Pro-Palestinian activist Mahmoud Khalil. AP
Pro-Palestinian activist Mahmoud Khalil. AP
Pro-Palestinian activist Mahmoud Khalil. AP
Pro-Palestinian activist Mahmoud Khalil. AP

Mahmoud Khalil sues Trump administration for $20m after release from detention


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Mahmoud Khalil, the Columbia University graduate and activist who was detained by US immigration authorities for taking part in campus pro-Palestine protests, is suing the administration of President Donald Trump for $20 million in damages.

The filing – a precursor to a lawsuit under the Federal Tort Claims Act – names the Department of Homeland Security, US Immigration and Customs Enforcement and the State Department.

His lawyers allege Mr Khalil, a legal US resident, was falsely imprisoned, maliciously prosecuted and smeared as an anti-Semite as the government sought to deport him over his prominent role in the protests.

The activist was detained by immigration officials in early March. He said that while in a Louisiana detention centre, he was denied medication, forced to sleep under harsh, fluorescent lights and fed “nearly inedible” food, causing him to lose 7kg.

He was released from detention last month. Mr Khalil said he wanted those in the Trump administration who sought his deportation to be held responsible.

"I want to make sure that everyone who contributed to my arrest will be held accountable," he told National Public Radio. "That's something I'm also looking forward to, because now I can defend myself."

Mr Khalil was held for more than three months over his campus activism against Israel’s actions in Gaza. His deportation case is still pending resolution.

“They are abusing their power because they think they are untouchable,” he told AP. “Unless they feel there is some sort of accountability, it will continue to go unchecked.”

He added that he plans to share any settlement money with others detained in President Donald Trump’s “failed” effort to suppress pro-Palestinian speech. In lieu of a settlement, he would also accept an official apology and changes to the administration’s deportation policies.

Tricia McLaughlin, spokeswoman for the Department of Homeland Security, in a statement called Mr Khalil’s claim “absurd”, accusing him of “hateful behavior and rhetoric” that threatened Jewish students.

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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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Updated: July 10, 2025, 7:49 PM