The Indian Navy's third stealth-guided missile destroyer was commissioned by Defence Minister Rajnath Singh on Tuesday. AFP
The Indian Navy's third stealth-guided missile destroyer was commissioned by Defence Minister Rajnath Singh on Tuesday. AFP
The Indian Navy's third stealth-guided missile destroyer was commissioned by Defence Minister Rajnath Singh on Tuesday. AFP
The Indian Navy's third stealth-guided missile destroyer was commissioned by Defence Minister Rajnath Singh on Tuesday. AFP

India sends out ships and planes to protect Red Sea shipping after drone attack


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India has deployed warships and reconnaissance planes to deter further attacks after a chemical tanker was hit by a drone about 400km off its west coast on Saturday.

The US military said the attack, which came amid drone and missile attacks on vessels in the Red Sea by Yemen's Iran-aligned Houthi rebels, was launched from Iran. The attack caused a fire on board but there were no casualties.

The Indian Navy said it had sent out three guided-missile destroyers to maintain a deterrent presence and was using long-range P8I maritime reconnaissance aircraft to patrol the waters off its western coast.

The MV Chem Pluto, a Liberia-flagged, Japanese-owned, and Netherlands-operated tanker, was hit en route from Saudi Arabia to India's New Mangalore port the Indian Coast Guard said.

Another ship reportedly bound for India, the MV Sai Baba crude oil tanker, was also hit by a drone on Saturday as it sailed through the southern Red Sea. The US military's Central Command said the drone was launched by Houthi rebels in Yemen.

Defence Minister Rajnath Singh said on Tuesday that the government has taken the attacks “very seriously”.

“The Indian Navy has increased surveillance on the sea. Whoever has carried out this attack, we will find them even if it is from the sea bed,” Mr Singh said. “Those behind these attacks will be brought to justice.”

Indian Defence Minister Rajnath Singh reviews the guard of honour during the commissioning of the INS Imphal stealth-guided missile destroyer at the Naval Dockyard in Mumbai. EPA
Indian Defence Minister Rajnath Singh reviews the guard of honour during the commissioning of the INS Imphal stealth-guided missile destroyer at the Naval Dockyard in Mumbai. EPA

The attacks in the Red Sea prompted the formation of a US-led coalition to counter the threat. Many shipping companies have opted to divert their vessels to safer but longer routes, raising fears of an effect on global supply chains and the trade flows of major economies.

Somali pirates last week seized two vessels after a lull of about six years. The Indian Navy said it sent an antipiracy patrol ship and aircraft to locate and assist one of the vessels, the MV Ruen. It also deployed another guided missile destroyer to the Gulf of Aden.

India's naval ships and patrol aircraft are routinely deployed for antipiracy and maritime security operations in the northern Arabian Sea, Gulf of Aden, and the western Indian Ocean, along with warships from other nations including the US and China.

Rahul Bhonsle, director of Security Risks Asia, said drone attacks posed a greater problem than piracy.

“The challenge from the Somali pirates can be well-contained because international antipiracy measures are ongoing and India is very active in that,” he told The National.

“The problem comes with drone attacks as merchant ships don’t have defence cover.” This has to be tackled at the source – the Houthi rebels – through co-ordinated diplomatic and military efforts, Mr Bhonsle said.

“India has now deployed four warships to provide air defence cover and is likely to deploy more if required, and co-ordinate with other navies to ensure commercial and energy shipping is unhindered,’’ he said.

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Dr Ayham Ammora, scientist and business executive

Ali Azeem, business leader

Tony Booth, professor of education

Lord Browne, former BP chief executive

Dr Mohamed El-Erian, economist

Professor Wyn Evans, astrophysicist

Dr Mark Mann, scientist

Gina MIller, anti-Brexit campaigner

Lord Smith, former Cabinet minister

Sandi Toksvig, broadcaster

 

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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

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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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Takreem Awards winners 2021

Corporate Leadership: Carl Bistany (Lebanon)

Cultural Excellence: Hoor Al Qasimi (UAE)

Environmental Development and Sustainability: Bkerzay (Lebanon)

Environmental Development and Sustainability: Raya Ani (Iraq)

Humanitarian and Civic Services: Women’s Programs Association (Lebanon)

Humanitarian and Civic Services: Osamah Al Thini (Libya)

Excellence in Education: World Innovation Summit for Education (WISE) (Qatar)

Outstanding Arab Woman: Balghis Badri (Sudan)

Scientific and Technological Achievement: Mohamed Slim Alouini (KSA)

Young Entrepreneur: Omar Itani (Lebanon)

Lifetime Achievement: Suad Al Amiry (Palestine)

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Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Updated: December 26, 2023, 1:29 PM