Hurricane Sally carries 160kph winds as it moves towards US Gulf coast


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Hurricane Sally drew closer to the US Gulf coast on Tuesday morning, taking heavy rain and surging water ahead of its expected landfall as a Category 2 hurricane, with the chance of strengthening possible.

The second strong storm in less than a month to threaten the region, Sally's winds increased to 160 kilometres per hour, and by late Monday it was 90 miles east of the mouth of the Mississippi River, the National Hurricane Centre (NHC) said.

It could hit the Mississippi and Alabama coasts on Tuesday with winds of up to 177kph, on the cusp of becoming a Category 3 hurricane on the five-step Saffir-Simpson scale of intensity, the NHC said.

Hurricanes are considered to have the potential for great damage when they carry sustained winds of more than 179kph.

Mississippi and Louisiana called for evacuations of low-lying areas. President Donald Trump issued an emergency disaster declaration for both states. Alabama closed the state's beaches and recommended residents be moved from low-lying areas.

Sandy Stimpson, the mayor of Mobile Alabama, told residents he expected a "tremendous amount of flooding" and said the city was barricading intersections that were likely to flood.

Ports, schools and businesses along the coast closed. The US Coast Guard restricted travel on the lower Mississippi at New Orleans to the Gulf, and closed the ports of Pascagoula and Gulfport in Mississippi, and Mobile.

Energy companies buttoned up or halted oil refineries and pulled workers from offshore oil and gas production platforms.

The hurricane was expected to drop between eight and 16 inches of rain on the coast, with isolated 24-inch downpours, and cause widespread river flooding.

Mississippi appears more likely for landfall, but Sally's biggest threat is that it will be a rainmaker across a wide part of the Gulf coast, with three to four inches in areas as far inland as Atlanta, Georgia, said Jim Foerster, chief meteorologist at DTN, an energy, agriculture and weather data provider.

Sally is the 18th named storm in the Atlantic this year and will be the eighth of tropical storm or hurricane strength to hit the US – something "very rare if not a record", said Dan Kottlowski, senior meteorologist at AccuWeather, noting that accurate data on past tropical storms can be sketchy.

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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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  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
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  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
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T20 squad: Eoin Morgan (capt), Jonny Bairstow, Tom Banton, Sam Billings, Pat Brown, Sam Curran, Tom Curran, Joe Denly, Lewis Gregory, Chris Jordan, Saqib Mahmood, Dawid Malan, Matt Parkinson, Adil Rashid, James Vince

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