King Charles, speaking to then Chancellor of the Exchequer Rishi Sunak and his wife Akshata Murty, at a reception of the British Asian Trust at the British Museum, in London, on February 2.
King Charles, speaking to then Chancellor of the Exchequer Rishi Sunak and his wife Akshata Murty, at a reception of the British Asian Trust at the British Museum, in London, on February 2.
King Charles, speaking to then Chancellor of the Exchequer Rishi Sunak and his wife Akshata Murty, at a reception of the British Asian Trust at the British Museum, in London, on February 2.
King Charles, speaking to then Chancellor of the Exchequer Rishi Sunak and his wife Akshata Murty, at a reception of the British Asian Trust at the British Museum, in London, on February 2.


Sunak's appointment doesn't cancel bigotry in the UK


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November 01, 2022

There is something special about the fact that Rishi Sunak is the UK’s first Asian, as well as first Hindu, prime minister. It says something about the UK. But there is plenty it does not say, and a lot of wishful thinking seems to abound over his appointment. We have to be careful about reading too much into it, both positively and negatively.

Firstly, the UK is not the first western European country to have a prime minister with Indian heritage. The UK’s western neighbour, Ireland, had one from 2017 to 2020 in Leo Varadkar, and who will be PM in a few weeks in the planned power sharing rotation. When that happened in Ireland, however, it was not lauded particularly as a massive milestone. Irish society might have had their first mixed race prime minister, but it seemed to be an ordinary event. Race didn’t come up particularly, and to this day, even while Mr Varadkar has his critics in Irish politics, race does not seem to have ever come up.

Indeed, when Mr Varadkar pushed an actively anti-racist platform on several issues, such as removing statues of slave owners, or expressing support for the Black Lives Movement in the US, it didn’t really turn heads in Irish society.

Labour leader Sir Keir Starmer (R) meets Tanaiste Leo Varadkar in London, on October 19. PA Wire
Labour leader Sir Keir Starmer (R) meets Tanaiste Leo Varadkar in London, on October 19. PA Wire

There are those that want to imagine that the UK has got to this point – that Mr Sunak’s race and minority religious status as a practicing Hindu, is simply irrelevant for the British public. Hence his being elected as the new leader of the Conservative Party, and thus prime minister, was extraordinary in its ordinariness.

There are others who go in the other direction, which we saw on the Daily Show, a popular American comedy-news show, where it was claimed there was a massive "backlash" against Mr Sunak’s becoming Britain’s prime minister, due to his Indian origins. The host, Trevor Noah, defended his comments, insisting that he wasn’t making a generalised characterisation of British society writ large, but was talking about only "some" people.

Noah was wrong – but also right. He was very wrong in saying there was a backlash against Mr Sunak due to his Indian origins – his belonging to the UK seemed barely to come up as an issue, even at the height of campaigning. The closest one could say it came up as a point of contention was related to taxation issues, as Akshata Murty, Mr Sunak’s wife, claimed to be "non-domiciled" in the UK for tax purposes.

And even then, his own Indian origins were not seen as controversial. Quite rightly so – and quite unlike when former US president, Barack Obama, was elected in 2008. Then, his mixed race and Black heritage served as a lightning rod for right-wing and far-right wing opponents to question his fitness for the presidency. No doubt, there is a temptation to see Mr Sunak as somehow a British version of Mr Obama – but Mr Sunak likely did not have to overcome huge anti-Indian racism in the UK to gain his position, in remotely the same way that Mr Obama had to overcome anti-Black racism in the US.

But that does not mean the UK actually does not have a problem with racism, or indeed with minority religious groupings. Mr Sunak has Indian origins, true – but Mr Sunak is also incredibly wealthy, and in the context of the UK, class often overcomes and displaces race.

Moreover, historically, the biggest target of racism and bigotry in the Indian British community is aimed at a different demographic – the Muslim community, and especially those who are visibly and publicly Muslim. This is why the former chairperson of the Conservative Party, Sayeeda Warsi, has been raising the alarm around anti-Muslim bigotry in the UK in general, and inside the Conservative Party in particular, for many years now.

Far beyond the party, there have been numerous critiques of how the Conservative Party simply does not take anti-Muslim bigotry seriously enough, which has meant reports of rampant Islamophobia within the party.

Despite three years of promises, the current government failed to even define Islamophobia, an essential task if the government were to recognise the importance of tackling anti-Muslim bigotry and hate crimes against Muslims.

In May of next year, the coronation of the UK's new monarch, King Charles III, is expected to take place. It will be a striking affair – the coronation of the head of the Christian Anglican Communion, against the backdrop of a Hindu Prime Minister, in a city with a (Labour) Muslim Mayor. The coronation will have multi-faith representation, as is befitting of this king in particular, who has expressed a great deal of respect for the multitude of Britain’s faiths. The UK has much to be grateful for in terms of how far it has come in this regard, but we also should not fool ourselves into thinking we’ve come further than we have.

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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World Cut Steakhouse, Habtoor Palace Hotel, Dubai. On Thursday evening, head chef Diego Solis will be serving a high-end sounding four-course meal that features chestnut veloute with smoked duck breast, turkey roulade accompanied by winter vegetables and foie gras and pecan pie, cranberry compote and popcorn ice cream.

Jones the Grocer, various locations across the UAE. Jones’s take-home holiday menu delivers on the favourites: whole roast turkeys, an array of accompaniments (duck fat roast potatoes, sausages wrapped in beef bacon, honey-glazed parsnips and carrots) and more, as  well as festive food platters, canapes and both apple and pumpkin pies.

Ruth’s Chris Steakhouse, The Address Hotel, Dubai. This New Orleans-style restaurant is keen to take the stress out of entertaining, so until December 25 you can order a full seasonal meal from its Takeaway Turkey Feast menu, which features turkey, homemade gravy and a selection of sides – think green beans with almond flakes, roasted Brussels sprouts, sweet potato casserole and bread stuffing – to pick up and eat at home.

The Mattar Farm Kitchen, Dubai. From now until Christmas, Hattem Mattar and his team will be producing game- changing smoked turkeys that you can enjoy at home over the festive period.

Nolu’s, The Galleria Mall, Maryah Island Abu Dhabi. With much of the menu focused on a California inspired “farm to table” approach (with Afghani influence), it only seems right that Nolu’s will be serving their take on the Thanksgiving spread, with a brunch at the Downtown location from 12pm to 4pm on Friday.

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Updated: November 01, 2022, 4:32 AM