Ahmed Omar Saeed Sheikh's father Saeed Sheikh (L) leaves the Supreme Court building in Islamabad on January 28, 2021. AFP
Ahmed Omar Saeed Sheikh's father Saeed Sheikh (L) leaves the Supreme Court building in Islamabad on January 28, 2021. AFP
Ahmed Omar Saeed Sheikh's father Saeed Sheikh (L) leaves the Supreme Court building in Islamabad on January 28, 2021. AFP
Ahmed Omar Saeed Sheikh's father Saeed Sheikh (L) leaves the Supreme Court building in Islamabad on January 28, 2021. AFP

Daniel Pearl family decry travesty as court releases killers


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Pakistan's supreme court ordered the immediate release of a British-born militant acquitted of the 2002 murder of American journalist Daniel Pearl, a decision the reporter's family called a travesty of justice.
A three-judge bench on Thursday rejected petitions to overturn the acquittal of Ahmed Omar Saeed Sheikh and three associates and declared they should instead be freed, his lawyer said.

"According to the Supreme Court, these people should not have been imprisoned for one day," said Sheikh's lawyer, Mahmood Sheikh.

The decision is likely to cause anger in Washington, which has long accused Pakistan of being soft on terrorism. Late last year, the US suggested it would pursue Sheikh if Pakistan freed him.

"Today's decision is a complete travesty of justice and the release of these killers puts in danger journalists everywhere and the people of Pakistan," the Pearl family said.
Asra Nomani, a friend and former colleague of Pearl who was working with his family to appeal against the acquittal, said: "I'm in shock. What a betrayal. How could you let this happen on your watch Imran Khan? First Danny Pearl is murdered on your soil. And now justice is slain."
Sheikh was sentence to death in 2002 for masterminding the kidnap and murder of the Wall Street Journal bureau chief.
Pearl was kidnapped while investigating links between Pakistani militants and Richard Reid, known as the Shoe Bomber after trying to blow up a flight from Paris to Miami with explosives hidden in his shoes.
Sheikh's original trial heard he had been in contact with Pearl and promised to introduce the reporter to a religious leader in Karachi.

Pearl was instead kidnapped outside a restaurant and held in a compound on the outskirts of the city.

He was beheaded and a video of his murder shared on the internet. The horrific crime came to set a template for extremist killings.
Yet in April the Sindh High Court ruled there had been discrepancies in the original prosecution and the charges were not proven.

Pakistan had been under intense US pressure to find the culprits and concocted evidence against Sheikh and three others to make them scapegoats, his lawyers said.
"The way I look at it, their lives, the prime of their lives, has been wasted in jail without them having committed any offence whatsoever," Sheikh's lawyer said after the 2-1 Supreme Court ruling.
"The court said he should be released forthwith if he's not required in any other case."
A journalistic investigation led by Ms Nomani in 2011 concluded that Sheikh had not committed the final execution and the actual killer was Khalid Sheikh Mohammed, a member of Al Qaeda and mastermind of 9/11.

Yet Sheikh still orchestrated the terrorism-motivated kidnap and much of the plot, and Ms Nomani and the family said he was responsible for Pearl's death.
Sheikh and the three other men convicted of involvement in the kidnapping have been held under emergency orders by the Sindh provincial government since their acquittal in April 2020.

It was not immediately clear whether the government would abide by the Supreme Court ruling and free the men straight away.
Last month, Jeffrey Rosen, US attorney general at the time, said the US "stands ready to take custody of Omar Sheikh to stand trial here" and described the acquittal as "an affront to terrorism victims everywhere".

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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