An Iranian airline sanctioned for giving support to the Islamic Revolutionary Guard Corps and Hezbollah could have fuelled the spread of the coronavirus in the Middle East, an investigation has found.
Mahan Air operated passenger flights to four Chinese destinations on 16 round-trips in February and March despite the Iranian government suspending the company’s flights as Covid-19 gripped Iran, data on flightradar24.com showed.
The flight destinations included Beijing, Shanghai, Guangzhou and Shenzhen, four of the biggest cities in China.
Mahan Air also flew to Lebanon and Iraq after the flight ban and may have introduced the first cases in each country.
BBC News Arabic reported that insiders at the airline said cabin crew were told to remain silent and threatened with prosecution by their superiors when they raised their concerns. The staff also complained about a lack of protective equipment during the flights – and 50 showed symptoms of Covid-19 but were not given opportunities to self-isolate.
On social media, the investigation found evidence of anger in the Middle East about the flights and the health risk they posed.
“I call on the Iraqi government to stop flights from Iran. The flights between the countries are 24/7,” said one man in Iraq as he voiced his concern about contracting the virus.
A woman said: “Why? Why sacrifice the Lebanese people?”
Iran was among the first countries to which Covid-19 spread from China initially and has reported about 100,000 cases and 6,340 deaths. But it is widely believed the true figure is far higher as authorities have sought to conceal the extent of the damage.
A separate investigation, by Bloomberg, found that Mahan Air has been used to transfer about $500 million in gold from Venezuela to Iran this month as payment for Tehran’s help to revive the South American country’s crippled oil refineries.
At least six planes were flown to Venezuela in the past week.
The two nations are working more closely together as they try to avoid US sanctions and a pandemic-sparked collapse in the price of oil.
In 2011 the US Treasury sanctioned Mahan Air for providing “transportation, funds transfers and personnel travel” to the IRGC’s Quds Force.
“Mahan Air also provides transportation services to Hezbollah, a Lebanon-based designated Foreign Terrorist Organisation.
“Mahan Air has transported personnel, weapons and goods on behalf of Hezbollah and omitted from Mahan Air cargo manifests [of] secret weapons shipments bound for Hezbollah,” the treasury said.
Experts say confined spaces such as planes are high-risk environments in which the virus could spread with ease. Most airlines have made face masks mandatory.
The International Air Transport Association on Tuesday came out in favour of passengers wearing masks onboard.
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
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
RACE CARD
6.30pm: Maiden (TB) Dh82,500 (Dirt) 1,200m
7.05pm: Maiden (TB) Dh82,500 (D) 1,900m
7.40pm: Handicap (TB) Dh102,500 (D) 2,000m
8.15pm: Conditions (TB) Dh120,000 (D) 1,600m
8.50pm: Handicap (TB) Dh95,000 (D) 1,600m
9.25pm: Handicap (TB) Dh87,500 (D) 1,400m
