West Africa's main regional bloc suspended Burkina Faso from its governing bodies over the military coup this week but stopped short of imposing any sanctions, its member states said.
Burkina Faso's army overthrew President Roch Kabore on Monday, presenting the latest test to the 15-member Economic Community of West African States (Ecowas), which has struggled to mount an effective response to a series of coups in the region over the past 18 months.
A delegation of Ecowas defence chiefs were expected in Burkina Faso's capital Ouagadougou on Saturday, followed by a ministerial mission a few days later, according to a statement issued after a virtual summit on Friday.
Heads of Ecowas member states will reconvene for another summit in Ghana's capital Accra on February 3 to discuss the findings of the two delegations.
Ecowas and its international allies have condemned the coup in Burkina Faso, which they fear could further destabilise a country beset by extremist violence, but find themselves with limited leverage.
The bloc's decision to not sanction Burkina Faso contrasted with its response to coups in Mali and Guinea, with which Ecowas member states closed borders and imposed some economic sanctions in May and September.
Ecowas sanctions on the juntas in Mali and Guinea have done little to sway their behaviour, however, nor did they deter the latest coup.
The bloc could still choose to sanction Burkina Faso when members reconvene next week.
Pro-democracy activists say Ecowas is suffering from a crisis of credibility, with West Africans losing faith in regional leaders they see as manipulating the democratic process and failing to alleviate poverty or contain extremist violence.
In opening remarks to the summit, Ghana's President Nana Akufo-Addo, the acting Ecowas chairman, acknowledged the organisation has work to do convincing people of the benefits of democracy.
"The happenings in the region tell us that not everybody has accepted democracy as the preferred mode of governance," Mr Akufo-Addo said.
He said the world was looking to Ecowas "to be firm in this matter".
Ecowas imposed sanctions against Mali and Guinea following military takeovers in August 2020 and September 2021, respectively.
It significantly tightened the sanctions on Mali this month after the transitional government there went back on an earlier commitment to hold elections in February. The new restrictions included closing member states' borders with Mali and freezing most financial transactions.
But the hard line has arguably backfired by boosting the junta's support at home. Protests against the sanctions drew tens of thousands into the streets.
As in Mali, Burkina Faso's coup was in part precipitated by public frustration with insecurity caused by an insurgency by militants linked to Al Qaeda and ISIS.
The violence has killed thousands and displaced millions across the Sahel region in recent years.
The coup leader, Lt Col Paul-Henri Damiba, said on Thursday Burkina Faso would return to constitutional order "when the conditions are right".
The European Union has said it would follow Ecowas in imposing sanctions on Mali. EU foreign policy chief Josep Borrell skirted a question on Friday about whether the bloc also planned to impose sanctions on Burkina Faso.
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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Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
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Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
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2000: Israel withdraws from Lebanon after nearly 30 years without an officially demarcated border. The UN establishes the Blue Line to act as the frontier.
2007: Lebanon and Cyprus define their respective exclusive economic zones to facilitate oil and gas exploration. Israel uses this to define its EEZ with Cyprus
2011: Lebanon disputes Israeli-proposed line and submits documents to UN showing different EEZ. Cyprus offers to mediate without much progress.
2018: Lebanon signs first offshore oil and gas licencing deal with consortium of France’s Total, Italy’s Eni and Russia’s Novatek.
2018-2019: US seeks to mediate between Israel and Lebanon to prevent clashes over oil and gas resources.
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