UN chief fires ‘bad news’ starter pistol on climate talks


James Reinl
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Days before key climate talks in Scotland, UN Secretary General Antonio Guterres has said that global efforts to cut emissions of planet-heating gases and other steps are still not enough to avert “climate catastrophe”.

Speaking in New York on Tuesday, the secretary general said the climate pledges made before the Cop26 meeting in Glasgow would still result in 2.7°C of global warming — more than the planet can handle safely.

He spoke at the release of the UN’s 2021 Emissions Gap Report, which tracks the climate commitments made by governments and assesses whether they are enough to keep global warming in check.

“Today I have bad news,” Mr Guterres told reporters. “Less than one week before Cop26 in Glasgow, we are still on track for climate catastrophe.”

The global climate summit, hosted by British Prime Minister Boris Johnson, kicks off in Glasgow on October 31. Britain has cast the summit as the last big chance for countries to commit to slowing rising temperatures.

This week’s UN report tracks progress towards a 2015 deal in Paris to cut pollution and limit global warming to 1.5°C over pre-industrial times this century and lower the risk of fires, droughts, floods and other weather disasters.

The UN says that the latest round of climate pledges that are being unveiled before the Glasgow meeting — the so-called Nationally Determined Contributions — still fall badly short of what is needed.

“The new plans will reduce predicted 2030 emissions by just 7.5 per cent beyond what was already committed,” said Mr Guterres.

“As the report demonstrates — the world would need seven times more ambition to keep on the 1.5°C track.”

Under the Paris deal, governments are expected to phase out coal and other carbon-emitting dirty fossil fuels in favour of solar, wind and other cleaner energy sources and to clean up industry, transport, agriculture and other sectors.

Mr Guterres blamed a “leadership gap” and urged the politicians headed to Glasgow to raise their ambitions for tackling climate change, saying the “era of half measures and hollow promises must end”.

How to get there

Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
 

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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Updated: October 26, 2021, 2:46 PM