In this still image from a US State Department video, US Secretary of State Mike Pompeo delivers a virtual speech to the Manama Dialogue conference on regional security being held in Manama, Bahrain. AFP PHOTO / US State Department
In this still image from a US State Department video, US Secretary of State Mike Pompeo delivers a virtual speech to the Manama Dialogue conference on regional security being held in Manama, Bahrain. AFP PHOTO / US State Department
In this still image from a US State Department video, US Secretary of State Mike Pompeo delivers a virtual speech to the Manama Dialogue conference on regional security being held in Manama, Bahrain. AFP PHOTO / US State Department
In this still image from a US State Department video, US Secretary of State Mike Pompeo delivers a virtual speech to the Manama Dialogue conference on regional security being held in Manama, Bahrain.

US cancels cultural exchange programmes with China


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The US State Department has ended five cultural exchange programmes with China, calling them "soft power propaganda tools".

The department "terminated" the Policymakers Educational China Trip Programme, the US-China Friendship Programme, the US-China Leadership Exchange Programme, the US-China Transpacific Exchange Programme and the Hong Kong Educational and Cultural Programme, Secretary of State Mike Pompeo said in a statement on Friday.

The programmes were set up under the Mutual Educational and Cultural Exchange Act – a 1961 law signed by President John F Kennedy and aimed at boosting academic and cultural exchanges with foreign countries.

"While other programmes funded under the auspices of the MECEA are mutually beneficial, the five programmes in question are fully funded and operated by the [Chinese] government as soft power propaganda tools," Mr Pompeo said.

"They provide carefully curated access to Chinese Communist Party officials, not to the Chinese people, who do not enjoy freedoms of speech and assembly."

He said the US welcomed reciprocal and fair exchange of cultural programmes with Chinese officials and people but said that one-way programmes such as these were not mutually beneficial.

The State Department also announced on Friday that it would deny visas to Chinese citizens linked to overseas influence operations involving violence and other means of intimidation.

Mr Pompeo said the restrictions would apply to Chinese Communist Party officials or anyone else taking part in such propaganda or influence campaigns affiliated with the United Front Work Department.

The United Front has been involved in efforts to put pressure on people outside China's borders who raise concerns about human rights abuses in the Uighur region, Tibet and elsewhere. Its “coercive tactics” have included publicly releasing personal details about critics and their family members online as a means of intimidation, Mr Pompeo said.

The measure is intended to show that “those responsible for actions that contravene the rules-based international order are not welcome in the United States,” he said.

The restrictions are the latest punitive measure taken by the US against China’s leadership and economy in response to sharpening disputes over human rights, the coronavirus pandemic, trade, technology, Taiwan and a host of other issues.

Earlier this week, the US also moved to tighten visa rules on members of the Chinese Communist Party. The State Department said the action was part of ongoing efforts to protect the country from the party’s “malign influence”.

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
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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

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

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