The US military's Central Command released this image showing what it described as Iranian-made missile components bound for the Houthis, seized off a vessel in the Arabian Sea. Photo: Centcom via AP
The US military's Central Command released this image showing what it described as Iranian-made missile components bound for the Houthis, seized off a vessel in the Arabian Sea. Photo: Centcom via AP
The US military's Central Command released this image showing what it described as Iranian-made missile components bound for the Houthis, seized off a vessel in the Arabian Sea. Photo: Centcom via AP
The US military's Central Command released this image showing what it described as Iranian-made missile components bound for the Houthis, seized off a vessel in the Arabian Sea. Photo: Centcom via AP

Yemen's Houthis to be relisted as terrorist group, report says


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The US administration of President Joe Biden is expected to announce plans to redesignate the Iranian-backed Houthi rebels in Yemen as specially designated terrorists, AP reported on Tuesday.

The Houthis have launched dozens of attacks on commercial vessels in the Red Sea. Earlier on Tuesday, US forces struck Houthi anti-ship missile launchers in Yemen.

The group says it has attacked the ships in response to Israel's military operations in Gaza after Hamas's October 7 attack on Israel.

Secretary of State Antony Blinken delisted the Houthis as a foreign terrorist organisation and as specially designated global terrorists in February 2021, as the Biden administration sought to make it easier to get humanitarian aid into Yemen.

In its waning days, the Trump administration designated the Houthis a foreign terrorist organisation, despite the strong objections of human rights and humanitarian aid groups.

The foreign terrorist designation barred Americans and people and organisations subject to US jurisdiction from providing “material support” to the Houthis.

The rights groups said this would result in an even greater humanitarian catastrophe in Yemen.

Earlier on Tuesday, US National Security Adviser Jake Sullivan warned that Washington remains “vigilant” against the possibility that recent violence in the Red Sea may be “on a path of escalation".

But Mr Sullivan, who spoke at the World Economic Forum in Davos, said Washington “sees a pathway” towards working with the Houthis.

“We have to guard against and be vigilant against the possibility that, in fact, rather than heading towards de-escalation, we are on a path of escalation that we have to manage,” Mr Sullivan said.

He said managing regional escalation “to the maximum extent possible” and getting “on a path of diplomacy” remains “ a central locus” of Washington’s strategy in the Middle East amid the continued threat of Israel’s war in Gaza spilling into the wider region.

Ellie Sennett contributed to this report.

Emirates exiles

Will Wilson is not the first player to have attained high-class representative honours after first learning to play rugby on the playing fields of UAE.

Jonny Macdonald
Abu Dhabi-born and raised, the current Jebel Ali Dragons assistant coach was selected to play for Scotland at the Hong Kong Sevens in 2011.

Jordan Onojaife
Having started rugby by chance when the Jumeirah College team were short of players, he later won the World Under 20 Championship with England.

Devante Onojaife
Followed older brother Jordan into England age-group rugby, as well as the pro game at Northampton Saints, but recently switched allegiance to Scotland.

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

HAJJAN
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Updated: January 17, 2024, 4:52 PM