Pedestrians pass in front of a building in ruins, destroyed during the earthquake in Saint-Louis-du-Sud, Haiti, on August 17, 2021. Bloomberg
Pedestrians pass in front of a building in ruins, destroyed during the earthquake in Saint-Louis-du-Sud, Haiti, on August 17, 2021. Bloomberg
Pedestrians pass in front of a building in ruins, destroyed during the earthquake in Saint-Louis-du-Sud, Haiti, on August 17, 2021. Bloomberg
Pedestrians pass in front of a building in ruins, destroyed during the earthquake in Saint-Louis-du-Sud, Haiti, on August 17, 2021. Bloomberg

Storms and floods compound misery for Haitians as earthquake toll rises


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The death toll from a 7.2-magnitude earthquake that struck Haiti has risen to 1,941, the Caribbean nation's civil protection agency said on Tuesday, as a tropical storm brought torrential downpours on survivors already coping with catastrophe.

More than 9,900 people were wounded when the quake struck the southwestern part of the Caribbean nation on Saturday, about 160 kilometres to the west of the capital Port-au-Prince, according to the updated toll.

With more than 60,000 homes destroyed and 76,000 damaged, the UN children's agency Unicef said that more than half a million children have been affected by the disaster.

In the coastal town of Les Cayes residents began building makeshift shelters on a football field despite gushing winds and pouring rain as Tropical Storm Grace passed over the country.

So few structures remained standing that people had to relieve themselves in city streets, according to Magalie Cadet, 41, who only had a shower cap to protect against the rain.

Aftershocks continued to rock the ground in Les Cayes days after the quake, further terrifying the residents.

"Yesterday evening, I took shelter near a church, but when I heard the ground shake again, I ran to return here," said Ms Cadet.

The US National Hurricane Centre warned of flash and urban flooding, and possible mudslides as Grace lashed the impoverished country with up to 38 centimetres of rain.

Haiti officials warned residents to watch out for buildings that are showing cracks from the earthquake because they could collapse under the weight of water.

Despite the rain, drinking water was running short. In the coastal community of Pestel, over 1,800 cisterns with drinking water have cracked or been destroyed in the quake.

In 2010, in the aftermath of a horrific earthquake that killed 200,000 people, Haiti saw a deadly cholera outbreak caused by sewage from a UN base.

Natacha Lormira tried to build a shelter for herself using a torn piece of tarp attached to a thin piece of wood.

"I don't want to hide under a gallery or under a corner of a wall because we have seen people die under wall panels," said Ms Lormira. "We have resigned ourselves that it's easier to be wet than dead."

Wet from the constant rain, 28-year-old Vladimir Gilles tried insert several pieces of bamboo deep into the ground to build a cover for his wife and child.

Mr Gilles said he needs some tarp to keep his family dry, but the government "is not helping."

"My house is destroyed, I have nowhere to sleep," he said.

The government has declared a month-long state of emergency in the four provinces affected by the quake.

Rescue workers have pulled out 34 people alive from the rubble in the past 48 hours, authorities said.

Any official rescue efforts in one of the world's poorest countries are even further complicated by political chaos raging there a month after the assassination of president Jovenel Moise.

Tips for SMEs to cope
  • Adapt your business model. Make changes that are future-proof to the new normal
  • Make sure you have an online presence
  • Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
  • Open communication with customers to see how they are coping and be flexible about extending terms, etc
    Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
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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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Updated: August 17, 2021, 10:35 PM