Turkey and Iran became embroiled in a diplomatic spat at the weekend over the Turkish president’s recitation of a poem on a visit to Azerbaijan that Tehran regards as support for a secession of Azeri ethnic parts of Iran.
The row between the neighbours began when Turkish President Recep Tayyip Erdogan, who strongly backs Azerbaijan, read parts of the poem at a military parade in the Caucasian country’s capital of Baku on Thursday. The verses that Mr Erdogan read included lines about how a border tore apart ancient Azeri, or Azerbaijani, lands “by force”.
The next day, Iranian Foreign Minister Javad Zarif wrote on Twitter that "President Erdogan was not informed that what he ill-recited in Baku refers to the forcible separation of areas north of Aras from Iranian motherland".
Iranian authorities summoned the Turkish ambassador to complain about Mr Erdogan's "interventionist and unacceptable remarks".
On Saturday, Turkey’s communications director Fahrettin Altun said Iranians had distorted the meaning of the poem “to fuel senseless tensions”. He said the Iranian ambassador to Ankara was summoned to the Turkish foreign ministry late on Friday.
The Turkish and Iranian foreign ministers spoke by telephone later on Saturday. A Turkish foreign ministry official said Mevlut Cavusoglu told Mr Zarif that public statements coming out of Tehran aimed at the Turkish leader were baseless and unacceptable, when other channels of communication were available between the two governments.
Mr Cavusoglu assured Mr Zarif that Mr Erdogan fully respected Iran’s national sovereignty and territorial integrity, according to Iran’s state-run news agency, Irna.
The agency said the Turkish foreign minister explained that the president had not been aware of the sensitivities surrounding the lines he recited in Baku.
Mr Altun said the poem “passionately reflects the emotional experience of an aggrieved people due to Armenia’s occupation of Azerbaijani lands. It does not include any references to Iran”.
Iran’s three north-western provinces – West Azerbaijan, East Azerbaijan and Ardabil – have a predominantly ethnic Azeri population that speaks a Turkic language.
Mr Erdogan visited Baku to attend a parade to celebrate a recent ceasefire agreement that allowed Azerbaijan to reclaim control over broad areas of the breakaway region of Nagorno-Karabakh and surrounding lands in a conflict with Armenia.
“It must not be forgotten that Turkey stood in solidarity with the Iranian state and people, despite the risk of having to endure international pressures, at difficult times for Iran,” Mr Altun said.
Tehran and Ankara maintain mostly cordial relations, despite fighting on opposite sides of regional conflicts such as the Syrian war, and severe US trade sanctions against Iran.
Russia's Muslim Heartlands
Dominic Rubin, Oxford
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
The five pillars of Islam
In-demand jobs and monthly salaries
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The biog
Most memorable achievement: Leading my first city-wide charity campaign in Toronto holds a special place in my heart. It was for Amnesty International’s Stop Violence Against Women program and showed me the power of how communities can come together in the smallest ways to have such wide impact.
Favourite film: Childhood favourite would be Disney’s Jungle Book and classic favourite Gone With The Wind.
Favourite book: To Kill A Mockingbird for a timeless story on justice and courage and Harry Potters for my love of all things magical.
Favourite quote: “We make a living by what we get, but we make a life by what we give.” — Winston Churchill
Favourite food: Dim sum
Favourite place to travel to: Anywhere with natural beauty, wildlife and awe-inspiring sunsets.
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