UAE

Dh300m on students who never were

Ministry of Higher Education employee accused of purchasing airline tickets for non-existing students.

Haneen Dajani
Haneen Dajani
UAE

December 21, 2011

  • English
  • Arabic

ABU DHABI // A Ministry of Higher Education employee embezzled more than Dh300 million by ordering air tickets for imaginary students, a court heard yesterday.

The employee, who has evaded arrest, is accused of preparing purchasing requests for 428 airline tickets between March last year and June this year, through a travel company that is being tried with him as an accomplice.

The names used were of non-existing students, and real ones on foreign scholarships who had not requested flights.

The wife of the ministry employee is also being tried for illegally receiving a portion of the money, a charge she has denied.

Two members of the company, which was not named, and the wife stood before the Criminal Court of First Instance yesterday.

The two employees denied any connection to the crime. The company manager said he started work there after the defendant began to send the applications, and did not know they were forged.

His colleague said the applications did not raise suspicion as they were official and had all of the required stamps.

The case has been adjourned until January 8 to provide more time for the defence to prepare.

At the start of the hearing, Chief Justice Sayed Abdul Baseer, head of the Criminal Court of First Instance, stepped down from the trial because he has connections with the company, from which he buys his air tickets. Judge Abdulhameed Al Shamekh took over.

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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