Iran has retrieved data, including a portion of cockpit conversations, from the flight recorder of the Ukrainian airliner accidentally shot down by its Islamic Revolutionary Guard Corps (IRGC) in January, killing all 176 people on board, an Iranian official said on Sunday.
The official's remarks were reported on the website of Iran’s Civil Aviation Organisation, which described them as part of the final report that Tehran planned to issue on the shooting down of Ukraine International Airlines Flight 752.
Iranian authorities at first denied responsibility for the January 8 crash near Tehran, but changed course days later after western nations presented evidence that Iran had shot the plane down.
The incident happened the night Iran launched a ballistic missile attack on US military positions in in Iraq, its response to the American drone strike that killed IRGC Gen Qassem Suleimani in Baghdad on January 3.
At the time, Iranian troops were braced for a US counterstrike and appeared to have mistaken the plane for a missile. Iran, however, has not acknowledged that, only saying that after the missile attack, its air defence was sufficiently alert and had allowed scheduled air traffic to resume — a reference to the Ukrainian plane being allowed to take off from Tehran.
The Ukrainian plane was apparently targeted by two missiles. The plane had just taken off from Tehran’s Imam Khomeini International Airport when the first missile exploded, possibly damaging its radio equipment. The second missile was to have likely struck the aircraft directly, as videos from that night showed the plane exploding before crashing into a playground and farmland on the outskirts of Tehran.
For days after the crash, Iranian investigators sifted through the debris of the plane.
The head of Iran’s Civil Aviation Organisation, Capt Touraj Dehghani Zangeneh, said on Sunday that the Ukrainian passenger plane’s black boxes had only 19 seconds of conversation following the first explosion, although the second missile reached the plane 25 seconds later. The report quoting him did not elaborate.
He said the first missile explosion sent shrapnel into the plane, which was likely to have disrupted the plane’s flight recorders. He did not reveal any details of the cockpit conversation that was retrieved.
Representatives from the US, Ukraine, France, Canada, Britain and Sweden — countries whose citizens were killed in the crash — were present during the process to gather data from the recorders, Mr Zangeneh said.
In the months since, Iran has struggled with the Middle East’s largest and deadliest outbreak of the coronavirus. The Iranian government is also grappling with both crushing US sanctions and vast domestic economic problems.
Last month, an initial report from the Iranian investigation said that a misaligned missile battery, miscommunication between troops and their commanders and a decision to fire without authorisation all led to the shooting down of the plane.
That report said the surface-to-air missile battery that targeted the Boeing 737-800 had been relocated and was not properly reoriented. Those manning the missile battery could not communicate with their command centre, they misidentified the civilian flight as a threat and opened fire twice without getting approval from ranking officials, it said.
Western intelligence officials and analysts believed Iran shot down the aircraft with a Russian-made Tor system, known to Nato as the SA-15. In 2007, Iran took the delivery of 29 Tor M1 units from Russia under a contract worth an estimated $700 million. The system is mounted on a tracked vehicle and carries a radar and a pack of eight missiles.
The initial report did not say why the IRGC moved the air defence system, although that area near the airport was believed to be home to both regular military and bases of the IRGC.
It also noted that the Ukrainian flight had done nothing out of the ordinary up until the missile launch, with its transponder and other data being broadcast. The aircraft’s black box flight recorder was sent to Paris in June, where international investigators examined it.
“Data recovery activity was all done with the aim of safety and preventing similar incidents,” Mr Zangeneh said, adding an appeal against “any political use of the process”.
He added that Iran’s air space was now “safe and ready” for international flights.
MATCH INFO
Euro 2020 qualifier
Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)
TV: Match is shown on BeIN Sports
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
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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Zayed Sustainability Prize
Look north
BBC business reporters, like a new raft of government officials, are being removed from the national and international hub of London and surely the quality of their work must suffer.
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Most sought after workplace benefits in the UAE
- Flexible work arrangements
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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.”