Iraq's stability at Iran's whim


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When Americans and Europeans turned to their newspapers or favourite internet home page yesterday, Hollywood's Oscars probably dominated the headlines, not Iraq's elections. In the days running up to the balloting, there was more debate about the authenticity of Katherine Bigelow's best picture-winning Iraq war drama The Hurt Locker than about a stated aim of the actual war - free and fair elections - and whether they would propel Iraq towards stability.

In a celebrity-addled world, it's a wonder that Iraq wasn't urged to reschedule the vote so it wouldn't conflict with Hollywood's annual equivalent of prom night. Yet not even events in Tinseltown can hide the fact that Sunday's voting marked the start of a period of deep uncertainty in Iraq and growing jitters across the region. For one thing, the results of the balloting, overseen by an Iraqi security force numbering 670,000, may not be known for days. Allegations of vote fraud are all but a forgone conclusion.

For another, elections in December 2005 did not produce a prime minister and cabinet until May 2006. Given that time frame, this time around, it could take until the start of Ramadan, in the second week of August, to form a government. By itself, this post-election hurly-burly is enough to cause nervousness. But there's more. The political horse-trading to seat a new government will occur against a backdrop of withdrawing US troops. Although the United States is still spending $1.5 billion (Dh5.5bn) a week to support them, their numbers already have fallen to less than 100,000 from a high of 170,000.

By Ramadan, no more than 50,000 troops are to remain in the country. If a political argument about the legitimacy of the new government turns violent, there will be fewer troops to stop it. The reason that Iraq's post-election hubbub really sets teeth on edge, though, is the looming confrontation with Iran over its nuclear programme. On October 1, US and Iranian diplomats met face to face for the first time in 30 years and Tehran agreed to transfer the bulk of its low-enriched uranium to Russia and France for reprocessing into fuel rods for peaceful purposes.

Since then, the agreement has collapsed, and the end-of-2009 deadline set by Barack Obama, the president, for measurable compliance with the demands by the International Atomic Energy has passed. The US administration is now drafting a new round of UN sanctions against Tehran. The sanctions will target Revolutionary Guards Corps and its large network of companies, it has been reported. To boost the sanctions and win the key support of China, the Obama administration is working closely with Riyadh and Abu Dhabi to offset any cutback in oil shipments that Beijing may suffer under the plan, The Washington Post reported this week.

If the UN Security Council approves tougher economic measures against Iran, Tehran could retaliate by leveraging its deep diplomatic, religious and trade ties with Iraq, as well as covert ties with militias, to sow violence and instability there. That, in turn, could delay the US troop withdrawal from Iraq. The scenario makes clear, as nothing else, that stability in Iraq is at the mercy of Iran's role in Iraq, and that for Washington, its Iraq and Iran policies have become irrevocably wed.

As the sanctions debate intensifies in the coming weeks, Mr Obama faces a choice between seeking a deal with Iran, in part to secure Iraq against turmoil, or delaying the US troop withdrawal, which would have profound repercussions for him at home as midterm congressional elections approach in November. Mr Obama, who uttered only 101 words about Iraq in his state-of-the-union address in January, is not the only political figure being drawn inexorably into the Iraq spotlight.

Iraqi legislators are returning to it, too. They earn far more than their counterparts in Lebanon, Jordan and Egypt - about $97,800 annually, according to figures compiled by The Wall Street Journal. They also receive a $102,000 annual budget to pay up to 30 security guards, a one-time payment of 70 million dinars (Dh189,000) to purchase an armoured car, and up to 80 per cent of their salary benefits in an annual pension package, the paper said.

Will they earn their salary and be able to set aside parochial interests for the sake of the national interest? Joining Iraqi lawmakers in the public eye will be Iraqi nationalism. After surviving pressure to break up the country during the near civil war in 2006, the majority of Iraqis insistent on an Iraq beholden only to itself are poised to be sorely tested, this time by Iran, which seeks, despite domestic turmoil, to deepen its influence beyond its borders.

For all parties involved in the Iraqi drama in the past decade, 2010 is poised to be a pivotal year. Were it a movie - it's Oscar season, why fight it? - one might call it The Year of Living Dangerously. cnelson@thenational.ae

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Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.

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1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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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

Tax authority targets shisha levy evasion

The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.

Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".

The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.

He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.

"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.

As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.

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Group A: UAE, Spain, South Africa, Jamaica

Group B: Bangladesh, Serbia, Korea

Group C: Bharat, Denmark, Kenya, USA

Group D: Oman, Austria, Rwanda

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Title: General Practitioner with a speciality in cardiology

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A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

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When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

Tenet

Director: Christopher Nolan

Stars: John David Washington, Robert Pattinson, Elizabeth Debicki, Dimple Kapadia, Michael Caine, Kenneth Branagh 

Rating: 5/5

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Goalkeepers Simon (Athletic Bilbao), De Gea (Manchester United), Sanchez (Brighton)

Defenders Gaya (Valencia), Alba (Barcelona), P Torres (Villarreal), Laporte (Manchester City), Garcia (Manchester City), D Llorente (Leeds), Azpilicueta (Chelsea)

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Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5