US tries to contain damage from WikiLeaks


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WASHINGTON // US diplomats were bracing themselves last night to respond to the public revelation of their confidential dealings with foreign officials and governments contained in 250,000 official documents that have been disclosed by the online whistleblower group WikiLeaks, some of which were last night posted on The New York Times website

The cables, as to be expected for such a massive disclosure, cover a wide range of topics, including the bargaining to empty Guantanamo Bay prison, suspicions of corruption in the Afghan government and an alleged global computer hacking effort by the Chinese government.

Some of the documents leaked to The New York Times chronicle the concerns of Arab states about the growing power of Iran and their calls on the United States to deal with Tehran as a nuclear threat.

Bahrain's King Hamad bin Isa Al Khalifa tells the Americans that the Iranian nuclear programme "must be stopped," according to one cable quoted by The Times. "The danger of letting it go on is greater than the danger of stopping it."

Julian Assange, the WikiLeaks founder, said topics covered in the documents were wide-ranging and significant.

"The material ... covers essentially every major issue in every country in the world," he told a conference of investigative journalists in Jordan from an unidentified location.

Mr Assange told the reporters he was speaking to them by video link because "Jordan's not the best place to be with the CIA on your tail".

The State Department late on Saturday made public a letter it had sent to Mr Assange and an attorney representing the group warning that publication of the documents could endanger the lives of "countless innocent individuals", from journalists to soldiers, and "place at risk cooperation with countries" as well as "on-going military operations".

The letter, signed by Harold Koh, the State Department's legal adviser, warned Mr Assange that if the documents were obtained from US officials without proper authorisation, merely holding the documents placed him and WikiLeaks in violation of US law. Mr Koh urged the group to return the documents and destroy any copies.

The State Department also rejected any negotiations with WikiLeaks aimed at ascertaining who might be placed in danger as a result of the document disclosure.

"In your letter, you say you want - consistent with your goal of 'maximum disclosure' - information regarding individuals who may be 'at significant risk of harm' because of your actions," Mr Koh wrote.

"Despite your stated desire to protect those lives, you have done the opposite and endangered the lives of countless individuals."

Officials in Washington are meanwhile scrambling to contain the damage from the documents.

In order to mitigate the fallout of the release of the documents, State Department officials have reportedly been in contact with their counterparts in the UAE, Saudi Arabia, Afghanistan, Great Britain, France and Germany to indicate what the documents are likely to contain.

There was real concern in Washington that revelations in the documents could seriously hamper the ability of diplomats around the world to be candid in their future assessments regarding their postings.

Last week, Elizabeth King, the Pentagon's assistant secretary for administrative affairs, wrote to the Senate and House armed services committees, the US congressional defence panels, to warn that publicly divulging the documents could touch on "an enormous range" of sensitive foreign policy issues and potentially "wreak havoc".

US officials have repeatedly denounced WikiLeaks' releases as a danger to national security.

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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