Japanese beef treat may mean jail


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ABU DHABI // A Japanese government employee who brought 15kg of meat to a reception in Dubai broke his country's food laws and could be penalised at home. The man, part of a delegation that came to Dubai to promote Saga beef, brought the delicacy to a reception celebrating Japan's National Day at a hotel in the city last November. Under Japanese law, all domestic livestock and related products must be checked for safety before being exported. The country's animal quarantine department said the delegation was warned checks were necessary, regardless of the amount of meat involved.

The Japanese Consulate in Dubai, which helped organise the function, said an official from Saga, on Kyushu island, "misunderstood" Japan's food regulations, reasoning that the beef was not intended for export. On Monday, Yasushi Furukawa, governor of Saga prefecture, apologised to Shigeru Ishiba, the Japanese agriculture minister, over the incident. "They brought the beef with their own luggage," said Kenji Saito, Japan's deputy consul general in Dubai. "They thought, as long as they were bringing it in their own personal belongings, they don't need to go through process, but actually they needed to do it."

The maximum penalty for violating the law is three years in prison or a fine of 1 million yen (Dh38,280). The Abu Dhabi Food Control Authority said samples of foreign food products must be submitted to laboratories for testing before they can be brought over. mkwong@thenational.ae

EXPATS
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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
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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

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Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

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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.

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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. 

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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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