The Interview, a movie starring Seth Rogen and James Franco, has been withdrawn after cybercriminals hacked Sony. Photo: Ed Araquel / Sony
The Interview, a movie starring Seth Rogen and James Franco, has been withdrawn after cybercriminals hacked Sony. Photo: Ed Araquel / Sony
The Interview, a movie starring Seth Rogen and James Franco, has been withdrawn after cybercriminals hacked Sony. Photo: Ed Araquel / Sony
The Interview, a movie starring Seth Rogen and James Franco, has been withdrawn after cybercriminals hacked Sony. Photo: Ed Araquel / Sony

Cyber-terrorism and overreaction


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It started as the embarrassing leak of information from Sony Entertainment Pictures’ internal network and produced weeks of juicy revelations dispersed through the internet. It has now become a full-scale diplomatic incident, with US president Barack Obama vowing a “proportionate” response to an alleged cyber-attack by North Korea. Pyongyang, it is alleged, wanted to put pressure on the studio to cancel the release of a satirical film that depicts the assassination of North Korean leader Kim Jong-Un and used sabotage and information theft to devastating effect. But this hasn’t been conclusively proved and North Korea says the allegations are groundless and has offered a joint investigation with the US. Whoever did it, the saga raises a number of troubling questions. Has the world just witnessed an act of cyber- war and if so, what can the US or anybody else do about it?

There are enough prominent people engaged in a lot of fighting talk. Newt Gingrich, former speaker of the US House of Representatives, tweeted that America had “lost its first cyber-war”. American lawyer Alan Dershowitz declared that the hack was “Pearl Harbor on the First Amendment”, the US constitutional guarantee of freedom of expression. But the real experts are more realistic.

They say the Sony hack doesn’t qualify under standard definitions of cyberterrorism – it was bad, but not so bad that it caused death, physical destruction or threatened national security. Even if North Korea was found guilty, what could the US do to punish it? Tough sanctions are already in place and Washington doesn’t stoop to diplomatic relations with Pyongyang. It could, perhaps, put it back on its State Sponsors of Terrorism list but that is no great deterrent.

That said, cyber-war is a serious subject and Nato, which was built to deal with conventional war, has put years of thought into framing guidance. Its Tallinn Manual is named for the capital of Estonia, which has suffered numerous cyber-attacks from its neighbour Russia. Interestingly though, the manual’s editor, international law professor Michael Schmitt, says the Sony hack doesn’t qualify as an armed attack. So isn’t talk of retribution virtual reality machismo?

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THE BIO: Martin Van Almsick

Hometown: Cologne, Germany

Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)

Favourite dessert: Umm Ali with dark camel milk chocolate flakes

Favourite hobby: Football

Breakfast routine: a tall glass of camel milk

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

Factfile on Garbine Muguruza:

Name: Garbine Muguruza (ESP)

World ranking: 15 (will rise to 5 on Monday)

Date of birth: October 8, 1993

Place of birth: Caracas, Venezuela

Place of residence: Geneva, Switzerland

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4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
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Favourite holiday destination: I really enjoyed Sri Lanka and Vietnam but my dream destination is the Maldives.

Favourite food: My mum’s Chinese cooking.

Favourite film: Robocop, followed by The Terminator.

Hobbies: Off-roading, scuba diving, playing squash and going to the gym.

 

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The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

JAPAN SQUAD

Goalkeepers: Masaaki Higashiguchi, Shuichi Gonda, Daniel Schmidt
Defenders: Yuto Nagatomo, Tomoaki Makino, Maya Yoshida, Sho Sasaki, Hiroki Sakai, Sei Muroya, Genta Miura, Takehiro Tomiyasu
Midfielders: Toshihiro Aoyama, Genki Haraguchi, Gaku Shibasaki, Wataru Endo, Junya Ito, Shoya Nakajima, Takumi Minamino, Hidemasa Morita, Ritsu Doan
Forwards: Yuya Osako, Takuma Asano, Koya Kitagawa