• Visitors wearing face masks are seen at Shanghai Disney Resort a day before the theme park reopens in China. Reuters
    Visitors wearing face masks are seen at Shanghai Disney Resort a day before the theme park reopens in China. Reuters
  • Men wearing face masks are seen under balloons for sale at Shanghai Disney Resort a day before the theme park reopens. Reuters
    Men wearing face masks are seen under balloons for sale at Shanghai Disney Resort a day before the theme park reopens. Reuters
  • Police officers detain a man as protesters gather outside Parliament House in Melbourne, Australia. Anti-vaxxers and people who are fed up with the coronavirus lockdown have broken social distancing rules to protest in Melbourne's CBD on Mother's Day. EPA
    Police officers detain a man as protesters gather outside Parliament House in Melbourne, Australia. Anti-vaxxers and people who are fed up with the coronavirus lockdown have broken social distancing rules to protest in Melbourne's CBD on Mother's Day. EPA
  • Indian Navy personnel watch and take photos as the INS Jalashwa ship enters the Cochin port carrying Indian citizens who were stranded in Maldives due to Covid-19, in Kochi in the south Indian state of Kerala. AFP
    Indian Navy personnel watch and take photos as the INS Jalashwa ship enters the Cochin port carrying Indian citizens who were stranded in Maldives due to Covid-19, in Kochi in the south Indian state of Kerala. AFP
  • Educators make a video call with autistic young men who can not be hosted at the association "Elan Retrouve", dedicated to psychiatric disorders in adulthood, in Paris. AFP
    Educators make a video call with autistic young men who can not be hosted at the association "Elan Retrouve", dedicated to psychiatric disorders in adulthood, in Paris. AFP
  • A mobile phone records a Mariachi group, traditional Mexican musicians, while they serenade and play music which will be shown online for Mother's Day , in Mexico City, Mexico. Reuters
    A mobile phone records a Mariachi group, traditional Mexican musicians, while they serenade and play music which will be shown online for Mother's Day , in Mexico City, Mexico. Reuters
  • A man walks past a bar in Sinchon in western Seoul, South Korea. The Seoul city government issued an administrative order suspending business at clubs and bars after dozens of infections were reported. EPA
    A man walks past a bar in Sinchon in western Seoul, South Korea. The Seoul city government issued an administrative order suspending business at clubs and bars after dozens of infections were reported. EPA
  • A man wearing a face mask walks in the popular nightlife district of Itaewon in Seoul. AFP
    A man wearing a face mask walks in the popular nightlife district of Itaewon in Seoul. AFP
  • Protesters gather outside Parliament House in Melbourne, Australia. Anti-vaxxers and people fed up with the coronavirus lockdown have broken social distancing rules to protest in Melbourne on Mother's Day. EPA
    Protesters gather outside Parliament House in Melbourne, Australia. Anti-vaxxers and people fed up with the coronavirus lockdown have broken social distancing rules to protest in Melbourne on Mother's Day. EPA
  • The Merchandise Mart in downtown Chicago is lit up to read "Stay Home Save Lives", during the coronavirus pandemic. AP Photo
    The Merchandise Mart in downtown Chicago is lit up to read "Stay Home Save Lives", during the coronavirus pandemic. AP Photo
  • A view of the SSV Oliver Hazard Perry in Newport, Rhode Island. Non-critical retail establishments began opening their doors with limited capacity as part of Phase 1 to reopen the state. AFP
    A view of the SSV Oliver Hazard Perry in Newport, Rhode Island. Non-critical retail establishments began opening their doors with limited capacity as part of Phase 1 to reopen the state. AFP
  • People riding a motorbike carry food packets distributed by a citizen at a roadside after the government eased the nationwide lockdown imposed as a preventive measure against the Covid-19 coronavirus, in Karachi. AFP
    People riding a motorbike carry food packets distributed by a citizen at a roadside after the government eased the nationwide lockdown imposed as a preventive measure against the Covid-19 coronavirus, in Karachi. AFP
  • Thai Buddhist abbot monk Phra Athikan Thaweesup walks around the base of a Buddha statue decorated with a face mask, inside Wat Nithet Rat Pradit in Pathum Thani province, on the outskirts of Bangkok, Thailand. EPA
    Thai Buddhist abbot monk Phra Athikan Thaweesup walks around the base of a Buddha statue decorated with a face mask, inside Wat Nithet Rat Pradit in Pathum Thani province, on the outskirts of Bangkok, Thailand. EPA
  • A Sri Lankan woman wears a protective face mask as she walks in front of a mural during an island-wide curfew, in Colombo, Sri Lanka. EPA
    A Sri Lankan woman wears a protective face mask as she walks in front of a mural during an island-wide curfew, in Colombo, Sri Lanka. EPA

Coronavirus: Chinese city under lockdown after local outbreak


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Chinese authorities placed the north-eastern city of Shulan under lockdown after a rash of locally transmitted coronavirus infections that raised the national daily case count to its highest level in 10 days.

Shulan, in Jilin province bordering North Korea, accounted for 11 of the 14 new cases reported by China on Sunday. The only other locally transmitted infection was in Hubei province, whose capital Wuhan was the epicentre of the Covid-19 pandemic.

Authorities raised the threat level in Shulan county to high risk, just days after downgrading all regions in the country to low risk, and imposed lockdown in local communities and villages.

Train services in and out of the county have been suspended until the end of the month, bus services were halted and taxis barred from leaving the city, China's Global Times reported.

All but the most essential services were ordered to close, and one family member will be allowed to purchase necessities each day.

Authorities said the infections originated with a 45-year-old woman who had no recent travel or exposure history, but spread it to her husband, her three sisters and other family members.

The woman, whose infection was diagnosed on May 7, worked as a laundrywoman at a local public security bureau in Shulan, Global Times said.

The Shulan outbreak comes as China's major cities are gradually returning to normal after authorities imposed strict travel restrictions and closing huge swathes of the economy to control the spread of the virus. The number of new cases dwindled in recent months, with many of them being among citizens who had returned from abroad. There had been no new cases reported in Hubei province for over a month.

Mi Feng, a spokesman for National Health Commission, said the 12 locally transmitted cases reported on May 9 were the highest since March 11. The commission said the country should stay on high alert and avoid gatherings.

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

Gulf rugby

Who’s won what so far in 2018/19

Western Clubs Champions League: Bahrain
Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain

What’s left

UAE Conference

March 22, play-offs:
Dubai Hurricanes II v Al Ain Amblers, Jebel Ali Dragons II v Dubai Tigers

March 29, final

UAE Premiership

March 22, play-offs: 
Dubai Exiles v Jebel Ali Dragons, Abu Dhabi Harlequins v Dubai Hurricanes

March 29, final

MAIN CARD

Bantamweight 56.4kg
Abrorbek Madiminbekov v Mehdi El Jamari

Super heavyweight 94 kg
Adnan Mohammad v Mohammed Ajaraam

Lightweight 60kg
Zakaria Eljamari v Faridoon Alik Zai

Light heavyweight 81.4kg
Mahmood Amin v Taha Marrouni

Light welterweight 64.5kg
Siyovush Gulmamadov v Nouredine Samir

Light heavyweight 81.4kg
Ilyass Habibali v Haroun Baka

MATCH INFO

Champions League quarter-final, first leg

Ajax v Juventus, Wednesday, 11pm (UAE)

Match on BeIN Sports

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

War and the virus
How to become a Boglehead

Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.

•   Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.

•   Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.

•   Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.

•   Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.

•   Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.

•   Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.

•   Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.

•   Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.

RESULTS

Cagliari 5-2 Fiorentina
Udinese 0-0 SPAL
Sampdoria 0-0 Atalanta
Lazio 4-2 Lecce
Parma 2-0 Roma
Juventus 1-0 AC Milan