, I’ll still be in Brazil. If I fly four hours south of Manchester, I’ll be in Africa. Are the people in the Sahara the same as in Manchester? The people in the north and south of Brazil are different, too.”

But tensions remain high and the inequalities are acute. Last week, I stood by the door of Leblon Shopping as thirty private security guards vetted customers walking towards high-end designer stores. They feared protests. In Sao Paulo, outside an upscale Iguatemi mall, protesters carried a banner stating, in English: “In the World Cup country, malls forbid entrance of black and poor people.”

There is no such policy, but the perception among the protesters is that one exists.

Another protest in Sao Paulo on January 25 saw 2,500 people complain about the costs of staging the World Cup. They marched through the streets chanting: “There will be no cup.”

“We feel cheated,” said Eloy Roberto, a retired printer from Rio Grande do Sul. “We don’t trust the government. We’re paying first-world taxes for third-world levels of service and an infrastructure which will be embarrassing when the rest of the world looks at it during the World Cup finals.”

Yet, the majority of Brazilians are looking forward to the World Cup finals.

“The Brazilian people want the World Cup to be a success,” says Pedro Wilson Silveira, 39, a Rio businessman. “The Brazilian people will give passion and they love football, but the competition also gives protesters a chance to be heard by the world in an election year. Protests are probable and I can understand the frustrations.

“Of course we should have a better health and education system, but these aren’t anything to do with staging the World Cup.

“There are many reasons that are nothing to do with a football competition or the Olympic Games in Rio.”

He foresees only benefits.

“The World Cup will raise Brazil’s profile. Tourists will be more interested in visiting cities like Rio, a special place which should have a global profile like London or New York. I can’t wait,” he says.

sports@thenational.ae

Brief scoreline:

Manchester United 2

Rashford 28', Martial 72'

Watford 1

Doucoure 90'

Need to know

When: October 17 until November 10

Cost: Entry is free but some events require prior registration

Where: Various locations including National Theatre (Abu Dhabi), Abu Dhabi Cultural Center, Zayed University Promenade, Beach Rotana (Abu Dhabi), Vox Cinemas at Yas Mall, Sharjah Youth Center

What: The Korea Festival will feature art exhibitions, a B-boy dance show, a mini K-pop concert, traditional dance and music performances, food tastings, a beauty seminar, and more.

For more information: www.koreafestivaluae.com

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

UAE jiu-jitsu squad

Men: Hamad Nawad and Khalid Al Balushi (56kg), Omar Al Fadhli and Saeed Al Mazroui (62kg), Taleb Al Kirbi and Humaid Al Kaabi (69kg), Mohammed Al Qubaisi and Saud Al Hammadi (70kg), Khalfan Belhol and Mohammad Haitham Radhi (85kg), Faisal Al Ketbi and Zayed Al Kaabi (94kg)

Women: Wadima Al Yafei and Mahra Al Hanaei (49kg), Bashayer Al Matrooshi and Hessa Al Shamsi (62kg)

%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Nag%20Ashwin%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EPrabhas%2C%20Saswata%20Chatterjee%2C%20Deepika%20Padukone%2C%20Amitabh%20Bachchan%2C%20Shobhana%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E%E2%98%85%E2%98%85%E2%98%85%E2%98%85%3C%2Fp%3E%0A
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

Skoda Superb Specs

Engine: 2-litre TSI petrol

Power: 190hp

Torque: 320Nm

Price: From Dh147,000

Available: Now