Canadian Foreign Minister Melanie Joly, US Secretary of State Antony Blinken and British Foreign Secretary James Cleverly chat after the G7 working session. Getty Images
Canadian Foreign Minister Melanie Joly, US Secretary of State Antony Blinken and British Foreign Secretary James Cleverly chat after the G7 working session. Getty Images
Canadian Foreign Minister Melanie Joly, US Secretary of State Antony Blinken and British Foreign Secretary James Cleverly chat after the G7 working session. Getty Images
Canadian Foreign Minister Melanie Joly, US Secretary of State Antony Blinken and British Foreign Secretary James Cleverly chat after the G7 working session. Getty Images

G7 leaders say Tehran failed on nuclear deal as group condemns Iran


Gillian Duncan
  • English
  • Arabic

The world’s seven wealthiest democracies have said Iran has not made the “necessary decisions” on a nuclear deal, despite “many months of intense negotiations”.

In a statement issued on Friday, the Group of Seven said Iran has failed to return to the table to discuss the nuclear agreement, formally known as the Joint Comprehensive Plan of Action (JCPOA), which puts limits on the country's nuclear programme in exchange for sanctions relief.

“We note that despite many months of intense negotiations on a return to the JCPOA, Iran has not made the necessary decisions,” they said.

They “strongly rejected” Iran’s practice of detaining dual and foreign citizens, while also condemning Tehran's continued “destabilising activities” in and around the Middle East.

The G7 — an informal bloc of industrialised democracies made up of the US, Canada, France, Germany, Italy, Japan and the UK — also pledged to “stand firmly with Ukraine for as long as it takes”.

Ukraine and its western allies have accused Iran of sending “kamikaze” drones, or unmanned aerial vehicles (UAVs), to Russia, which have been used to devastating effect in attacks on Ukrainian infrastructure.

Iran denies the charge.

Kyiv said last week that Ukrainian forces had shot down more than 300 Iranian-made drones so far.

Iranian-made drones have reportedly damaged up to 40 per cent of Ukraine's power system and Ukrainian authorities warned residents that they may face hours of electricity cuts due to limited supplies.

The G7 also said any use of chemical, biological or nuclear weapons by Russia would be met with “severe consequences” and renewed their call on Moscow to end its war.

“Russia's irresponsible nuclear rhetoric is unacceptable,” the G7 foreign ministers said in a statement after two days of talks in the German city of Muenster.

A G7 official, speaking on the condition of anonymity, said the group agreed to co-ordinate their support for repairing, restoring and defending Ukraine's critical energy and water infrastructure.

Flags wave on the walls in Muenster during the G7 Foreign Ministers Meeting. AFP
Flags wave on the walls in Muenster during the G7 Foreign Ministers Meeting. AFP

Ukrainian Foreign Minister Dmytro Kuleba joined the G7 discussion via video link.

“They discussed what needs Ukraine was facing as it heads into the winter and agreed that there needed to be a G7 co-ordinating mechanism to help Ukraine repair, restore and defend its critical energy and water infrastructure,” a G7 official, speaking on the condition of anonymity, told reporters.

“That's something that will be a core focus of this group in the days and weeks ahead.”

The countries also discussed the state of the battlefield to figure out which weapons to provide to Kyiv, although this time the focus was more on assistance that would allow Ukraine to defend itself from the intensifying Russian attacks on its energy and water infrastructure, said the official.

The assistance the G7 provides will allow Kyiv to defend itself against and respond to Russian attacks on civilian infrastructure, the official said.

The group also said it remained “seriously concerned” about the situation in and around the East and South China Seas and it aimed for “constructive co-operation” with China.

It also “reaffirmed” the importance of peace and stability across the Taiwan Strait.

The group said it strongly condemned recent missile launches by North Korea.

“We, the G7 members, strongly condemn the unprecedented series of unlawful ballistic missile launches,” the foreign ministers from the G7 countries said in a joint statement.

It added that “any nuclear test or other reckless action must be met with a swift and united and robust international response.”

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

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

Updated: November 04, 2022, 2:55 PM