If elected, former MasterCard chief executive Ajay Banga would be the first Indian-born president of the World Bank. Reuters
If elected, former MasterCard chief executive Ajay Banga would be the first Indian-born president of the World Bank. Reuters
If elected, former MasterCard chief executive Ajay Banga would be the first Indian-born president of the World Bank. Reuters
If elected, former MasterCard chief executive Ajay Banga would be the first Indian-born president of the World Bank. Reuters

Business

US nominates Ajay Banga to lead World Bank

Selection of Indian-American executive comes a week after David Malpass announced plans to end his term early

Kyle Fitzgerald
Kyle Fitzgerald
Washington

February 23, 2023

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The US on Thursday nominated Indian-American executive Ajay Banga to lead the World Bank.

In announcing Mr Banga's nomination, US President Joe Biden pointed to the banking executive's experience in tackling climate change and financial inclusion, among other global challenges.

“Ajay is uniquely equipped to lead the World Bank at this critical moment in history,” Mr Biden said.

The nomination of the former MasterCard chief executive comes a week after current World Bank President David Malpass announced plans to step down from the position before the end of his term, which was to expire in 2024.

Mr Malpass, who was nominated under former president Donald Trump, faced criticism last year for raising doubts that the burning of fossil fuels exacerbates climate change. He later said that he had misspoken.

Mr Biden said Mr Banga “has critical experience mobilising public-private resources to tackle the most urgent challenges of our time, including climate change”.

Mr Banga is the first Indian-born nominee to the World Bank presidency, and Mr Biden said his upbringing in India would give the institution a unique perspective on the challenges faced by developing countries.

He currently serves as vice chairman of the equity firm General Atlantic.

Treasury Secretary Janet Yellen said Mr Banga's 30-year banking experience would help the World Bank to make inroads on eliminating extreme poverty and other challenges. She also said his record of creating relationships in the private and public sectors as well as with non-profits would help him “press for the reforms need to meet our shared ambitions”.

“He has the right leadership and management skills, experience living and working in emerging markets, and financial expertise to lead the World Bank at a critical moment in its history, deliver on its core development goals and evolve the bank to meet global challenges like climate change,” Ms Yellen said.

The US is the largest shareholder in the World Bank, with 16.57 per cent of its capital shares.

The World Bank said it would accept applications through March 29. Every World Bank president since its 1944 inception has been a US citizen.

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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

 

 

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  1. Join parent networks
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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

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Updated: February 23, 2023, 4:38 PM
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