Plenty of City minds are in overdrive at present. They like to stay on top of things, preferably ahead, it’s how they make their money.
They’re trying to make sense of the current crisis. Rather, to phrase that another way, they’re trying to figure if it’s as bad as is being claimed or if it's a blip that will shortly correct itself.
The usual indicators are difficult to read. The Prime Minister has chosen this moment to go on holiday, to allegedly paint like Winston Churchill while catching the end of the summer sun in Marbella. Yes, but that’s the way Boris Johnson is.
The image management subtext is clear. Even if his house were burning down, he would still be sitting finishing the end of a classical text or, as is his wont, putting the final touches to one of those cardboard model buses he likes to make.
But the government, seemingly, is content to allow them to suffer and is not prepared to come up with a meaningful rescue plan.
Business counting long-term cost of Covid
Yes, but that’s because, having spent a colossal amount on keeping the wheels spinning during Covid, there is no public money available, not on the scale that would be required here.
Who knows how long the cost increases will last – this may not be a short-term phenomenon but one that will last a while, pushing the level of bailout required even higher.
This, too, is without labour shortages causing problems, the lack of delivery drivers and other workers, and the difficulties of trading with the EU caused by the Brexit bureaucracy.
And did someone mention the pandemic? Is it going away for good, or are we in a holding pattern until a vaccine-defying variant emerges?
A dearth of delivery drivers led to UK petrol stations running dry. PA
Meanwhile there is the apparent emergence of a white knight. The Indian-born tycoon Sanjeev Gupta, who recently held a spectacular 50th birthday celebration on Mykonos, has pumped £50 million ($68.1m) into firing up his Liberty Steel factories in Rotherham and Stocksbridge in South Yorkshire.
Talk about contrarian. It’s difficult to assess who is more doom-defying: Johnson or Gupta.
The City likes those who go against the flow. After all, they are the ones who frequently appear on the other side, having made a substantial bet and won.
Liberty is the UK’s third-biggest steelmaker, employing 3,000 people in precisely the sort of areas that Johnson’s Conservatives are keen to woo
This, however, is something else. There’s Gupta partying like there’s no tomorrow on a Greek island, the metals tycoon’s helicopter (call sign M-INES) ferrying guests back and forth.
At the same time: his main source of finance, Greensill Capital, has collapsed; Gupta’s GFG Alliance conglomerate owes more than $5bn, much of it to Greensill; creditors are circling and legal battles are under way; he’s split with Jay Hambro, his long-time right hand; US private equity firm American Industrial Partners, which is holding debt secured on GFG plants in France and Belgium is declaring it has seized control of a Gupta jewel, GFG’s French aluminium smelter.
Liberty is the UK’s third-biggest steelmaker, employing 3,000 people in precisely the sort of areas that Johnson’s Conservatives are keen to woo. Gupta has put in £50m, thanks to the refinancing of his Australian business.
Liberty Steel furnaces are firing up again – but for how long? Reuters
Gupta’s people are maintaining the Mykonos extravaganza was paid for by his wealthy industrialist father. OK. Second, he remains committed to the future of steel and to the UK, despite the Serious Fraud Office move which he intends to fight.
The two Liberty Steel plants can begin producing again. Their employees have been on furlough for months. But what if it goes wrong, if £50m is not enough, what then? Here they are, about to recommence working exactly as production may be curtailed due to spiralling energy prices.
It was only six months ago that GFG’s request for a £170m emergency loan from the government was rejected. GFG wanted the money to replace cash lent by Greensill.
The reasons given for the refusal were that ministers were concerned about the complex structure of GFG; that they were fearful the UK taxpayer could end up funding another, overseas part of Gupta’s empire; and the £42m cost of a house bought by Gupta and his wife in August 2020 would absorb a chunk of the £170m.
Then, the government let it be known there was a package in place should Liberty Steel pack up completely.
Businesses face up to survival of the fittest
That was back in March. An awful lot has happened since. The government is today facing storms on several fronts and as last week’s Tory party conference highlighted, against that backdrop favours a script that says businesses must sink or swim. This is an administration that is setting its face against involvement anywhere.
We’ve got used to previous leaders jumping in at the first sign of trouble. But as Johnson has made clear that is not going to happen – the business community must sort out its own problems.
It’s not only about a lack of Exchequer cash. Partly, it’s ideology.
This is a regime led by a libertarian, instinctively hands-off premier.
It’s a government, too, that is heavily influenced by focus groups. If the private polling they conduct says the public believes business should stand on its own feet, that its bosses pay themselves fortunes so they can sort out their own problems, so be it.
Where does that leave a contingency for the demise of Liberty Steel? It’s not clear. What is known is that Johnson is on a sun-lounger, while Gupta has just returned from the beach. All must be well with them both, except it isn’t.
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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
Cry Macho
Director: Clint Eastwood
Stars: Clint Eastwood, Dwight Yoakam
Rating:**
THE DETAILS
Kaala
Dir: Pa. Ranjith
Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar
Uefa Champions League semi-final, first leg
Tuesday, April 24 (10.45pm)
Liverpool v Roma
Wednesday, April 25
Bayern Munich v Real Madrid (10.45pm)
Europa League semi-final, first leg
Thursday, April 26
Arsenal v Atletico Madrid (11.05pm)
Marseille v Salzburg (11.05pm)
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
THE BIO
Favourite holiday destination: Whenever I have any free time I always go back to see my family in Caltra, Galway, it’s the only place I can properly relax.
Favourite film: The Way, starring Martin Sheen. It’s about the Camino de Santiago walk from France to Spain.
Personal motto: If something’s meant for you it won’t pass you by.
How to increase your savings
Have a plan for your savings.
Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
Decide on a financial goal that is important to you and put your savings to work for you.
It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
