North Korea's missile launch during a television news programme in Seoul on Wednesday. AP
North Korea's missile launch during a television news programme in Seoul on Wednesday. AP
North Korea's missile launch during a television news programme in Seoul on Wednesday. AP
North Korea's missile launch during a television news programme in Seoul on Wednesday. AP

North Korea fires longest-range missile before South Korea-Japan meeting


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North Korea fired a long-range missile off its east coast on Wednesday, ahead of a meeting of the leaders of South Korea and Japan on the sidelines of a Nato summit in Lithuania to discuss rising threats, including a nuclear-armed North Korea.

The missile flew for 74 minutes for a distance of about 1,000km, Japan's chief cabinet secretary Hirokazu Matsuno said.

It was the longest flight time yet recorded by a North Korean missile and came a day after a rare meeting between the US, South Korea and Japan in Hawaii.

South Korean and US officials met immediately after the launch to reiterate their strengthened joint defence.

“We strongly condemn North Korea's launch of a long-range ballistic missile as a grave provocative act that harms the peace and stability of the Korean peninsula and the international community, and is a clear violation of UN Security Council resolutions,” the South Korean Joint Chiefs of Staff said.

Washington has been pressing Japan and South Korea to work more closely to counter growing threats from China and North Korea.

Relations between Seoul and Tokyo have long been strained over disputes dating back to Japan's occupation of Korea between 1910 and 1945.

Heated complaints

The missile launch came after heated complaints from North Korea in recent days, accusing American spy planes of breaching its air space over economic zones.

Pyongyang also condemned a recent visit to South Korea by a US nuclear-powered cruise missile submarine.

Japan's coastguard said what was believed to be a ballistic missile appeared to have landed as of mid-morning.

It had earlier predicted the projectile would fall outside Japan's Exclusive Economic Zone in an area about 550km east of the Korean peninsula.

Mr Matsuno said the launch threatened the peace and stability of the region and the international community.

“Moreover, such ballistic missile launches violate relevant United Nations Security Council resolutions and are a serious security issue for our citizens. We have lodged a strong protest against North Korea through our embassy in Beijing,” Mr Matsuno said.

Mr Matsuno said a summit was also planned with South Korea, Australia and New Zealand.

“We will respond in close co-operation with the international community,” he said.

  • Air raid sirens sounded across South Korea as North Korea tested its missile systems on Wednesday, including one that fell close to South Korean waters. Here, travellers at a railway station in Seoul watch a news broadcast. AFP
    Air raid sirens sounded across South Korea as North Korea tested its missile systems on Wednesday, including one that fell close to South Korean waters. Here, travellers at a railway station in Seoul watch a news broadcast. AFP
  • North Korean leader Kim Jong Un delivers a speech at the Central Academy of the Workers' Party of Korea in Pyongyang on October 18. AFP
    North Korean leader Kim Jong Un delivers a speech at the Central Academy of the Workers' Party of Korea in Pyongyang on October 18. AFP
  • In Tokyo, Japanese Prime Minister Fumio Kishida speaks to reporters about North Korea's ballistic missile test on Wednesday. Reuters
    In Tokyo, Japanese Prime Minister Fumio Kishida speaks to reporters about North Korea's ballistic missile test on Wednesday. Reuters
  • South Korea's President Yoon Suk-yeol, centre, attends a meeting of the National Security Council in Seoul, South Korea, on Wednesday. AP
    South Korea's President Yoon Suk-yeol, centre, attends a meeting of the National Security Council in Seoul, South Korea, on Wednesday. AP
  • Travellers at Seoul Railway Station watch a TV news report on North Korea's missile tests. AP
    Travellers at Seoul Railway Station watch a TV news report on North Korea's missile tests. AP
  • A soldier at Seoul Railway Station watches a TV news report about North Korea's missile tests. EPA
    A soldier at Seoul Railway Station watches a TV news report about North Korea's missile tests. EPA
  • Television news in South Korea reports news of North Korea's missile tests. On Wednesday, Seoul told residents on the island of Ulleungdo off its east coast to evacuate to bunkers after North Korea fired three short range ballistic missiles. AFP
    Television news in South Korea reports news of North Korea's missile tests. On Wednesday, Seoul told residents on the island of Ulleungdo off its east coast to evacuate to bunkers after North Korea fired three short range ballistic missiles. AFP
  • At a railway station in Seoul on Wednesday, a man watches a television broadcast showing a news broadcast with file footage of a North Korean missile test. AFP
    At a railway station in Seoul on Wednesday, a man watches a television broadcast showing a news broadcast with file footage of a North Korean missile test. AFP

North Korea test-fired its first solid-fuel intercontinental ballistic missile this year and conducted a failed attempt to launch its first spy satellite on a new launch vehicle.

Security Council resolutions ban North Korea's use of ballistic missile technology, including for satellite launches.

The Security Council and several countries have imposed sanctions on Pyongyang for its missile and nuclear weapons programmes.

Analysts say commercial satellite imagery shows the North is expected to stage displays of military force, including a large parade, before a holiday on July 27 holiday that commemorates its claim to victory in the 1950-1953 Korean War against the US, South Korea and their allies.

Kim Yo-jong, the powerful sister of leader Kim Jong-un, on Tuesday accused a US military spy plane of entering the country's Exclusive Economic Zone eight times, state media KCNA reported.

Leif-Eric Easley, an international studies professor at Ewha Womans University in Seoul, said “Kim Yo-jong's bellicose statement against US surveillance aircraft is part of a North Korean pattern of inflating external threats to rally domestic support and justify weapons tests”.

“Pyongyang also times its shows of force to disrupt what it perceives as diplomatic co-ordination against it, in this case, South Korea and Japan’s leaders meeting during the Nato summit.”

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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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