LAKE CHON, North Korea // When North Korea opens its doors, it does so for a reason.
So it was when the authoritarian government granted permission for a road trip so extensive that few North Koreans – let alone a pair of American journalists – could imagine taking it.
We drove 2,150 kilometres in a country that has barely 25,000 kilometres of road, and only 724 kilometres of those paved. By the time we returned to the capital a week later, our Chinese-made Great Wall SUV had a few new scratches and one less hubcap.
Our official destination was majestic Mount Paektu, with its jagged peaks surrounding a crystal-blue crater lake. North Korea is pursuing a plan to create dozens of special foreign investment and tourism zones, and this is one of the places it most wants to promote.
The easiest way to get there is to fly, but we had been granted permission to drive. This, we were told, would mean travelling through places that no foreign journalists had been allowed to see before.
Still, the trip was on North Korea’s terms.
Even on the loneliest of lonely motorways, we would never be without a “minder”, whose job was to monitor and supervise our activities. We were not to take photographs of any checkpoints or military installations, or talk to people we happened to see along the way.
For the most part, we were not to detour from our pre-approved route, which, to no one’s surprise, didn’t include nuclear facilities or prison camps.
Though we would not get to know the people along the way, the country itself had a great deal to say. And no place is more symbolic of the North Korean psyche than Paektu.
North Koreans venerate it for its natural beauty, but more importantly because it is considered the home of the North Korean revolution. It is dotted by reconstructions of “secret camps,” where guides dressed in period costume recount the legends of Kim Il-sung’s battles against Japanese imperialists.
Before we left Pyongyang, the capital, we were warned, half-jokingly, not to get lost. Mount Paektu straddles North Korea’s border with China.
“If you wander off into China,” we were told, “you will be shot”.
Wrested out of our beds for our ascent up to the summit after four days on the road, we fumbled without lights to pack our equipment, made our way down our hotel’s candlelit staircase and climbed into our car in the pouring-down rain. With no signs to guide him, our driver steered silently into the night.
Many people have been amazed by nighttime satellite images that show North Korea as dark as the ocean, set against a north-east Asia brimming with light. There is nothing in the world like experiencing that darkness on the ground over long stretches of the North Korean back country. Possibly more than any other populated place on the globe, North Korea is terra incognita.
As we drove towards the dawn, two armed soldiers emerged from the darkness, signalled for us to stop and for our minder to get out. The rain was coming down harder as they stood in the blurry pool of our headlights.
We had gotten lost, but we weren’t in China. We were going the wrong way down a one-lane, one-way road.
The soldiers waved us on. With North Korean tourism still in its infancy, we were safe.
We wouldn’t see another car until we reached the snowy, wind-whipped parking lot below the crater, where two small vans full of shivering Chinese waited for a guard to wake up and lead them to Lake Chon.
* Associated Press
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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
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
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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