A family visits the new campus of Dubai Modern High School.
A family visits the new campus of Dubai Modern High School.
A family visits the new campus of Dubai Modern High School.
A family visits the new campus of Dubai Modern High School.

Fee dispute as readiness of school is questioned


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DUBAI // A private school provider and Dubai education authorities were still locked in a dispute over fees last night as parents wondered if the new Dubai Modern High School campus would open on schedule tomorrow. An announcement is expected today by the Global Education Management Systems (Gems) on whether the school will be ready to open to the 2,400 pupils on the roll.

When The National visited the site at Nad al Sheeba yesterday, facilities appeared to be closer to completion than they were during an inspection last week. But hundreds of desks and chairs from the old campus remained stacked outside, and classrooms were not fully set up. Nor were the school library and computer suites. The football field and science laboratories are believed to be ready, but the swimming pool will not be operational by tomorrow. Neither will the track and cricket pitches.

Richard Forbes, the director of communications and marketing for Gems, was insisting yesterday that "Gems believes this facility is the best Indian day school in the world". Parents looking round the multi-million dirham school, housed on large plot of land near the Repton School, seemed less enthusiastic. "This is Gems usual high-handed reaction to parents with absolute lack of any duty of care towards us," Ray Chaudhuri, a member of a parent committee formed in January in opposition to the school's proposals for a huge fee increase.

"It's not fair because they failed in their duty to complete their job." Ashu Bansar, who has two children in the school, said he hoped Gems would give parents a grace period on the fee increase. "Parents don't mind if the kids are going to the new building with some of the facilities missing, but the school should give a grace period on the fee increase of about a year. That would be adequate." The campus confusion is the latest in a long-running battle between Gems and the Knowledge and Human Development Authority (KHDA), which oversees the educational system in Dubai.

Gems, the largest private school provider in the country, was granted permission to increase fees by 90 per cent to finance a move to Nad al Sheeba after the school received an eviction notice at its Al Wasl campus, which was located in part of the area that was set to be cleared for the now-postponed Jumeirah Garden City development. In January, Gems informed parents that it would move at the start of the Indian school year in April. Parents were notified of the fee increase at the same time. But construction was not finished on time.

Then, in mid-April, Gems notified parents that the school received a final eviction notice and was given until the end of the month to vacate. Mr Forbes said this week Gems did not renew its lease with the old landlord. "From our side why should we pay another Dh15m when our new building is ready," he claimed. The KHDA position was outlined by Mohammed Darwish, chief of licensing at the agency. "The ongoing construction activity on the site is evidence that the school is not ready in its entirety as per plan," he said in a statement.

Mr Darwish said the agency had granted Gems permission to increase fees by 90 per cent over two years based on the "readiness of the entire school as per plan". Some understood that the plan would include facilities to accommodate more than 700 additional pupils, but Gems disputes this. Mr Forbes said: "The KHDA are moving the goal posts and we are trying to understand where they are coming from."

Gems will spare no effort to try to find a solution in the next few days, he said, adding: "It invested in this facility based on a formal agreement with the KHDA that it could increase fees by 90 per cent over two years to help pay for the school." If Gems were to complete all of the facilities in the master plan, the cost would be Dh240m (US$65.3m). But Gems says the agreement with the KHDA was based on a Dh156m investment for a campus to accommodate 2,400 pupils. They say they have fulfilled their end of the bargain and should be allowed to increase fees immediately.

Mr Forbes added that the school was given a building completion certificate from the Tecon construction service company and approval from the civil defence authorities. Gems also says it spent Dh175m, which is Dh20m more than it had planned on the first phase of construction. Mr Forbes said facilities for another 1,000 pupils - which would cost Dh80m - was not part of the original agreement. "We may not decide to construct these classrooms," he said, adding that the school does not need the extra capacity at the moment. He cited the economic downturn and the impact of families leaving Dubai as factors that the company is considering in determining whether it will follow through with those plans.

Mr Forbes said it would take 18 months to complete the second phase of construction. He added that the company would take a major hit if it is not allowed to increase fees immediately.
klewis@thenational.ae

The Breadwinner

Director: Nora Twomey

Starring: Saara Chaudry,  Soma Chhaya,  Laara Sadiq 

Three stars

Company profile

Name: Thndr

Started: October 2020

Founders: Ahmad Hammouda and Seif Amr

Based: Cairo, Egypt

Sector: FinTech

Initial investment: pre-seed of $800,000

Funding stage: series A; $20 million

Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC,  Rabacap and MSA Capital

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

Fund-raising tips for start-ups

Develop an innovative business concept

Have the ability to differentiate yourself from competitors

Put in place a business continuity plan after Covid-19

Prepare for the worst-case scenario (further lockdowns, long wait for a vaccine, etc.) 

Have enough cash to stay afloat for the next 12 to 18 months

Be creative and innovative to reduce expenses

Be prepared to use Covid-19 as an opportunity for your business

* Tips from Jassim Al Marzooqi and Walid Hanna

THE SIXTH SENSE

Starring: Bruce Willis, Toni Collette, Hayley Joel Osment

Director: M. Night Shyamalan

Rating: 5/5

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

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

The specs

Engine: 2.0-litre 4-cyl turbo

Power: 247hp at 6,500rpm

Torque: 370Nm from 1,500-3,500rpm

Transmission: 10-speed auto

Fuel consumption: 7.8L/100km

Price: from Dh94,900

On sale: now

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The Pope's itinerary

Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport


Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial


Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport

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Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
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Charlotte Gainsbourg

Rest

(Because Music)

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Gulf Under 19s final

Dubai College A 50-12 Dubai College B

Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.