Michael Spavor is one of two Canadians who have been held for more than two years in apparent retaliation for Canada's arrest of a senior Chinese telecom executive. AP Photo
Michael Spavor is one of two Canadians who have been held for more than two years in apparent retaliation for Canada's arrest of a senior Chinese telecom executive. AP Photo
Michael Spavor is one of two Canadians who have been held for more than two years in apparent retaliation for Canada's arrest of a senior Chinese telecom executive. AP Photo
Michael Spavor is one of two Canadians who have been held for more than two years in apparent retaliation for Canada's arrest of a senior Chinese telecom executive. AP Photo

Ottawa and Beijing exchange words after Canadian Michael Spavor stands trial in China


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Prime Minister Justin Trudeau expressed concern about the trial of a Canadian citizen in China on Friday.

Michael Spavor, who has been detained in China since December 2018, stood trial in the northern city of Dandong on charges of illegally spying on national secrets and illegally providing state secrets to entities outside of China.

The trial lasted only a few hours and ended without a verdict or sentencing. Canadian consular officials were denied entry to the courtroom, prompting Mr Trudeau to speak out.

“It is disappointing that the trial that Michael Spavor went through and possibly the trial that Michael Kovrig will go through on Monday is happening in secret without transparency, without access by Canadian consular officials,” Mr Trudeau said, referring to another Canadian who is facing similar charges of espionage.

Ottawa says the “two Michaels”, as they are referred to in Canadian media, are victims of arbitrary detention and are being tried in retaliation for Canada’s arrest of Huawei executive Meng Wanzhou in December 2018.

Beijing denies this. A representative for the Chinese Embassy in Ottawa called the accusations “fact distorting”.

In a statement released on the embassy’s website, the representative said, “Michael Kovrig and Michael Spavor were arrested and prosecuted in accordance with the law for suspected crimes undermining China's national security. China's judicial authorities have been dealing with the cases independently and ensuring their lawful rights, including consular visits to them.”

Tension between the two countries has been high since the arrests in 2018, and the trial of Mr Spavor and the coming one of Mr Kovrig are likely to further complicate bilateral relations.

“It’s an indication of a change of season, that we’re going into a winter in bilateral relations,” said Paul Evans, a professor in the school of public policy and global affairs at the University of British Columbia.

Mr Trudeau has looked to Washington for help in securing the release of Mr Spavor and Mr Kovrig. “We will continue to work very closely with all our allies, including the United States, on trying to resolve the situation,” he said.

US Secretary of State Antony Blinken held face-to-face meetings with his Chinese counterpart in Anchorage, Alaska, on Thursday and Friday. A deputy representative for the US State Department reiterated calls for China to release Mr Spavor and Mr Kovrig, calling their detention "arbitrary and baseless".

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

The specs: 2018 Nissan Patrol Nismo

Price: base / as tested: Dh382,000

Engine: 5.6-litre V8

Gearbox: Seven-speed automatic

Power: 428hp @ 5,800rpm

Torque: 560Nm @ 3,600rpm

Fuel economy, combined: 12.7L / 100km

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

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While you're here
Women%E2%80%99s%20T20%20World%20Cup%20Qualifier
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Roll of honour: Who won what in 2018/19?

West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles

UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up  Jebel Ali Dragons

Dubai Rugby Sevens: Winners – Dubai Hurricanes; Runners-up – Abu Dhabi Harlequins

UAE Conference: Winners  Dubai Tigers; Runners-up  Al Ain Amblers

Our legal consultants

Name: Hassan Mohsen Elhais

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

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
Oppenheimer
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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

If you go

The flights

There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.

The trip

Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.

The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.

 

Our family matters legal consultant

Name: Hassan Mohsen Elhais

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