• Bernardo Silva, third right, celebrates with his teammates after scoring Manchester City's opening goal in the Champions League quarter-final first leg against Real Madrid at the Santiago Bernabeu stadium in Madrid, Spain, on Tuesday, April 9, 2024. AP
    Bernardo Silva, third right, celebrates with his teammates after scoring Manchester City's opening goal in the Champions League quarter-final first leg against Real Madrid at the Santiago Bernabeu stadium in Madrid, Spain, on Tuesday, April 9, 2024. AP
  • Real Madrid goalkeeper Andriy Lunin fails to keep out Bernardo Silva's free-kick for Man City's opening goal. Reuters
    Real Madrid goalkeeper Andriy Lunin fails to keep out Bernardo Silva's free-kick for Man City's opening goal. Reuters
  • Real Madrid midfielder Jude Bellingham and Manchester City defender Ruben Dias compete for the ball. AP
    Real Madrid midfielder Jude Bellingham and Manchester City defender Ruben Dias compete for the ball. AP
  • Rodrygo celebrates scoring Real Madrid's second goal with teammate Vinicius Junior. Getty Images
    Rodrygo celebrates scoring Real Madrid's second goal with teammate Vinicius Junior. Getty Images
  • Rodrygo celebrates after giving Real Madrid a 2-1 lead against Manchester City. EPA
    Rodrygo celebrates after giving Real Madrid a 2-1 lead against Manchester City. EPA
  • Phil Foden shoots to score Manchester City's equaliser against Real Madrid. AFP
    Phil Foden shoots to score Manchester City's equaliser against Real Madrid. AFP
  • Phil Foden celebrates with teammates after scoring an equaliser to make it 2-2. EPA
    Phil Foden celebrates with teammates after scoring an equaliser to make it 2-2. EPA
  • Phil Foden celebrates scoring Manchester City's second goal with manager Pep Guardiola and Ruben Dias. Reuters
    Phil Foden celebrates scoring Manchester City's second goal with manager Pep Guardiola and Ruben Dias. Reuters
  • Phil Foden walks off injured but Pep Guardiola insisted the midfielder only suffered a knock. PA
    Phil Foden walks off injured but Pep Guardiola insisted the midfielder only suffered a knock. PA
  • Josko Gvardiol celebrates scoring Manchester City's third goal against Real Madrid. Getty Images
    Josko Gvardiol celebrates scoring Manchester City's third goal against Real Madrid. Getty Images
  • Josko Gvardiol's shot flies past Real Madrid goalkeeper Andriy Lunin for Manchester City's third goal. Reuters
    Josko Gvardiol's shot flies past Real Madrid goalkeeper Andriy Lunin for Manchester City's third goal. Reuters
  • Federico Valverde celebrates scoring Real Madrid's third goal against Manchester City. AP
    Federico Valverde celebrates scoring Real Madrid's third goal against Manchester City. AP
  • Manchester City goalkeeper Stefan Ortega watches the ball in the net after Federico Valverde scores Real Madrid's third goal. AP
    Manchester City goalkeeper Stefan Ortega watches the ball in the net after Federico Valverde scores Real Madrid's third goal. AP
  • Jude Bellingham and John Stones battle for the ball. Getty Images
    Jude Bellingham and John Stones battle for the ball. Getty Images
  • Manchester City striker Erling Haaland applauds the crowd at the end of the match. AFP
    Manchester City striker Erling Haaland applauds the crowd at the end of the match. AFP

Guardiola praises Manchester City's emotional stability in pulsating draw at Real Madrid


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Manchester City manager Pep Guardiola praised his team for their emotional stability after claiming a 3-3 draw away to Real Madrid in the Champions League quarter-finals first leg on Tuesday night.

In a pulsating match at the Santiago Bernabeu, Bernardo Silva put holders City ahead with a low free-kick but Ruben Dias' own goal and Rodrygo helped Madrid dramatically and swiftly fight back to lead.

City's own quick-fire double in the second half through Phil Foden and Josko Gvardiol stunned the record 14-time winners, but the hosts snatched a draw through Fede Valverde's scorching volley.

The thrilling match was played in the shadow of a threat by the Islamic State group to target every quarter-final first leg, with a heavy security presence around the Santiago Bernabeu.

Spanish officials said 2,000 police were to be deployed, but the match was played without incident off the field. On it, there was plenty under the closed stadium roof, which produced a thunderous atmosphere.

“I had the feeling it is a process. This result in the first seasons together we would lose 4-1, 5-1,” Guardiola said. “We were not stable emotionally. And being stable emotionally is so important.

“We have an idea and we believe now in what we want to do but it is impossible to control all the time against Real Madrid. You have to stick it. In the first seasons, we would not. Now we are more stable and hopefully in the future we can do better and better.”

Guardiola omitted influential playmaker Kevin De Bruyne after the Belgian said he was unwell shortly before the game. The former Barcelona coach also chose Stefan Ortega in goal over the experienced Ederson, only just back from a thigh injury, while Gvardiol overcame a fitness doubt to start.

Ancelotti opted for defensive midfielder Aurelien Tchouameni at centre-back over Nacho Fernandez and an early rash challenge from the Frenchman paved the way for City's opener.

Tchouameni clumsily hacked down Jack Grealish after 33 seconds and was booked, meaning he will miss the second leg.

From the free-kick Silva punished Madrid further, catching goalkeeper Andriy Lunin out at his near post with a low effort which skidded home. Lunin was sluggish to react and although he got a hand to the ball he could not keep it out.

Ancelotti, coaching a record 200th Champions League match, claimed his team lacked courage and personality when they were crushed by City in last season's semis, but they showed mental strength to quickly turn the game on its head.

This kind of feat is Madrid's wont in the Champions League, and they produced two goals in two minutes, reminiscent of their stunning 2022 semi-final comeback against City thanks to Rodrygo's brace.

Dias deflected the first into his own net as he tried to block Camavinga's long-range piledriver, and Rodrygo slipped home the second after Vinicius Junior played him in, aided by another deflection, off Manuel Akanji.

Foden pulled his team level with a superb strike, arched into the top corner from the edge of the box. The England international is enjoying his finest goalscoring campaign with this perfectly placed effort his 22nd across all competitions.

Foden was taken off hurt late on but Guardiola said the injury was just "a knock".

With Antonio Rudiger shackling Erling Haaland, City got a goal from an unlikely source to lead five minutes later. Gvardiol's ferocious bending effort from distance left Lunin no chance and silenced the Bernabeu -- but not for long.

Valverde's brilliant volley from Vinicius' cross zipped past Ortega to level the score and leave the game deliciously poised for the second leg on April 17.

“It was a really good, entertaining game,” Guardiola said. “Two teams that want to attack - in different ways but they want to attack. “Fantastic goals - all three [of ours] and Valverde’s as well.

“What I love is the way we played the second half when we were 2-1 down. We controlled the game really well.

“It’s Madrid. You can be 3-2 and the game is over - here it is never over. One week until our next game in Manchester - it will be sold out and they will help us score one goal. We will do the rest. And the team who is best will reach the semi-finals.”

Ancelotti said he had no complaints about the result and backed his team to repeat their performance in the second leg at the Etihad next Wednesday in a bid to reach the semi-finals.

“We put in a great performance, it was a hard-fought game. We started really poorly, conceding the early goal. After that, the team executed the press really well, we won a lot of balls and attacked well on the transitions," he said.

"We could have won it, we had chances to make it 3-1. They scored two amazing goals but we showed the desire and commitment to get back into the game and level. Now we have the disadvantage of playing away from home but we can put in a repeat performance of what we saw here today.”

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

Updated: April 10, 2024, 4:33 AM