Britain's Prime Minister Boris Johnson is facing mounting criticism over his new bill which will attempt to override the Brexit withdrawal agreement. AFP
Britain's Prime Minister Boris Johnson is facing mounting criticism over his new bill which will attempt to override the Brexit withdrawal agreement. AFP
Britain's Prime Minister Boris Johnson is facing mounting criticism over his new bill which will attempt to override the Brexit withdrawal agreement. AFP
Britain's Prime Minister Boris Johnson is facing mounting criticism over his new bill which will attempt to override the Brexit withdrawal agreement. AFP

British government wins vote on controversial Brexit bill


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The British government has won the vote on the controversial bill that gives it power to override parts of the Brexit withdrawal agreement and possibly break international law.

The Internal Market Bill has been met with strong opposition from some British MPs and the EU, which has threatened legal action if it is implemented.

The legislation threatens to undermine the already-floundering Brexit negotiations between the two parties.

It allows goods and services to flow freely across the UK when it leaves the EU's single market and Customs union on January 1.

It also gives the government power to change parts of the legally binding withdrawal agreement.

Supporters say it contains crucial protection for Northern Ireland and the rest of the UK if future talks fall apart.

But critics, including many in the ruling Conservative party, say it will damage the UK's reputation by breaching international law.

The bill was passed by a government majority of 77 on Monday evening, with 340 MPs for to 263 against.

It will now go to a debate and vote in the House of Lords before it is enshrined into law.

Prime Minister Boris Johnson earlier told MPs in the House of Commons that he had “absolutely no desire to use these measures", which were "an insurance policy".

Rebellions will probably follow in the next few weeks as the legislation receives more scrutiny.

The government was expected to pass the bill but Mr Johnson earlier faced increasing opposition with the resignation of one of his special envoys.

Rehman Chishti announced his departure from his role as the UK's special envoy on freedom of religion or belief in a letter to Mr Johnson on Monday.

"I’ve written to the PM resigning as the PM’s special envoy," Mr Chishti wrote on Twitter.

"I can’t support the Internal Market Bill in its current form, which unilaterally breaks the UK’s legal commitments.

“As an MP for 10 years and former barrister, values of respecting rule of law and honouring one’s word are dear to me."

Mr Chishti is the first MP from Mr Johnson’s party to resign over the move.

"Having read your letter to colleagues, as well as wider statements on the matter, I will not be able to support this bill on a matter of principle,” his resignation letter said.

"I have real concerns with the UK unilaterally breaking its legal commitments under the withdrawal agreement.

"I feel strongly about keeping the commitments we make; if we give our word, then we must honour it."

Earlier on Monday, former prime minister David Cameron also spoke against the bill, saying he had "misgivings" about it and breaking an international treaty should be the "final resort".

On Sunday, Geoffrey Cox QC, the former attorney general, described the plans as "unconscionable".

Mr Chishti had taken up the special envoy position a year ago and had been overseeing a report by the Bishop of Truro into how the British government could better respond to the plight of persecuted Christians around the world.

The hard-hitting report, which had been commissioned by the former foreign secretary Jeremy Hunt, made 22 ambitious recommendations.

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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Which honey takes your fancy?

Al Ghaf Honey

The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year

Sidr Honey

The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest

Samar Honey

The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.