Fighting in Ethiopia's Tigray region has killed hundreds of people, threatening to destabilise Africa's second most populous nation.
Reuters reporters travelling in the northern area bordering Eritrea and Sudan, and the neighbouring Amhara region saw trucks packed with armed militia and pickups with machine-guns mounted on the back rushing to the front line in support of the federal government push.
The continent's youngest leader at 44, Ethiopia's Prime Minister Abiy Ahmed won the Nobel Peace Price last year for democratic reforms and for making peace with Eritrea.
But last week Mr Abiy, who comes from Ethiopia's largest ethnic group, the Oromo, launched a campaign against forces loyal to Tigrayan leaders whom he accused of attacking a military base in the town of Dansha.
On Monday, he sought to quash speculation that his nation was on a path to civil war, saying the idea is "unfounded and a result of not understanding our context deeply." He thanked Ethiopia's "friends" for "expressing their concern".
Mr Abiy has said jets have been bombing arms depots and other targets. Aid workers and security sources have reported heavy fighting on the ground.
A military official in Amhara, on the side of the federal troops, told Reuters that clashes with Tigrayan forces in Kirakir, near the Tigray-Amhara border, had killed nearly 500 Tigrayan forces.
Three security sources in Amhara working with the federal troops said the Ethiopian army had also lost hundreds in the original battle in Dansha.
The Tigray People's Liberation Front (TPLF), which governs the region, is battle-hardened from both the 1998-2000 war with Eritrea and the guerrilla war to topple Mengistu Haile Mariam in 1991. TPLF forces and militia allies number up to 250,000 men and possess significant hardware, experts say.
Tigrayans account for just 5 per cent of Ethiopians but had, before Mr Abiy's premiership, dominated politics since rebels from their ethnic group toppled Marxist military rule in 1991.
They say Mr Abiy's government has unfairly targeted them as part of a crackdown on past rights abuses and corruption.
"These fascists have demonstrated they will show no mercy in destroying Tigrayans by launching more than 10 air strike attempts in Tigrayan cities," the TPLF said via Facebook.
There was no immediate response from the prime minister's office, or from the spokesman of the state of emergency task force established by the government.
The army said it was intensifying attacks and that large numbers of Tigrayan special forces and militia were surrendering. It denied a TPLF claim of downing a jet.
Mr Abiy, a former soldier who fought alongside Tigrayans against Eritrea, has so far defied calls from the United Nations and others to negotiate.
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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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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5