Record-smashing heat gripped much of the western US and Canada on Monday, forcing schools and Covid-19 testing centres to close and causing the postponement of an Olympic qualifying event. Forecasters warned of worse to come.
In the town of Lytton in British Columbia, the temperature on Sunday eclipsed Canada’s record high, with the mercury touching 46.6°C.
"It's the first time it's been this hot," Ahmed Habib, owner of 2 Rivers Inn in Lytton, told The National.
“Many people are outside sweating. I went out to the police station yesterday and everyone outside was sweating.”
Mr Habib said the local tourism industry, which includes outdoor activities such as whitewater rafting, might take a hit “because people can’t go out and tour, they can only stay inside”.
In a region unaccustomed to sweltering heat, stores reportedly sold out of portable air conditioners and fans, while cities opened emergency cooling centres and outreach workers handed out bottles of water and hats.
Several Covid-19 vaccination clinics were shut and schools announced they would close on Monday.
“A prolonged, dangerous and historic heatwave will persist through this week,” Environment Canada said.
It forecast temperatures near 40°C in several regions.
The agency issued alerts for British Columbia, Alberta and parts of Saskatchewan, Yukon and the Northwest Territories.
Farther south, in the US city of Eugene, Oregon, a temperature of 43.3°C forced organisers to postpone the final day of US Olympic athletics trials. Afternoon events were moved to the evening.
Because of climate change, record-setting temperatures are becoming more frequent. Globally, the decade to 2019 was the hottest registered, and the past five years were the warmest on record.
On Sunday in Seattle, the temperature hit 40°C, surprising residents not used to hot weather.
Doug Farr, manager of the city’s weekly Ballard Farmers Market, said the site had to close early on Sunday because of the heat, something it normally has to do only for snow.
“I think this is the first time we’ve ever closed early because of the heat,” he said.
Oregon’s biggest city, Portland, hit 44.4°C on Sunday, the US National Weather Service said, breaking a city record set a day earlier. Officials shut down the light rail and tram system because of the intense heat.
Nick Bond, an atmospheric scientist at the University of Washington, said the freak weather event was not entirely due to climate change, but was exacerbated by it.
“Climate change is a factor here, but definitely a secondary one,” he said.
“The main thing going on is this highly unusual weather pattern, but that being said, climate change is real, our temperatures have warmed here, especially summer night-time temperatures, and so that has just kind of raised the baseline and made this heat event that much more severe.”
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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EMERGENCY PHONE NUMBERS
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries