Mohammad Zarif - Iran's foreign minister Vahid Salemi / AP Photo
Mohammad Zarif - Iran's foreign minister Vahid Salemi / AP Photo
Mohammad Zarif - Iran's foreign minister Vahid Salemi / AP Photo
Mohammad Zarif - Iran's foreign minister Vahid Salemi / AP Photo

World

Iran's Zarif forced to ask German military for help to refuel his official jet

German supplies refuse to fill-up Iranian airplane as US sanctions battle unfolded in Munich

Damien McElroy
Damien McElroy

February 28, 2018

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Iran’s foreign minister sought help to refuel his official jet from the German military after private companies operating at Munich airport refused to deal with Tehran citing US sanctions repercussions.

German media reports said the aircraft carrying Mohammad Javad Zarif to the German city for a security conference needed special handling so the foreign minister could leave after his visit. The incident took place while HR McMaster, the US National Security Adviser, used his own visit to Munich to warn against an Iranian airline implicated in supplying arms to the Syrian regime from Iran.

Munich airport authorities told Mr Zarif’s department he could either fly in with a sufficient reserve of fuel for his trip to Munich, in the southern state of Bavaria, or fly to the nearby Austrian capital of Vienna, where the suppliers did not take the same precautionary view.

Suddeutsche Zeitung said Mr Zarif had planned to travel to Moscow after leaving the security conference

Iranian officials rejected the choices and instead requested the conference organiser, Wolfgang Ischinger, who was previously Germany's ambassador to the US, lobby the German government to assist their plans. Germany’s defence ministry agreed to take over the refuelling a day before Mr Zarif's arrival.

In a robust address to the conference, Mr McMaster decried the European rush to invest in Iran following the 2015 accord that eased sanctions over its nuclear programme.

“Now is also the time to address serious flaws in the Iran deal and counter Iran’s destabilising activities, including its development and proliferation of missiles—and its support for terrorist proxies and militias that fuel destructive conflicts across the greater Middle East,” the US national security adviser said. “The Iranian regime foments this violence with support from commercial entities affiliated with the Islamic Revolutionary Guard Corps or IRGC—including Mahan Air, which lands right here in Munich Airport.”

In addition to citing Mahan Air, a subsidiary of the state airline, Mr McMaster went on to say that corporations dealing with Iran "might as well cut the IRGC a cheque" to fund its killing activities in the Middle East.

President Donald Trump has called the 2015 accord the “worst deal ever” and has said Washington will walk away from its terms in the next few months. European diplomats are reported to be working on an "add-on" proposal that would put new curbs on Iran ahead of a summit of State Department officials and their counterparts in Berlin next month. The New York Times reported that the supplementary agreement would place new limits on Iranian missile testing, strengthen inspections at Iranian military bases and roll forward so-called sunset clauses in the pact.

Mr Zarif is not the only Iranian official embarrassed on a trip to Europe. Diplomats including the Swedish foreign minister walked out when Alireza Avaei, the justice minister address the UN Human Rights Council on Tuesday. Mr Avaei has been subject to an EU travel ban and other sanctions since 2011. Sending him to the annual meeting provoked outrage among many delegations  and Margot Wallstrom led a walk out.

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

Tomorrow 2021

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

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