NEW DELHI // India's main opposition party elected a new leader today after the scandal-tainted incumbent resigned abruptly following a corruption scandal just over a year before national elections.
Nitin Gadkari, the president of the Hindu nationalist Bharatiya Janata Party (BJP) since 2009, stepped down late on Tuesday over an investigation into alleged misuse of funds for irrigation work in Maharashtra state.
Mr Gadkari is widely seen as having failed to rejuvenate the BJP, which has been out of power since 2004, and the disorderly transition at the top is a further blow as the party looks ahead to elections in early 2014.
Mr Gadkari said he had decided to quit after income tax officers raided 11 offices in Mumbai on Tuesday to investigate funds generated by his company, but he denounced the probe as "a political conspiracy" hatched by the Congress party.
Last year, Mr Gadkari was accused of using his political clout to acquire land at below the market rate for the construction of a dam.
Investigators are also conducting a financial probe of the Purti Group, a company headed by Mr Gadkari which has offices all over India.
In many instances, details of directors and addresses of companies that have invested in the Purti Group have turned out to be false, with Mr Gadkari's drivers, cook and house help shown as investors in the company.
"I have done nothing wrong but I have chosen to resign because I do not want the party's image to be maligned," he said.
"I will come back only when my name is cleared from the corruption cases."
The party hastily appointed veteran party leader Rajnath Singh, 61, a parliamentarian and former state leader who served as BJP president from 2005 to 2009 when Mr Gadkari took over. His new term will end in 2015.
"I am taking this post at a crucial time and it is my responsibility to consolidate the party and prepare for the elections. We have a big battle waiting for us," said Mr Singh.
The BJP's woes come as the ruling Congress named Rahul Gandhi, the scion of Gandhi political dynasty, as its vice-president at the weekend. He is now expected to lead the party into the polls.
The BJP has generally failed to capitalise on a string of corruption scandals that have afflicted the Congress government led by the prime minister, Manmohan Singh, since its re-election in 2009.
It is also seen as riven with internal power struggles, with the controversial regional leader Narendra Modi pushing hard to be the 2014 prime ministerial candidate, which is being resisted by other factions.
Mr Modi, whose image remains tarnished by religious riots in his home state of Gujarat in 2002, inspires loyalty from Hindu right-wingers and business groups, but others fear he is a polarising figure who does not have broad appeal.
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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CHINESE GRAND PRIX STARTING GRID
1st row
Sebastian Vettel (Ferrari)
Kimi Raikkonen (Ferrari)
2nd row
Valtteri Bottas (Mercedes-GP)
Lewis Hamilton (Mercedes-GP)
3rd row
Max Verstappen (Red Bull Racing)
Daniel Ricciardo (Red Bull Racing)
4th row
Nico Hulkenberg (Renault)
Sergio Perez (Force India)
5th row
Carlos Sainz Jr (Renault)
Romain Grosjean (Haas)
6th row
Kevin Magnussen (Haas)
Esteban Ocon (Force India)
7th row
Fernando Alonso (McLaren)
Stoffel Vandoorne (McLaren)
8th row
Brendon Hartley (Toro Rosso)
Sergey Sirotkin (Williams)
9th row
Pierre Gasly (Toro Rosso)
Lance Stroll (Williams)
10th row
Charles Leclerc (Sauber)
arcus Ericsson (Sauber)
Fund-raising tips for start-ups
Develop an innovative business concept
Have the ability to differentiate yourself from competitors
Put in place a business continuity plan after Covid-19
Prepare for the worst-case scenario (further lockdowns, long wait for a vaccine, etc.)
Have enough cash to stay afloat for the next 12 to 18 months
Be creative and innovative to reduce expenses
Be prepared to use Covid-19 as an opportunity for your business
* Tips from Jassim Al Marzooqi and Walid Hanna
The biog
Born: High Wycombe, England
Favourite vehicle: One with solid axels
Favourite camping spot: Anywhere I can get to.
Favourite road trip: My first trip to Kazakhstan-Kyrgyzstan. The desert they have over there is different and the language made it a bit more challenging.
Favourite spot in the UAE: Al Dhafra. It’s unique, natural, inaccessible, unspoilt.
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%3Cp%3E%3Cstrong%3ECreator%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStreaming%20on%3A%20%3C%2Fstrong%3EMBC%20Shahid%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
The biog
Favourite car: Ferrari
Likes the colour: Black
Best movie: Avatar
Academic qualifications: Bachelor’s degree in media production from the Higher Colleges of Technology and diploma in production from the New York Film Academy
UAE currency: the story behind the money in your pockets
