• Race winner and 2021 F1 world champion Max Verstappen and his Red Bull Racing team celebrate on the podium after the Abu Dhabi Grand Prix at Yas Marina Circuit on December 12, 2021. Victor Besa / The National
    Race winner and 2021 F1 world champion Max Verstappen and his Red Bull Racing team celebrate on the podium after the Abu Dhabi Grand Prix at Yas Marina Circuit on December 12, 2021. Victor Besa / The National
  • Verstappen fought off Lewis Hamilton in a nail-biting finish. Victor Besa / The National
    Verstappen fought off Lewis Hamilton in a nail-biting finish. Victor Besa / The National
  • Verstappen runs to celebrate with his team. Victor Besa / The National
    Verstappen runs to celebrate with his team. Victor Besa / The National
  • The Dutch driver clinched the race and the championship on the final lap. Victor Besa / The National
    The Dutch driver clinched the race and the championship on the final lap. Victor Besa / The National
  • Race fans cheer as Verstappen wins. Victor Besa / The National
    Race fans cheer as Verstappen wins. Victor Besa / The National
  • Verstappen enjoys that winning feeling. Reuters
    Verstappen enjoys that winning feeling. Reuters
  • Verstappen drinks in the moment as Mercedes driver Lewis Hamilton looks dejected after finishing second. Reuters
    Verstappen drinks in the moment as Mercedes driver Lewis Hamilton looks dejected after finishing second. Reuters
  • Verstappen and Hamilton go head to head on the track. Victor Besa / The National
    Verstappen and Hamilton go head to head on the track. Victor Besa / The National
  • An Etihad Airways flyover before the race. The airline sponsored the Abu Dhabi Grand Prix. Victor Besa / The National
    An Etihad Airways flyover before the race. The airline sponsored the Abu Dhabi Grand Prix. Victor Besa / The National
  • Verstappen in action. Victor Besa / The National
    Verstappen in action. Victor Besa / The National
  • Hamilton took an early lead. Victor Besa / The National
    Hamilton took an early lead. Victor Besa / The National
  • Verstappen and Hamilton led the championship going into the final race. Victor Besa / The National
    Verstappen and Hamilton led the championship going into the final race. Victor Besa / The National
  • The start of the race. Reuters
    The start of the race. Reuters
  • Drivers pose for their end-of-season picture before the Abu Dhabi Grand Prix. AP
    Drivers pose for their end-of-season picture before the Abu Dhabi Grand Prix. AP
  • Aston Martin's Sebastian Vettel before the race. Reuters
    Aston Martin's Sebastian Vettel before the race. Reuters
  • Fans of Verstappen and Hamilton before the race. Reuters
    Fans of Verstappen and Hamilton before the race. Reuters
  • Hamilton looks relaxed before the race. Reuters
    Hamilton looks relaxed before the race. Reuters
  • Verstappen looks like he means business. Reuters
    Verstappen looks like he means business. Reuters
  • Hamilton soaks up the early atmosphere. Victor Besa / The National
    Hamilton soaks up the early atmosphere. Victor Besa / The National
  • Mercedes driver Valtteri Bottas with his girlfriend Tiffany Cromwell. Victor Besa / The National
    Mercedes driver Valtteri Bottas with his girlfriend Tiffany Cromwell. Victor Besa / The National
  • Verstappen arrives at the circuit with his girlfriend Kelly Piquet. Reuters
    Verstappen arrives at the circuit with his girlfriend Kelly Piquet. Reuters
  • Hamilton on the Yas Marina Circuit. AFP
    Hamilton on the Yas Marina Circuit. AFP

Mercedes withdraw Abu Dhabi Grand Prix result appeal


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Mercedes have withdrawn their appeal against the outcome of Sunday’s title-deciding Formula One Abu Dhabi Grand Prix.

The team said they had made the decision following “constructive dialogue” with governing body FIA with regard to establishing clarity for future scenarios.

Mercedes said in a statement: “The Mercedes-AMG Petronas team will actively work with this commission to build a better Formula 1 – for every team and every fan who loves this sport as much as we do.

“We will hold the FIA accountable for this process and we hereby withdraw our appeal.”

Sunday’s season-ending race in Abu Dhabi saw Red Bull’s Verstappen claim victory and the title after the deployment of a late safety car led to the Dutchman being placed right behind Mercedes rival Lewis Hamilton, who he then overtook on the final lap.

Mercedes had an immediate double appeal dismissed by the stewards, then lodged an intention to appeal against that decision, which they were required to trigger by Thursday evening.

Mercedes added in the statement: “We appealed in the interest of sporting fairness, and we have since been in a constructive dialogue with the FIA and Formula One to create clarity for the future, so that all competitors know the rules under which they are racing, and how they will be enforced.

“Thus, we welcome the decision by the FIA to install a commission to thoroughly analyse what happened in Abu Dhabi and to improve the robustness of the rules, governance and decision-making in Formula One.

“We also welcome that they have invited the teams and drivers to take part.

"We left Abu Dhabi in disbelief of what we had just witnessed. Of course, it's part of the game to lose a race, but it's something different when you lose faith in racing.

"Together with Lewis, we have deliberated carefully over how to respond to the events... we have always been guided by our love of this sport and we believe that every competition should be won on merit.

"In the race on Sunday many felt, us included, that the way things unfolded was not right."

"To Max Verstappen and Red Bull Racing: we would like to express our sincere respect for your achievements this season," the team added.

"You made this Formula One championship title fight truly epic. Max, we congratulate you and your entire team. We look forward to taking the fight to you on the track next season."

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

Updated: December 16, 2021, 10:57 AM