No plans to extradite passport fraud suspect yet: police chief


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DUBAI // Authorities in the UAE will not immediately seek the extradition of a suspected Mossad agent who allegedly played a role in the Dubai assassination of an Hamas official. The Federal Prosecutor's Office in Germany yesterday said a man had been detained by Polish police on suspicion of illegally obtaining a German passport for one of the members of a hit squad. That hit squad is linked to the murder of Mahmoud al Mabhouh at the Al Bustan Rotana in Dubai earlier this year. Lt Gen Dahi Khalfan Tamim, Dubai Police chief, told the National authorities in Dubai would not seek the extradition of the suspect from Germany, where the crime is said to have happened. "This person has committed the crime in Germany and therefore it is only normal that he will be prosecuted there," he said. "For us, what is important that he will receive his punishment irrespective of which country." However, the police chief indicated that if the suspect participated in the murder in Dubai then extradition would be sought. A German official had earlier said the arrest was linked to the German investigation into the illegal obtaining of a passport in the name of Michael Bodenheimer, which was allegedly used by one of the assassins. "The fact that German investigators could develop their own investigations is a clear indication of the strength of the information provided by us and that the pictures and other data collected are accurate," said Lt Gen Tamim. "The co-operation of the different Interpol members is leading the development of investigations. We will continue to co-operate with the different concerned authorities in the case," said Lt General Tamim. wissa@thenational.ae

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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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. 

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