Turkish President Recep Tayyip Erdogan attends a ceremony in Ankara, Turkey, December 16, 2020. Presidential Press Office/Handout via REUTERS
Turkish President Recep Tayyip Erdogan attends a ceremony in Ankara, Turkey, December 16, 2020. Presidential Press Office/Handout via REUTERS
Turkish President Recep Tayyip Erdogan attends a ceremony in Ankara, Turkey, December 16, 2020. Presidential Press Office/Handout via REUTERS
Turkish President Recep Tayyip Erdogan attends a ceremony in Ankara, Turkey, December 16, 2020. Presidential Press Office/Handout via REUTERS

After sanctions, Congress committee criticises Turkey over six policies


Joyce Karam
  • English
  • Arabic

The US House foreign affairs committee criticised Turkey’s government on Wednesday, singling out six of Ankara's policies that “undermine the Nato alliance".

Departing Democratic committee chairman Eliot Engel and the leading Republican on the committee, Michael McCaul, expressed “grave concern” over relations with Turkey.

“While we continue to see real value in a strong US-Turkey relationship, its destabilising actions need to be more strongly addressed," they said in a joint statement.

"And the United States must work with its European and Nato allies and partners to continue to use all of the tools at their disposal to demand that Turkey reverse course."

They mentioned six policy areas that they hoped Turkey would reverse.

The first was its acquisition of the Russian S-400 missile defence system, which “compromises Nato interoperability and undermines the alliance’s collective defence pledge".

On Monday, the Trump administration took an unprecedented step in imposing sanctions on Ankara over buying and testing the S-400 system from Moscow.

The statement also referred to Turkey's military operation in north-east Syria, which it claimed "risked reversing critical gains by the United States and our local partners in the ongoing counter-ISIS fight, and exacerbated the existing humanitarian crisis".

It accused Turkish President Recep Tayyip Erdogan of fanning the flames of other global conflicts, “reportedly sending Syrian mercenaries to Libya and Nagorno-Karabakh".

The congressmen also mentioned the Eastern Mediterranean conflict, in which they said Ankara was disrupting transatlantic relations.

It “has surveyed for hydrocarbon resources in disputed waters also claimed by Greece, a Nato member, and Cyprus, a key transatlantic partner".

The committee members also mentioned Ankara's relations with the Palestinian militant group Hamas, and that Mr Erdogan "has openly hosted Hamas terrorists in Turkey, including individuals designated by the United States for their terrorist activities".

In August, Mr Erdogan hosted a delegation from Hamas led by its leader, Ismail Haniyeh.

It included deputy chief Saleh Al Arouri, chief of Hamas abroad Maher Salah, the group’s head of Arab and Islamic religions, Ezzat Al Rihiq, and its representative in Turkey, Jihad Yaghmor.

The congressmen also criticised Mr Erdogan’s policies at home, which they said “undermined Turkey’s democratic institutions by consolidating his own power, undermining the independence of Turkey’s judiciary, and … targeting locally employed staff at US consulates with baseless criminal charges".

The statement was issued five weeks before president-elect Joe Biden takes office.

Aaron Stein, director of research at the Foreign Policy Research Institute, wrote this week that the ball was in Turkey’s court to improve relations and offer a compromise to Mr Biden.

“Mr Biden will have to make the case to a sceptical Congress that the relationship with Turkey is worth the headache,” Mr Stein wrote.

“This transactional approach to foreign policy is exactly what Turkish officials have claimed they wanted.

"However, it requires that Ankara offer something to Washington as part of a mutually beneficial exchange."

Mr Erdogan congratulated Mr Biden on his win but the two have not yet spoken.

In 2016, Mr Erdogan was one of the first leaders to call departing President Donald Trump on November 9.

The two men have had a strong personal relationship despite policy disagreements between Washington and Ankara.

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Marathon results

Men:

 1. Titus Ekiru(KEN) 2:06:13 

2. Alphonce Simbu(TAN) 2:07:50 

3. Reuben Kipyego(KEN) 2:08:25 

4. Abel Kirui(KEN) 2:08:46 

5. Felix Kemutai(KEN) 2:10:48  

Women:

1. Judith Korir(KEN) 2:22:30 

2. Eunice Chumba(BHR) 2:26:01 

3. Immaculate Chemutai(UGA) 2:28:30 

4. Abebech Bekele(ETH) 2:29:43 

5. Aleksandra Morozova(RUS) 2:33:01  

BUNDESLIGA FIXTURES

Friday (UAE kick-off times)

Cologne v Hoffenheim (11.30pm)

Saturday

Hertha Berlin v RB Leipzig (6.30pm)

Schalke v Fortuna Dusseldof (6.30pm)

Mainz v Union Berlin (6.30pm)

Paderborn v Augsburg (6.30pm)

Bayern Munich v Borussia Dortmund (9.30pm)

Sunday

Borussia Monchengladbach v Werder Bremen (4.30pm)

Wolfsburg v Bayer Leverkusen (6.30pm)

SC Freiburg v Eintracht Frankfurt (9on)

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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The 12 breakaway clubs

England

Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

Italy
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Spain
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Company Profile:

Name: The Protein Bakeshop

Date of start: 2013

Founders: Rashi Chowdhary and Saad Umerani

Based: Dubai

Size, number of employees: 12

Funding/investors:  $400,000 (2018) 

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Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

MATCH INFO

What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany

Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)

MATCH INFO

Uefa Champions League semi-finals, first leg
Liverpool v Roma

When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome

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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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