A Dubai DJ who won a private island off the coast of Canada has revealed he relinquished the land just before coronavirus struck.
Brendan Lopez, 27, took the decision to abandon ownership of the Nova Scotia site in late January and instead opted for Dh200,000 in cash.
Speaking to The National, he described his choice as the "right move" given his videography business had since been affected by the global health pandemic.
But he said the decision to give up the floating estate had been a tough one, with some of his friends insisting he should hang on to the unique prize.
“From the start I was given the option to keep the island or take the cash," he said. “I held off for months on making a decision because the idea of owning something like that was really cool.
It will be a cool story to tell the grandchildren that I used to own an island, even if I didn't get the chance to actually visit it
“Then in January, when I started hearing news from China about the coronavirus, I just thought the logical move would be to take the money instead.
“It will be a cool story to tell the grandchildren that I used to own an island, even if I didn’t get the chance to actually visit it."
Located on the far east of Canada's coastline, Hollpoint Island – also known as Hurricane Island – is the size of five football pitches.
The 2.42-hectare strip of land is a short boat ride from the mainland, but takes about 20 hours of flying time to reach from Dubai.
Mr Lopez, who was born and brought up in the UAE, won the island in October last year through a competition launched by Liv, an online bank run by Emirates NBD. As part of the win at the time, he was also given Dh100,000.
“As a freelancer I have felt the impact of Covid-19, so I count myself lucky that I had the chance to do some financial damage control before things worsened globally,” Mr Lopez said.
“I had a lot of jobs postponed or cancelled but things are slowly going back to normal now.”
When Mr Lopez first won the prize, he joked that only people like Richard Branson owned islands.
And although he is no longer the lord of his own floating paradise, he said it was fun while it lasted.
“It was such a cool prize to be on the receiving end of,” he said.
“If circumstances were different, maybe I would have kept it, but some real world issues crept in and I had to make a snap decision.
“There's no doubt I would have loved it, but in reality I would have had no idea what to do with the place.”
In an earlier interview with CBC, a Canadian news site, a spokesman for Liv bank said it bought the island through a Germany-based private island real estate company for about Dh135,000.
According to the real estate site viewpoint.ca, the 2019 tax assessment said owners would be taxed at an annual rate of Dh350.
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
