Iran’s offer of $150,000 for the families of each of the 176 victims of a Ukrainian airline shot down by missiles over Tehran received a lukewarm response.
Ukraine’s ambassador to Canada, where most of the passengers lived, worked or studied, said the decision on Wednesday, announced days before the anniversary of the tragedy, would not deter bereaved relatives from seeking justice.
Five nations representing the victims of the crash would continue discussions among themselves about the appropriate compensation for the families.
Iran claimed the elite Islamic Revolutionary Guard Corps accidentally shot down the Ukraine International Airlines jet on January 8 after it was mistaken for an American cruise missile.
The shooting down occurred five days after the US assassinated Qassem Suleimani, a top IRGC commander, in a drone strike in Iraq.
Iran said it sent its final report on the crash to countries involved in the investigation, which would include Ukraine.
But the ambassador, Andriy Shevchenko, told The National that Ukraine had not yet received a draft or final version of the report.
Under civil aviation guidelines, a final report should be published within a year of an accident so lessons could be learnt to prevent similar tragedies.
The compensation offer was agreed to at a meeting of Iran’s Cabinet on Wednesday.
“The Cabinet approved the provision of $150,000 or the equivalent in euros as soon as possible to the families and survivors of each of the victims of the Ukrainian plan crash,” the official Irna news agency reported.
Mr Shevchenko said: “We would still expect Iran to co-ordinate and co-operate with our nations on the issue of the financial compensation.
"This Iranian decision does not change anything for us. We are very focused on finding a co-ordinated solution between the five countries affected and Iran.”
“There should be a very clear multilateral decision that would be accepted by everyone and everyone would be in agreement with.”
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George Furbank; Jonny May, Manu Tuilagi, Owen Farrell (capt), Elliot Daly; George Ford, Ben Youngs; Tom Curry, Sam Underhill, Courtney Lawes; Charlie Ewels, Maro Itoje; Kyle Sinckler, Jamie George, Joe Marler
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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
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