China landslides leave thousands missing as death toll climbs


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Rubble-strewn floodwaters tore through a remote corner of northwestern China today, smashing buildings, overturning cars and killing at least 127 people. Half of an entire town was under water and an estimated 2,000 more people were missing in the latest deluge in a summer that has seen China's worst seasonal flooding in a decade. Terrified residents fled to high ground or upper stories of apartment buildings after a debris-blocked river overflowed during the night in the northwestern province of Gansu. Worst hit was the county seat of Zhouqu in the province's Gannan Tibetan Autonomous Prefecture, with the official Xinhua News Agency reporting half of it under water. Many houses collapsed and streets were covered with metre of mud and water after the early morning landslides, it said. The landslides struck after heavy rains lashed the country late Saturday and the Bailong River overflowed, Xinhua quoted the head of Zhouqu county, Diemujiangteng, as saying, "Now the sludge (thick mud) has became the biggest problem to rescue operations. It's too thick to walk or drive through," he was quoted as saying. State broadcaster China Central Television said the death toll in the province was at least 127, with about 2,000 people missing. Power, water and communications were cut in affected areas in the southern part of the province, about one-third of whose residents are ethnic Tibetan, and it was not known how many of the missing were in danger or simply out of contact. The devastation was worsened by the blockage of the river upstream, which created a 3km-long lake that overfilled and sent massive waves of mud, rocks and water crashing down on the town, ripping houses from their foundations and tearing six-story apartment buildings in half. Explosive experts were flying to the scene by helicopter to demolish the blockage and safely release potential flood waters. Tents, boxed meals and medical supplies were being rushed to the area, where more rain was forecast through Wednesday. CCTV said 45,000 people had been evacuated, but the region's remote, mountainous location was hampering the emergency response. Heavy equipment could not be brought along the narrow access roads, forcing rescuers to rely on shovels, picks and buckets, while scattered stones either barred the way or caused tires to rupture. Pictures showed streets covered in layers of mud and stones, shattered buildings and cars washed downstream. CCTV reported the premier Wen Jiabao was had flown to Jiuzhaigou in neighboring Sichuan province and was heading to the disaster area to oversee rescue work. The Lanzhou Military Area Command in the provincial capital dispatched 2,400 soldiers to help with rescue efforts. More than 1,000 firefighters and militia members from the surrounding area were also being sent to aid relief efforts, Xinhua said. Around China, the country's worst flooding in a decade has killed more than 1,100 people this year, with more than 600 still missing. The floods have caused tens of billions of dollars in damage across 28 provinces and regions. Overall this year, about 875,000 homes have been destroyed, 9.61 million people evacuated, and 22 million acres (8.76 million hectares) of crops ruined, according to the government's flood control office.

*AP

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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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