Houthi fighters shout slogans during a gathering of Houthi loyalists on the outskirts of Sanaa, Yemen July 8, 2020. Reuters
Houthi fighters shout slogans during a gathering of Houthi loyalists on the outskirts of Sanaa, Yemen July 8, 2020. Reuters
Houthi fighters shout slogans during a gathering of Houthi loyalists on the outskirts of Sanaa, Yemen July 8, 2020. Reuters
Houthi fighters shout slogans during a gathering of Houthi loyalists on the outskirts of Sanaa, Yemen July 8, 2020. Reuters

Yemeni court puts Houthi leader on trial for coup and starting war


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A north Yemen court has begun the case against top rebel leader Abdulmalik Al Houthi and 174 of his affiliates for staging a coup and sparking a war.

Mr Al Houthi, who remains at large, is being tried under judge Aqil Taj Addin, the head of the military court in the Third Military Region in Marib.

"The list of defendants included members of the Houthi Supreme Political Council, ministers in their unrecognized government, military commanders in the Houthi militia, pro-Houthi tribal leaders and some other Houthi politicians" judicial figures involved in the trial and the indictment seen by The National said.

Lawyer Hadi Wardan, a member of the prosecution team, said that the charges relate to plotting and staging a coup against Yemen’s elected President Abdrabu Mansur Hadi and for forming the Houthi militia, also known as Ansar Allah.

The prosecution alleges that Abdulmalik Al Houthi formed the rebel group in collaboration with Hezbollah and military experts affiliated with the Iranian Revolutionary Guards.

“The indictment included charges of carrying out a coup against the Republican system of Yemen and its authorities by force and violence and placing the president of the republic and the government under house arrest in an attempt to kill Yemen’s legitimate president, in addition to establishing illegal relations with Iran aiming to damage the status of Yemen politically, economically and diplomatically,” Mr Wardan said.

The trial follows years of work by the Yemeni judiciary to gather evidence and document crimes committed by the Houthi militia and its leaders.

“This trial was held in response to demands by the Yemeni parliament and by human rights advocates and lawyers,” Mr Wardan said. “It’s true the timing is late, but holding the trial is a step on the right track,” he added.

Lawyers said pressure from the people pushed the government’s decision to start the trial nearly six years after the Houthis captured Sanaa in late 2014.

"The government decided to hold the trial under pressure from human rights advocates, journalists and the families of the detainees in Houthi prisons," a prominent lawyer based in Sanaa told The National.

“I think the government wouldn’t have commenced such trials unless there is much pressure on it to do so,” the lawyer said.

Months of fighting preceded the Houthis sudden breakthrough to take the capital in late 2014, imprisoning President Hadi and other government officials and seizing power. Mr Hadi escaped to Aden and then Riyadh where he rallied the support of Arab neighbours who formed the Saudi-led coalition to restore the government and drive back the Houthis.

Five years later, the country has been battered and fractured by the conflict and now suffers what the UN describes as the world’s worst humanitarian disaster.

Earlier this year, the coalition called a unilateral ceasefire to help the country try and stop the coronavirus pandemic. However, the rebels rejected the move and continued their offensives leading the coalition to resume operations last week.

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FIXTURES

Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan

The top two teams qualify for the World Cup

Classification matches 
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.

Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place play-off

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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. 

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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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