Latest news with #KISA
Khaleej Times
22-05-2025
- Business
- Khaleej Times
First-year tax filing mistakes will draw regulatory scrutiny and penalties, says KISA's Nikos Kastellanis
With no previous tax data to reference, the Federal Tax Authority is expected to take a hard look at first-year submissions, especially in areas like expense classification, transfer pricing, and free zone claims As UAE businesses prepare their financial statements for corporate tax filings, KISA Chartered Accountants (KISA) Managing Partner warns that when the dust settles after the September 30 deadline, common errors and omissions could trigger reviews and penalties from the Federal Tax Authority. The clock is ticking for UAE businesses facing their first-ever corporate tax deadline. While many companies have registered and are working to prepare their filings, there's a dangerous misconception in the market: that submitting the return is the end of the journey. In reality, it's just the beginning. That's the message from Nikos Kastellanis, managing partner of KISA, one of the UAE's elite DFSA-Registered Auditors. KISA provides audit, tax, and advisory services to regulated and non-regulated entities across the UAE. 'Filing is not the finish line - it's the starting whistle for a new phase of regulatory scrutiny,' Kastellanis says. The real risks lie beneath the surface - inside the filings - where hidden errors and inconsistencies could expose businesses to audits, penalties, and reputational damage. Why first-year errors are especially risky The UAE is navigating uncharted waters with its new corporate tax regime. Unlike mature markets, where historical filings provide a baseline, the Federal Tax Authority (FTA) will review returns this year without any prior-year benchmarks. Every tax position is being scrutinised for the first time - and that scrutiny will be sharp. Globally, first-year tax mistakes are remarkably consistent. Businesses misclassify expenses, inflate deductions, or overlook Permanent Establishment obligations. Related-party transactions - common in multinational operations are frequently under-documented or priced in ways that don't meet the arm's length standard. Many firms overstate losses without sufficient proof. The OECD's Tax Administration 2022 report shows that in jurisdictions introducing corporate tax for the first time, audit rates spike within two years, as tax authorities establish credibility early. The FTA has published detailed guides, FAQs, and clarifications signaling a proactive stance on enforcement. Kastellanis notes, 'The Federal Tax Authority doesn't need to say much more - they've already made their expectations clear. The next step is enforcement.' With the September 30 deadline looming, the time to correct errors during financial statement preparation is closing fast. What triggers an audit? Certain mistakes are already emerging as clear audit triggers. A major pitfall is misuse of free zone tax claims. Many firms assume they automatically qualify for the 0% rate. But to benefit as a Qualifying Free Zone Person (QFZP), businesses must meet strict tests for both qualifying income and economic substance. A typical risk? A free zone company books revenue from UAE mainland clients but claims full exemption without segmenting and disclosing that income. Other red flags include failure to register or late registration. Entities missing the deadline face fines and extra scrutiny. Startups and smaller firms are particularly at risk. Another common issue is inconsistency between VAT and corporate tax positions. The FTA expects alignment across regimes. For example, a company reporting Dh20 million in VAT turnover but only Dh14 million in its tax filing will likely trigger an automated review. Transfer pricing and related-party transactions are also under the microscope. UAE law requires disclosure forms and arm's length documentation aligned with OECD standards. Failing to justify intra-group charges like excessive royalties raises compliance red flags. Beyond technicalities, the FTA relies on human intelligence. The UAE's Tax Evasion Reporting Facility allows anonymous whistleblowers to report suspected evasion, meaning disgruntled employees or competitors can also prompt investigations. 'What used to be an internal auditing decision can now be an audit trigger if not properly disclosed or documented,' Kastellanis warns. Practical steps to stay ahead What can businesses do? Kastellanis urges proactive review - even after filing. 'Companies should conduct an internal tax health check to identify weak points before the FTA does,' he advises. This includes ensuring VAT and tax filings are reconciled and consistent, especially when different teams handle each function. For Free Zone entities, robust documentation is essential. Companies must prove both economic substance and proper classification of qualifying versus non-qualifying income. Businesses with related-party transactions must prepare full transfer pricing files even for minor transactions because disclosure is mandatory from day one. Finally, Kastellanis emphasises partnering with experienced auditors who understand both compliance and risk. 'We're not just auditors, we're early warning systems. That's the value of insight-driven advice,' he says. What happens next? As the first corporate tax filings are completed, follow-up from the FTA is inevitable. Kastellanis expects soft review notices and document requests to begin in Q4 2025, focusing on free zone claims, loss-making entities, and filings that don't match VAT data. And while penalties matter, Kastellanis stresses that reputational risk is just as serious. Being flagged can affect a company's standing with banks, investors, and partners. In today's compliance environment, a tax inquiry can quickly snowball into anti-money laundering, Know Your Customer (KYC), and Know Your Business (KYB) reviews. 'Smart businesses don't wait to be audited - they act as if they already are,' Kastellanis concludes.
TECHx
08-05-2025
- Business
- TECHx
Government Highlight Cybersecurity Role at GISEC Global 2025
Home » GISEC » GISEC 2025 » Governments Highlight Cybersecurity Role at GISEC Global 2025 Governments and their role in adopting a multi-layered approach to cybersecurity took the spotlight on the second day of GISEC Global 2025. The event is the world's third-largest cybersecurity gathering and the biggest in the MENA region. After a successful opening day, Dubai World Trade Centre welcomed over 25,000 visitors from more than 160 countries. This included 450 global CISOs. The event continued under the theme 'Securing an AI-Powered Future'. The Microsoft Digital Defense Report 2024 revealed that governments are the third most-targeted sector globally by nation-state threat actors. In response, the Global Cybersecurity Congress opened with a keynote by H.E. Dr. Mohamed Al-Kuwaiti, Head of the UAE Cybersecurity Council. He said cyberattacks do not discriminate and can impact governments, businesses, and individuals alike. The cost can be high and may threaten national security. He stressed that partnership is essential to build resilience. Dr. Al-Kuwaiti also joined a panel with top officials from different sectors. The session focused on public-private cooperation, cybersecurity research, and talent development. Pei Ling Lee, Head of Cyber Strategy and Capabilities Development at Interpol, highlighted the need for better coordination. She said more meaningful dialogue is required between law enforcement and cybersecurity entities. She added: Training remains vital, but International collaboration allows sharing expertise for national-level action Afra Ibrahim Bin Fares, Senior Policy & Regulations Affairs Executive at Dubai Electronic Security Center (DESC), gave a presentation on preparing for the quantum leap. She discussed DESC's Quantum Cybersecurity Readiness Guidelines. The document provides a framework for quantum-safe measures and helps entities plan transitions for future threats. She warned that governments and tech providers must act now. Waiting could lead to serious consequences. She said quantum technology is closer than it seems and urged immediate preparation. Jin Young Oh, Vice President of the Korea Internet & Security Agency (KISA), explained South Korea's strategy. KISA is working on top cybersecurity issues such as: Generative AI Supply chain and cloud security AI cloud protection Zero-trust and quantum security KISA is also developing products and running field tests to integrate AI into national cyber defenses. GISEC Global 2025 is hosted by the UAE Cybersecurity Council, with support from DESC, the UAE Ministry of Interior, and Dubai Police. The event concludes Thursday with more panel discussions and the GISEC North Star pitch competition. Finalists will present innovations to a panel of cybersecurity experts. Leading global and regional cybersecurity firms joined the event. Participants include Huawei, AWS, Microsoft, Google Cloud Security, Cisco, Deloitte, Kaspersky, Check Point, Cloudflare, and Honeywell. Other exhibitors include Spire Solutions, CPX, CyberKnight, LinkShadow, OPSWAT, Qualys, CrowdStrike, and StrikeReady.
Korea Herald
22-04-2025
- Korea Herald
SK Telecom systems breached in cyberattack
SK Telecom, the country's largest telecommunication firm, confirmed Tuesday that its internal systems had been breached by a hacking attack, indicating a possible data leak involving USIM cards. The company said it had reported the case to the Korea Internet & Security Agency, adding that there have been no confirmed cases of the leaked information being misused. The mobile carrier detected suspicious activity around 11 p.m. on Saturday, indicating that hackers had infiltrated its internal systems and installed malware. Upon detection, the company said it immediately removed the malware, isolated affected equipment and launched a full-scale investigation across its systems. As a precautionary measure, the company is also reinforcing its defense against illegal USIM swaps and abnormal authentication attempts. The company said it will also offer a USIM protection service free of charge to customers upon request. "We will strengthen our company-wide security system to prevent recurrence and implement measures to restore customer trust," SK Telecom said in a statement. Following the incident, the Ministry of Science and ICT and KISA have launched an investigation into the scope and cause of the data breach, while also forming an emergency response team. "We have requested that SK Telecom preserve and submit relevant data related to the breach, and KISA experts have been dispatched to the site to provide technical support aimed at identifying the cause and preventing further damage," the ICT Ministry said. If the incident is deemed a violation of Article 29 of the Personal Information Protection Act, which mandates implementation of security measures, SKT could face legal sanctions. Under Article 64-2 of the Act, fines of up to 3 percent of the related revenue may be imposed. If the breach is deemed minor, authorities may opt to impose an administrative fine rather than pursue harsher penalties. Under the Enforcement Decree of the Personal Information Protection Act, leaks involving over 1,000 records can result in fines of up to 50 million won ($35,200), with the amount adjusted based on the nature and severity of the violation.
Miami Herald
18-03-2025
- Business
- Miami Herald
AAA Distributor Shares Sales and Design Trend Insights from Top U.S. Kitchen and Bath Trade Show
President Michael Neal forecasts surge in demand as homeowners track interest rates and plan upgrades, with an old style that's making a comeback in design circles. PHILADELPHIA, PENNSYLVANIA / ACCESS Newswire / March 18, 2025 / Executives from AAA Distributor and Surplus Building Materials attended the annual Kitchen & Bath Industry Show (KBIS) in Las Vegas, North America's premier home improvement trade show, and offer insight on economic and design trends from meetings with leading vendors and designers in the industry. AAA Distributor is one of the nation's largest distributors, wholesalers and retailers of home improvement products. With its headquarters in Philadelphia, a warehouse in Spokane, and the Surplus Building Materials branch in Dallas, AAA Distributors maintains one of the industry's most extensive inventories of flooring, kitchen, and bath remodeling products. The KBIS event, held in conjunction with the National Kitchen & Bath Association, drew 40,000 attendees and featured more than 250 exhibitors of innovative products, breakthrough designs, and the latest trends in kitchen and bath remodeling. Michael Neal, president of AAA Distributor, and managers Jenya Teplitskaya and Ulyana Shnauderman met with vendors and researched emerging trends in home improvement. "The outlook is that the pent-up demand that has not been taken care of pre-election continues to be there," Neal said. "There are a lot of people out there right now who need to remodel their homes." Homeowners fall into two groups, both with incentives to upgrade, Neal said: "We have a large generation that wants to upgrade and sell their homes, and we have another group that wants to upgrade because they have 2.5 to 3 percent interest rates and don't want to move because they're not going sell their $400,000 home that's now worth $600,000." Neal said the industry is also continuing to see demand from homeowners who are still repairing their homes after 2024's tragic series of natural disasters - in particular, hurricanes in Florida, flooding in North Carolina, and wildfires in California. The AAA Distributor team has identified six key design trends for 2025 as homeowners plan and execute their remodeling and improvement projects: Mid-century modern style, featuring warm natural wood tones for kitchen cabinets and bathroom cabinetry, are making a big tiles for kitchen floors and walls, which make the room appear larger, are a hot "concealed kitchen" design is a popular choice for are adopting artistic, creative bathroom tile wood cabinetry in functional bathroom features like built-in linen hampers and laundry chutes is a new finishes on faucets, mirrors and hardware, and arched, oval and curved, are timeless and remain popular in 2025. The AAA Distributor team was pleased to attend KISA and build bonds with current and new vendors, while gaining insight into industry news and trends. As a leading provider of kitchen and bath products for both professionals and do-it-yourselfers, AAA Distributor continually monitors industry developments to better serve customers. For more information, visit and About AAA Distributor AAA Distributor is a distributor, wholesaler, and retailer of kitchen, bathroom and flooring home improvement and remodeling products. Headquartered in Philadelphia, its large showroom (120,000 square feet) in Philadelphia offers samples, displays, and free 3D design services with the assistance of 12 full-time interior designers. AAA designs and imports its own proprietary product line, LessCare, which includes cabinetry, vanities, bath furnishings, plumbing supplies, flooring and fixtures. In addition to warehouse locations in Philadelphia, Surplus Building Materials in Dallas and The Ugly Duck Warehouse in Spokane, AAA Distributor has showrooms in the southeast and northeast U.S. Contact Information Buse Kayar busek@
Associated Press
18-03-2025
- Business
- Associated Press
AAA Distributor Shares Sales and Design Trend Insights from Top U.S. Kitchen and Bath Trade Show
President Michael Neal forecasts surge in demand as homeowners track interest rates and plan upgrades, with an old style that's making a comeback in design circles. PHILADELPHIA, PENNSYLVANIA / ACCESS Newswire / March 18, 2025 / Executives from AAA Distributor and Surplus Building Materials attended the annual Kitchen & Bath Industry Show (KBIS) in Las Vegas, North America's premier home improvement trade show, and offer insight on economic and design trends from meetings with leading vendors and designers in the Distributor Team at KBIS 2025 AAA Distributor is one of the nation's largest distributors, wholesalers and retailers of home improvement products. With its headquarters in Philadelphia, a warehouse in Spokane, and the Surplus Building Materials branch in Dallas, AAA Distributors maintains one of the industry's most extensive inventories of flooring, kitchen, and bath remodeling products. The KBIS event, held in conjunction with the National Kitchen & Bath Association, drew 40,000 attendees and featured more than 250 exhibitors of innovative products, breakthrough designs, and the latest trends in kitchen and bath remodeling. Michael Neal, president of AAA Distributor, and managers Jenya Teplitskaya and Ulyana Shnauderman met with vendors and researched emerging trends in home improvement. 'The outlook is that the pent-up demand that has not been taken care of pre-election continues to be there,' Neal said. 'There are a lot of people out there right now who need to remodel their homes.' Homeowners fall into two groups, both with incentives to upgrade, Neal said: 'We have a large generation that wants to upgrade and sell their homes, and we have another group that wants to upgrade because they have 2.5 to 3 percent interest rates and don't want to move because they're not going sell their $400,000 home that's now worth $600,000.' Neal said the industry is also continuing to see demand from homeowners who are still repairing their homes after 2024's tragic series of natural disasters - in particular, hurricanes in Florida, flooding in North Carolina, and wildfires in California. The AAA Distributor team has identified six key design trends for 2025 as homeowners plan and execute their remodeling and improvement projects: Mid-century modern style, featuring warm natural wood tones for kitchen cabinets and bathroom cabinetry, are making a big comeback. Large-format tiles for kitchen floors and walls, which make the room appear larger, are a hot trend. The 'concealed kitchen' design is a popular choice for 2025. Designers are adopting artistic, creative bathroom tile applications. Natural wood cabinetry in functional bathroom features like built-in linen hampers and laundry chutes is a new development. Luxurious finishes on faucets, mirrors and hardware, and arched, oval and curved, are timeless and remain popular in 2025. The AAA Distributor team was pleased to attend KISA and build bonds with current and new vendors, while gaining insight into industry news and trends. As a leading provider of kitchen and bath products for both professionals and do-it-yourselfers, AAA Distributor continually monitors industry developments to better serve customers. For more information, visit and About AAA Distributor AAA Distributor is a distributor, wholesaler, and retailer of kitchen, bathroom and flooring home improvement and remodeling products. Headquartered in Philadelphia, its large showroom (120,000 square feet) in Philadelphia offers samples, displays, and free 3D design services with the assistance of 12 full-time interior designers. AAA designs and imports its own proprietary product line, LessCare, which includes cabinetry, vanities, bath furnishings, plumbing supplies, flooring and fixtures. In addition to warehouse locations in Philadelphia, Surplus Building Materials in Dallas and The Ugly Duck Warehouse in Spokane, AAA Distributor has showrooms in the southeast and northeast U.S.
