Adan Chavez, the elder brother of the late President Hugo Chavez, has had sanctions imposed on him by the Trump administration. Credit: Carlos Becerra/Bloomberg
Adan Chavez, the elder brother of the late President Hugo Chavez, has had sanctions imposed on him by the Trump administration. Credit: Carlos Becerra/Bloomberg
Adan Chavez, the elder brother of the late President Hugo Chavez, has had sanctions imposed on him by the Trump administration. Credit: Carlos Becerra/Bloomberg
Adan Chavez, the elder brother of the late President Hugo Chavez, has had sanctions imposed on him by the Trump administration. Credit: Carlos Becerra/Bloomberg

US sanctions eight more Venezuelan officials, including Chavez brother


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The Trump administration on Wednesday imposed sanctions on eight more Venezuelan officials, including the brother of late socialist leader Hugo Chavez, to punish them for helping President Nicolas Maduro to create a new legislative superbody, US officials said.

The United States targeted individual politicians and security figures but stopped short of placing broader financial or "sectoral" sanctions on its vital oil industry – though such actions, the officials told Reuters, are still under consideration.

The new measures announced by the Treasury Department will freeze their US assets, ban them from travel to the United States and prohibit Americans from doing business with them. Washington slapped sanctions on Maduro himself last week following similar action against 13 Venezuelan figures on July 26.

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It marked a further escalation of the US response to Maduro’s crackdown on the opposition and the establishment last week of the new constituent assembly, an all-powerful body run by his Socialist Party loyalists and which has drawn international condemnation.

"President Maduro swore in this illegitimate Constituent Assembly to further entrench his dictatorship," US Treasury Secretary Steven Mnuchin said in a statement. "This regime’s disregard for the will of the Venezuelan people is unacceptable, and the United States will stand with them in opposition to tyranny."

Most prominent among those targeted on Wednesday was Adan Chavez, 64, a physicist and late President Hugo Chavez's elder brother. He is former culture minister, served for nearly a decade as governor of his home state of Barinas and is now secretary of the new assembly’s presidential commission.

Also facing sanctions was Bladimir Armas, a National Guard colonel accused by government critics of human rights abuses.

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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