Memorial during a candlelight vigil at Mel Lastman Square in Toronto, Ontario, Canada, on January 09, 2020 for the victims of the Ukrainian International Airlines flight PS752 plane crash. Getty
Memorial during a candlelight vigil at Mel Lastman Square in Toronto, Ontario, Canada, on January 09, 2020 for the victims of the Ukrainian International Airlines flight PS752 plane crash. Getty
Memorial during a candlelight vigil at Mel Lastman Square in Toronto, Ontario, Canada, on January 09, 2020 for the victims of the Ukrainian International Airlines flight PS752 plane crash. Getty
Memorial during a candlelight vigil at Mel Lastman Square in Toronto, Ontario, Canada, on January 09, 2020 for the victims of the Ukrainian International Airlines flight PS752 plane crash. Getty

How Iran cover-up stalled downed jet inquiry


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Iran is accused of orchestrating a cover-up during its year-long investigation into the shooting down of a Ukrainian Airlines flight that killed all 176 people on board.

Flight PS752, bound for Kiev, was hit by two Iranian missiles within minutes of take-off from Tehran’s Iman Khomeini International Airport on January 8, 2020, a disaster the regime described as a tragic accident.

As the anniversary looms, Iranian air accident investigators are yet to publish a final report despite concerted pressure from foreign governments to come clean about the circumstances that led to the downing of the civilian airliner carrying passengers from six countries.

Iran says the missile was mistakenly fired by a mobile defence unit positioned on the edge of the airport. Its account includes a series of calamitous blunders by the missile unit, including misaligning the unit by 107 degrees – nearly one third of the compass – and failing to recognise the problem.

The route of the Ukraine International Airlines flight
The route of the Ukraine International Airlines flight

It said the unit then suffered a communications failure that cut it off from its commanders. The regime finally claims that the two surface-to-air missiles were launched at PS752 in direct contravention of orders not to fire until authorised by central command.

The litany of failures was dismissed by the families of the victims who said they knew from day one that it was not human error.

They believe the final definitive report of the disaster has not been published by Iran because it will expose its failure to properly investigate what happened and attribute blame to those responsible.

"We believe that Iran will do anything it can to hide the truth," said Amirali Alavi, a campaigner for the families and whose mother died on the aircraft. "And everybody's looking for answers."

Key questions unanswered include:

  • Who gave the final order to launch the missile attack?
  • How could PS752 have been considered an incoming missile if it was flying from Tehran?
  • Why was airspace open despite Iran launching missile attacks on Iraq just hours before?
  • Why was the PS752 flight delayed for an hour before take-off and on whose orders?
  • Was anybody taken from the plane while it stood on the runway, as claimed by families?
  • Why was there a six-month delay in handing over black box flight recorders?
  • Did Iran warn airlines of the potential risks given the military build-up around Tehran?
  • What systems were in place to stop civilian jets being attacked and why did they not work?

Up to six Iranians face charges over the shooting down of the aircraft but their identities and their positions in the military hierarchy are unknown.

The Canadian report said: “Iran bears a heavy burden of responsibility to be completely comprehensive and transparent in substantiating its explanations with credible, compelling evidence, which has not yet been forthcoming.”

The missile attack on the plane came amid heightened tensions after the assassination in a US drone strike five days earlier of Qassem Suleimani, the head of the Quds Force of the Islamic Revolutionary Guard Corps.

The killing prompted promises of retribution with several volleys of Iranian missiles fired at two air bases in Iraq where US forces were housed just hours before the aircraft was attacked.

But Iran did not close its airspace to civilian aircraft despite airlines from countries including the US, Canada and Australia avoiding the area.

Lawyers for some of the families said Iran was on the highest state of defensive alert and the IRGC was “totally prepared for a fully-fledged war”.

Some relatives of those killed believe the attack was an act of reprisal rather than a blunder calibrated not to spark war with the US. Iran admitted it was responsible only three days after the attack.

International aviation rules give responsibility for investigating the crash to Iran – where the plane came down – which investigators said raised concerns about the independence of the investigation and lessons to be learnt for the sector.

“The party responsible for the situation is investigating itself, largely in secret,” Ralph Goodale, the adviser, wrote in the report. “That does not inspire confidence or trust.”

The families of those killed expressed frustration that Iran has been able to delay publishing the outcome of the inquiry.

Hamed Esmaeilion, a spokesman for The Association of Families of Flight PS752 Victims, said justice had been delayed while they tried to find out exactly what happened.

Mr Esmaeilion, whose wife and daughter died in the crash, said: “Iran is smart enough to know that it's in the driving seat.

“This is so frustrating, because I think the international community has accepted Iran as a normal regime.

“But this is not true. This is not a normal regime. They are criminals, they have done crimes for the last 42 years.

“And the world has decided to tolerate them for some reason. When they commit another crime, you see that nobody condemns it.”

Russia's Muslim Heartlands

Dominic Rubin, Oxford

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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

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

The Bloomberg Billionaire Index in full

1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion

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British Airways: Cancels all direct flights to and from mainland China 

Hong Kong-based Cathay Pacific: Cutting capacity to/from mainland China by 50 per cent from Jan. 30

Chicago-based United Airlines: Reducing flights to Beijing, Shanghai, and Hong Kong

Ai Seoul:  Suspended all flights to China

Finnair: Suspending flights to Nanjing and Beijing Daxing until the end of March

Indonesia's Lion Air: Suspending all flights to China from February

South Korea's Asiana Airlines,  Jeju Air  and Jin Air: Suspend all flights

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(Ahmed 02’, El Shahat 17’, Al Ahbabi 60’)

Results

2.30pm: Expo 2020 Dubai – Conditions (PA) Dh80,000 (Dirt) 1,600m; Winner: Barakka, Ray Dawson (jockey), Ahmad bin Harmash (trainer)

3.05pm: Now Or Never – Maiden (TB) Dh82,500 (Turf) 1,600m; Winner: One Idea, Andrea Atzeni, Doug Watson

3.40pm: This Is Our Time – Handicap (TB) Dh82,500 (D) 1,600m; Winner: Perfect Balance, Tadhg O’Shea, Bhupat Seemar

4.15pm: Visit Expo 2020 – Handicap (TB) Dh87,500 (T) 1,600m; Winner: Kaheall, Richard Mullen, Salem bin Ghadayer

4.50pm: The World In One Place – Handicap (TB) Dh95,000 (T) 1.900m; Winner: Castlebar, Adrie de Vries, Helal Al Alawi

5.25pm: Vision – Handicap (TB) Dh95,000 (D) 1,200m; Winner: Shanty Star, Richard Mullen, Rashed Bouresly

6pm: Al Wasl Plaza – Handicap (TB) Dh95,000 (T) 1,200m; Winner: Jadwal, Dane O’Neill, Doug Watson