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Finland’s president launched a stinging attack on Russia, saying “you caused this”, in reference to his country being on the cusp of joining Nato.
During a day of significant developments in the growing alliance against Russian aggression, Britain signed a mutual defence pact with both Sweden and Finland.
Both Nordic countries are now on the verge of joining the Nato alliance, a move that is likely to both infuriate President Vladimir Putin and lead to retaliation from Moscow.
During a press conference in Helsinki on Wednesday announcing the new military alliance with Britain, Sauli Niinisto responded to a question on why Finland would join the alliance and potentially inflame relations with its neighbour.
Standing next to Boris Johnson, Mr Niinisto said his country would be threatened by Russia with “contra steps”, having been told by Mr Putin last year not to join Nato.
“By stating that, Russia stated we don’t have our own will — that made a huge change,” he said and added that Moscow was now “ready to attack a neighbouring country” following the invasion of Ukraine.
Visibly angry, he then stated: “My response is that you caused this. Look in the mirror.”
The National reported on Wednesday that people in Sweden were preparing emergency provisions in the event of a Russian cyber strike that could affect the country's electricity. Finland, too, is on high alert, with preparations being made to ready thousands of bunkers that can shelter four million people from the fallout from a nuclear attack.
The new defence agreement with Britain will also help with security in the period between applying for Nato membership and joining — potentially six month later — without being covered by the mutual aid pact of the Article Five collective defence obligation.
Shortly after signing the agreement, Mr Johnson said it “made clear something that needs to be made clear in the context of today”.
“This is a pledge that we will always come to one another’s aid … if anyone is attacked, we will come to each other’s assistance,” he added.
Mr Niinisto is expected to formally announce on Thursday that his country will seek to join Nato.
“For us, joining Nato is not against anybody — we want to maximise our security,” he said speaking at the press conference in Helsinki’s presidential palace.
During a day-long tour of the two Nordic states, the British prime minister arrived first in Stockholm where he signed the agreement with his Swedish counterpart, Magdalena Andersson
“We are steadfast and unequivocal in our support to both Sweden and Finland and the signing of these security declarations is a symbol of the everlasting assurance between our nations,” he said.
“These are not a short-term stopgap but a long-term commitment to bolster military ties and global stability and fortify Europe's defences for generations to come.”
Both Sweden and Finland will now expect to see British and US troops stationed in their countries in the coming months at least until their applications are approved by all 30 Nato member states.
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German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
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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