The UK office of Ayatollah Ali Khamenei, Iran's supreme leader, received more than £100,000 of British taxpayers’ money under the Covid-19 furlough scheme. EPA
The UK office of Ayatollah Ali Khamenei, Iran's supreme leader, received more than £100,000 of British taxpayers’ money under the Covid-19 furlough scheme. EPA
The UK office of Ayatollah Ali Khamenei, Iran's supreme leader, received more than £100,000 of British taxpayers’ money under the Covid-19 furlough scheme. EPA
The UK office of Ayatollah Ali Khamenei, Iran's supreme leader, received more than £100,000 of British taxpayers’ money under the Covid-19 furlough scheme. EPA

London office of Iran's supreme leader given more than £100,000 in furlough cash


Nicky Harley
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  • Arabic

A London Islamic centre run by the UK representative of Ayatollah Ali Khamenei, Iranian supreme leader, benefited from more than £100,000 of the British government's Covid-19 furlough scheme.

In its annual accounts filed last month, the Islamic Centre of England revealed Britain gave the group £109,476 ($149,000) last year under its Coronavirus Job Retention Scheme.

The charity, whose 2021 accounts show it has more than £4.2 million in reserve, runs a mosque and cultural office in west London.

The centre, which serves as the UK office for Mr Khamenei, would have been forced to suspend worship and many other activities during the Covid-19 lockdowns in 2020 and earlier this year.

Last year it was given an official warning by the charity regulator after a speaker appeared to break terrorism laws by praising Qassem Suleimani as a great martyr after he was killed by a US drone strike.

The Islamic Centre of England held a candlelit vigil on January 3, 2020, to mourn the death of the commander of the Quds Force in the air strike in Baghdad.

A speaker at the event was filmed praising Gen Suleimani, who had been subject to UK sanctions for terrorism and terrorist-financing since 2011.

Ayatollah Ali Khamenei, the Iranian supreme leader, visiting the family of Iranian Revolutionary Guards' commander Qasem Suleimani in Tehran after he was killed in an air strike. AFP
Ayatollah Ali Khamenei, the Iranian supreme leader, visiting the family of Iranian Revolutionary Guards' commander Qasem Suleimani in Tehran after he was killed in an air strike. AFP

The UK’s terrorism laws make it an offence to encourage and glorify terrorism and it carries a penalty of up to 15 years in jail.

The charity has been told to review all statements about Gen Suleimani on its website to ensure they are lawful.

“Any charity being associated with terrorism is completely unacceptable and we are concerned by the corrosive effect this might have on public confidence in this and other charities,” Tim Hopkins, a senior investigator at the Charity Commission, said last year.

“Charities exist to improve lives and strengthen society, so it is vital that trustees honour their responsibility to act in the best interests of their charity at all times.

“We expect the charity’s trustees to comply with the required actions to address our concerns.”

The UK has been pursuing Iran to release the British-Iranian Nazanin Zaghari-Ratcliffe, who was arrested in Tehran in April 2016 as she prepared to fly back to London after visiting her parents with her young daughter.

She was sentenced to jail for plotting against the regime, charges that the family and the British government dismiss as fabricated.

Richard Ratcliffe, the husband of Nazanin Zaghari-Ratcliffe, has gone on hunger strike for the second time in two years and intends to sleep in a tent after his wife lost her latest appeal in Iran. EPA
Richard Ratcliffe, the husband of Nazanin Zaghari-Ratcliffe, has gone on hunger strike for the second time in two years and intends to sleep in a tent after his wife lost her latest appeal in Iran. EPA

She was released into house arrest in March 2020 but is barred from leaving the country. She was sentenced to a further year behind bars in April and remains with her parents in Tehran.

The family of Ms Zaghari-Ratcliffe and another jailed British dual citizen, Anoosheh Ashoori, have linked their cases to a decades-old unpaid UK debt of about £400 million after an aborted arms deal before the 1979 revolution.

The dispute is continuing through the courts and the UK says repayment is complicated by sanctions imposed on Iran.

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Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour

Favourite Hobby: Serving poor people 

Favourite Book: The Alchemist by Paulo Coelho

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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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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Updated: November 04, 2021, 12:16 PM