The US Senate cleared two major bills sanctioning Lebanese militant group Hezbollah, passing both unanimously with bipartisan support.
Lawmakers sent the “Hezbollah International Financing Prevention Amendments Act of 2017” (HIFPAA) to President Donald Trump's desk, who is expected to sign in it into law in the coming days.
The HIFPAA and the “STOP Using Human Shields Act” (known as STOP) unanimously passed the US Senate, clearing the way for sanctions that would target the Iranian-funded group.
The HIFPAA legislation will go after foreign individuals and companies that voluntarily provide financial, material or technological support to Hezbollah and its affiliates. It targets Hezbollah-controlled social and financial organisations such as Bayt al Mal, the Islamic Resistance Support Association, Jihad al Binaa, the Foreign Relations Department of Hezballah, Al Manar TV, Al Nour Radio, and the Lebanese Media Group with sanctions.
The bill also requires the president to report to Congress on Hezbollah's transnational activity, including any money laundering and narcotics activities across Latin America, the African continent or Asia and Europe. The bill also goes after state sponsors of the Lebanese party.
The Senate also passed the human shields prevention act, to impose sanctions on groups such as Hezbollah, Hamas and Al Qaeda which it accuses of using civilians as human shields in conflict. The bill eliminated a requirement for the US President to go to the UN Security Council and enact a Human Shields resolution. It will now go to the House of Representatives for another vote before being referred to the president's desk.
Tyler Stapleton, deputy director of congressional relations at the Foundation for the Defence of Democracies, told The National that unanimous support for the bills across party lines shows where Congress stands on Hezbollah. "It means that every Senator thinks targeting Hezbollah's financing is a good policy objective and that sanctioning countries that do business with Hezbollah is worth pursuing," Mr Stapleton said.
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He said, particularly with HIFPAA, “sanctions could also be imposed on the governments of Syria and Lebanon” if they are found facilitating and coordinating funding for Hezbollah.
This pressure may complicate matters for the party inside Lebanon, argued Randa Slim, a director of the track II dialogues programme at the Middle East Institute. Ms Slim, who has extensively studied Hezbollah, told The National that the bills "further complicate Hezbollah's financial situation which has already been weakened by four factors."
These include the costs of Hezbollah’s intervention in Syria; US sanctions on Iran which are cutting into Hezbollah’s money supply from Tehran; fears among Hezbollah’s Lebanese Shia financiers after the arrest and extradition to US of Kassim Tajeddine, a major Hezbollah financier who was arrested in Morocco last year, and worsening economic conditions in Lebanon which put more strains on the group's core constituency.
Asked if the sanctions would affect Hezbollah’s share in the future Lebanese government, Ms Slim did not expect major changes on that front. “This has already been factored into their calculus” she said.
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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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