People gather in Times Square as they await election results on November 3, 2020 in New York City. Getty
People gather in Times Square as they await election results on November 3, 2020 in New York City. Getty
People gather in Times Square as they await election results on November 3, 2020 in New York City. Getty
People gather in Times Square as they await election results on November 3, 2020 in New York City. Getty

Does the US need a new voting process?


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Three days after polls closed, Americans continue to hear confusing narratives about the results of their presidential election. Well before many states had finished counting, Joe Biden, the Democratic challenger, assured his supporters that victory was certain. The incumbent, President Donald Trump, has claimed victory, too. He did so even as the electoral maths yesterday swung in his opponent’s favour.

Mr Trump had demanded that officials stop counting votes at the end of election night, while Mr Biden insisted on taking millions of remaining postal ballots into consideration. Mr Trump’s campaign team has already filed lawsuits in Pennsylvania, Michigan and Georgia, to contest the outcome of the elections in states, promising weeks if not months of bitter, partisan accusations.

When American electoral races are as close as this one, various imperfections in the country’s voting system come to light. Covid-19 played its own part in bringing those flaws to light, as an unprecedented number of Americans voted by post in states with completely different legal requirements for when and how those votes are counted. The end result is more delay, more room for uncertainty and a more mystifying experience for American voters struggling to understand how their own leader is chosen.

America’s unique voting system, in which states hold their own elections using their own rules, is a manifestation of deeply entrenched constitutional values. But there is considerable scope for reform, even in ways that do not undermine the spirit of state sovereignty that characterises the election. A more standardised voting process across states, and the empowerment of existing federal election bodies would be a start.

For example, as things stand, in 21 states, voters can register to vote on the same day as the election. This is not the case in the remaining 29 states. Similarly, a majority of states allow voters to cast their ballots in advance, but in some others this is not an option. The voter registration process can also be lengthy and complicated. Some states also require that people come in person to register, a deterrent for those who are vulnerable to Covid-19 and limiting their physical interactions. There is no modern-day need for this process to be so complicated. In a number of democracies, including France, registration is automatic.

The eclecticism of the rules can be discouraging for prospective voters and confusing for voters and observers. Other democracies, some with populations comparable to or greater than the US, have managed to avoid these issues by empowering an independent federal body to oversee elections and to ensure that they are free and fair. For instance, the Election Commission of India has constitutional authority to administer all aspects of the election process in the world’s largest democracy. Last year, this system allowed for more than 600 million people to vote in a marathon six weeks.

The 2020 presidential elections have underscored the importance of balancing state freedoms with national interests

Roughly 160 million Americans voted in this year’s elections. The US has federal agencies that either oversee elections or enforce campaign finance laws, but these bodies are largely bureaucratic, and bogged down by partisan disagreements. The 2020 presidential elections have underscored the importance of balancing state freedoms with national interests. After each election, voices are raised on the need to reform the voting system and electoral college. Some say the US needs a standardised process for voting and counting ballots, others suggest using the popular vote to determine the presidential pick. The events of this week bring this issue into greater focus and should continue to garner attention after the next president is chosen. How the current presidential contest is resolved will test the laws and institutions of the US, but can also pave the path for long-term reform.

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

Essentials

The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours 
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.