New Zealand cricketers celebrate after winning the second and final Test against Sri Lanka.
New Zealand cricketers celebrate after winning the second and final Test against Sri Lanka.
New Zealand cricketers celebrate after winning the second and final Test against Sri Lanka.
New Zealand cricketers celebrate after winning the second and final Test against Sri Lanka.

New Zealand draw series with Sri Lanka despite Mathews' last stand


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A defiant half-century from Angelo Mathews' proved to be in vain as Sri Lanka lost the second Test in Colombo to share their series against New Zealand 1-1.

Facing a notional target of 363, the hosts began the final day in trouble on 47 for four and though Mathews made 84, only Prasanna Jayawardene and Nuwan Kulasekara offered any worthwhile support.

Tim Southee and Trent Boult took three wickets apiece as New Zealand bowled their opponents out for 195 to win by 167 runs. Doug Bracewell added two for 13 off 13 overs, claiming the prize scalps of Kumar Sangakkara and Mahela Jayawardene.

Having won the first Test in Galle by 10 wickets, Sri Lanka were focused solely on not losing this second match to earn a 1-0 series win.

The early run-out of Thilan Samaraweera this morning left the score at 63 for five but Mathews and Prasanna Jayawardene survived the rest of the morning session.

The pair took their side to 107 for five at lunch and their partnership totalled 56 before wicketkeeper Jayawardene (29) edged to opposite number Kruger van Wyk to give leg-spinner Todd Astle his first Test wicket.

Suraj Randiv failed to score but Mathews reached a dogged 178-ball half-century with his fifth boundary, hammered over midwicket off Astle, before repeating the dose next ball.

Nuwan Kulasekara hit Astle for two sixes in an over and Mathews lifted Jeetan Patel beyond the ropes but resistance was still the order of the day as Sri Lanka reached tea on 167 for seven.

But Kulasekara fell three balls after the restart for 18 and when Southee removed Shaminda Eranga without scoring for figures of three for 58, the tourists were on the cusp of a series-tying win.

Mathews went down swinging, hitting four boundaries in Southee's next over, but then edged Boult (three for 33) to Martin Guptill at second slip to end the match.

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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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