Brazil's presidential election is heading for a run-off after no candidate achieved more than a 50 per cent majority in the first round of voting.
As millions turned out to vote, far-right President Jair Bolsonaro's surprising first round strength upset leftist Luiz Inacio Lula da Silva's hopes of winning outright.
With 99.7 per cent of electronic votes counted, Lula was ahead with 48.4 per cent of votes versus 43.3 per cent for Mr Bolsonaro, Brazil's electoral authority reported on Sunday.
As neither got a majority of support, the race will go to a second-round vote on October 30.
Several opinion surveys had shown Mr da Silva, popularly referred to as Lula and who was president from 2003 to 2010, leading Mr Bolsonaro by 10 to 15 percentage points ahead of Sunday's vote — a much tighter result than expected in the world's fourth-largest democracy.
Mr Bolsonaro had questioned polls that showed him losing in the first round, saying they did not capture enthusiasm he saw on the campaign trail. He has also attacked the integrity of Brazil's electronic voting system without evidence, suggesting he might not concede if he lost.
Observers had said a wide margin of victory for Mr da Silva could sap Mr Bolsonaro of support to challenge the electoral results. But Sunday's vote, extending a tense and violent election by another four weeks, revitalised his campaign.
“The extreme right is very strong across Brazil,” Carlos Melo, a political scientist at the Insper business school, told Reuters.
“Lula's second-round victory is now less likely. Bolsonaro will arrive with a lot of strength for re-election.”
Mr da Silva put an optimistic spin on the result, saying that it would only postpone his victory and that he looked forward to going head-to-head with Mr Bolsonaro in a debate.
“We can compare the Brazil he has built to the one we built,” he told reporters.
Mr Bolsonaro was also calm and confident in his post-election remarks, disparaging polling firms for failing to gauge his support.
“I plan to make the right political alliances to win this election,” he told journalists, pointing to significant advances his party made in Congress in Sunday's general election.
His right-wing allies won 19 of the 27 seats that were up from grabs in the Senate, and initial returns suggested a strong showing for his base in the lower house.
Outside Mr Bolsonaro's family home in Rio de Janeiro's Barra da Tijuca neighbourhood the mood was upbeat.
Maria Lourdes de Noronha, 63, said only fraud could prevent a Bolsonaro victory, adding that “we will not accept it” if he loses. “The polls in our country, the media, and journalists, are liars, rascals, shameless,” she said.
Although Mr da Silva left the presidency 12 years ago with record popularity, he is now disliked by many Brazilians after he was convicted of accepting bribes and jailed during the last election.
His conviction was overturned by the Supreme Court, allowing him to run again for president this year, along with nine other candidates from smaller parties.
Scandals
A career politician, Mr Bolsonaro rode a backlash against Mr da Silva Workers Party to victory in 2018, uniting strands of Brazil's right, from evangelical Christians to farming interests and pro-gun advocates.
He has dismantled environmental and indigenous protections to the delight of commercial farmers and wildcat miners, while appealing to social conservatives with an anti-gay and anti-abortion agenda.
His popularity has suffered since the coronavirus pandemic, which he called a “little flu” before Covid-19 killed 686,000 Brazilians. Corruption scandals also forced ministers out of his government and focused a harsh spotlight on his sons.
Yet Sunday's vote shows his support is far from collapsing.
Mr da Silva's proposals for Brazil have been light on details, but he promises to improve the fortunes of Brazil's poor and working classes, as he did as president from 2003 to 2010, when he lifted millions out of poverty and burnished Brazil's global influence.
While in power, Mr da Silva's approval rating soared as he expanded Brazil's social safety net amid a commodity-driven economic boom. But in the years after he left office, the economy collapsed, his hand-picked successor was impeached and many of his associates went to prison as part of a vast corruption scandal.
Mr da Silva spent 19 months in jail for bribery convictions that were thrown out by the Supreme Court last year.
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How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
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Sara Suleri, with an introduction by Kamila Shamsie
Penguin
COMPANY PROFILE
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How do Sim card scams work?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards by claiming to be the victim, often pretending their phone has been lost or stolen in order to secure a new Sim.
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
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
THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
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