Relations between the two Nato members were already on the rocks following France’s criticism of Turkish actions in Syria. AFP
Relations between the two Nato members were already on the rocks following France’s criticism of Turkish actions in Syria. AFP
Relations between the two Nato members were already on the rocks following France’s criticism of Turkish actions in Syria. AFP
Relations between the two Nato members were already on the rocks following France’s criticism of Turkish actions in Syria. AFP

Erdogan warns Macron not to 'mess with Turkey' over eastern Mediterranean


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Turkish President Recep Tayyip Erdogan on Saturday warned his French counterpart Emmanuel Macron "not to mess" with Turkey, as tensions between the Nato allies escalate.

"Don't mess with the Turkish people. Don't mess with Turkey," Mr Erdogan said during a televised speech in Istanbul on the 40th anniversary of the 1980 military coup.

Mr Macron has strongly condemned Ankara during a standoff between Greece and Cyprus on one side and Turkey on the other over hydrocarbon resources and naval influence in the eastern Mediterranean.

Mr Erdogan urged Greece to "stay away from wrong" actions backed by countries like France in the disputed waters, after rival naval exercises by Athens and Ankara in the region last month saw Paris step up its military presence in the region.

Mr Macron on Thursday said Europeans must be "clear and firm with, not Turkey as a nation and people, but with the government of President Erdogan which has taken unacceptable actions."

The French leader was speaking before the summit of the EU's seven Mediterranean nations which threatened Turkey with sanctions over its activities.

The latest tensions began after Turkey deployed the Oruc Reis research vessel and warships to the disputed waters on August 10 and prolonged the mission three times.

But the Turkish leader on Saturday dismissed such remarks and accused Mr Macron of "lacking historical knowledge".

"Mr Macron, you're going to have more problems with me," Mr Erdogan threatened.

They were his first comments directly taking aim at the French leader after remaining silent during the latest row.

He later said France "couldn't give a lesson in humanity" to Turkey, and told Macron to look first at France's own record, notably in Algeria and its role in the 1994 Rwandan genocide.

Relations between Turkey and France have deteriorated over the eastern Mediterranean, but the two allies disagree on other major issues including the Syria and Libya conflicts.

Ankara and Paris have previously traded barbs after French officials in 2018 met with Syrian Kurdish leaders linked to a US-backed militia viewed by Turkey as "terrorists".

The two countries are also on opposing sides in Libya, where Ankara backed the UN-recognised Government of National Accord in Tripoli against a 2019 offensive b Khalifa Haftar.

Mr Erdogan accused France of intervening in Libya "for petrol", and in Africa for "diamonds, gold, copper".

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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