An ISIS attack on electricity pylons in an area south of Baghdad held by Iran-backed hardline militia Kataib Hezbollah caused several explosions on Tuesday, official and militia sources told The National.
The incident in Jurf Al Sakhar, 65 kilometres south of Baghdad, was first reported as air strikes, but militias in the area, the Iraqi government and the US, which has troops in the country, denied this.
No deaths or injuries were reported.
"Several electric power transmission towers in the Bahbahani area, north of the Babil governorate, were attacked and sabotaged by ISIS gangs. This was initially interpreted as air strikes," the Iraqi military said.
A security operation was launched after the attack to find militants.
ISIS has not claimed responsibility for the attacks or commented on the accusation that they carried out the attack.
Despite the government announcing victory over ISIS in 2017, remnants and cells of the group still regularly stage hit-and-run attacks or plant explosives across the country.
Several reports stated that security forces in the governorate had come under attack, but military sources refuted the claim.
Air strikes on Iran-backed groups in Iraq – in pictures
Reports initially suggested that the US had conducted air strikes on the area, targeting Iranian backed militia groups. However, Capt Bill Urban, a spokesman for US Central Command, told The National that Washington was not involved.
The explosions "are not and were not the results of any US military action", he said.
"I have seen reports of the explosion but have no independent knowledge of it," Capt Urban said.
Yehya Rasool, a spokesman for the Iraqi military, also said the reports of attacks on Iraqi security forces were wrong.
Jurf Al Sakhar was one of the main strongholds for Sunni militant groups such as Al Qaeda in Iraq following the US-led invasion of 2003.
It came under the control of the insurgents in June 2014, but they were driven out a few months later by security forces.
Thousands of Sunnis who fled the town have been unable to return as it is under the control of powerful Iran-backed Shiite militias, including Kataib Hezbollah. There are few government forces in the area.
Sunni politicians have repeatedly called for their community to return.
The attack is the latest by ISIS against Iraq's electricity infrastructure in remote areas as it seeks to destabilise the government.
High voltage power lines in remote areas such as the eastern province of Diyala and the northern provinces of Kirkuk and Salahuddin have been blown up, causing massive power outages, according to security forces.
US Secretary of State Mike Pompeo tweeted his recollection of an attempted storming of the US embassy by Iran-backed militias and their supporters in December 2019 as news emerged of the explosions.
“When violent protesters attacked the US Embassy on New Year’s Eve 2019, US State Department special agents defended the compound against the mob for more than 40 hours, with no loss of life or serious injuries,” Mr Pompeo said.
The US and Iran came close to war after the US targeted Iran-backed militia groups in late 2019 in response to attacks on US forces.
Washington launched an air strike just outside Baghdad's airport that killed Iranian general Qassem Suleimani and top Iraqi militia leader Abu Mahdi Al Muhandis on January 3 last year.
In retaliation, Tehran fired rockets at Iraqi bases hosting American forces, causing brain injuries to dozens of soldiers.
Over the past year, Iranian allies in Iraq have attacked and killed US and international troops, and attacked the Baghdad embassy. The US has retaliated by launching air strikes against militia groups.
Baghdad accuses "outlaw groups" of launching the attacks, but Washington blames Iran-backed militias. The attacks have often been claimed by fringe and formerly little heard of groups that experts say are a smokescreen for the Popular Mobilisation Forces, an umbrella grouping of militias sanctioned by the government but often supported and funded by Iran.
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
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Formula Middle East Calendar (Formula Regional and Formula 4)
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Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Founders: Mansour Althani and Abdullah Althani
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Size: 70 employees
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Favourite sport: soccer
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Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates