The EU will seek to resolve its Brexit stand-off with Britain on Wednesday by setting out proposals for a compromise over Northern Ireland.
EU commissioner Maros Sefcovic is expected to give ground in a speech later by signalling that fewer checks will be needed on goods crossing the Irish Sea.
But his proposals may fall short of the demands set out on Tuesday by British negotiator David Frost, who wants EU judges to lose their oversight role.
Mr Frost wants the Northern Ireland Protocol replaced with an entirely new treaty, while the EU insists it will only tinker with the existing deal.
Brussels is not describing its proposals as an ultimatum but believes that negotiations could stretch into next year once they are tabled.
Under the protocol, goods are checked when they move from mainland Britain to Northern Ireland. It means they can then enter the Republic of Ireland, and therefore the EU, without further checks.
The idea is to prevent a hard border in Ireland that could stoke sectarian tensions. But Britain says the checks are excessive and imperilling the 1998 peace agreement in Northern Ireland.
Mr Sefcovic has promised to offer Northern Ireland more of a voice in how post-Brexit trade is managed, after tensions over the protocol led to the fall of the devolved government in April.
The EU commissioner is expected to propose that fewer checks will be necessary on goods entering Northern Ireland.
There are suggestions that the EU could offer reduced checks in exchange for access to UK surveillance databases that would allow monitoring of trade.
Mr Sefcovic has previously indicated that the EU is willing to change legislation to ensure no disruption of medical supplies into Northern Ireland.
But he is unlikely to budge on the issue of the European Court of Justice, which is the final arbitrator under the protocol.
Mr Frost used his speech on Tuesday to call for the ECJ to be replaced by an international arbitrator.
He repeated his threat that Britain could unilaterally suspend the protocol, under a provision known as Article 16 which covers “serious economic, societal or environmental difficulties".
Mr Sefcovic has described the threats as unhelpful and said there were no quick solutions to “an extremely complex situation”.
He has said that Northern Ireland could not remain in the EU’s single market, enabling frictionless trade with the Republic, without oversight from the ECJ.
Brexit tensions hung over a G7 summit in June at which UK Prime Minister Boris Johnson clashed with French President Emmanuel Macron over the deal.
Mr Macron expressed frustration that Britain wanted to renegotiate the protocol less than two years after Mr Johnson signed it.
But Mr Sefcovic appears to have persuaded EU colleagues to seek a compromise with what he said would be a “very far-reaching proposal”.
“I sincerely hope that this will be seen as such by our UK counterparts,” he said last week. He said he hoped for a solution by the start of next year.
Mr Frost said he was ready to discuss the proposals and would “consider them seriously, fully and positively”.
He defended the early renegotiation by telling the EU it had little to lose from changing the protocol.
“For the EU now to say that the protocol — drawn up in extreme haste in a time of great uncertainty — can never be improved upon, when it is so self-evidently causing such significant problems, would be a historic misjudgement,” he said.
“Northern Ireland is not EU territory. It is our responsibility to safeguard peace and prosperity in Northern Ireland, and that may include using Article 16 if necessary.”
UAE rugby season
FIXTURES
West Asia Premiership
Dubai Hurricanes v Dubai Knights Eagles
Dubai Tigers v Bahrain
Jebel Ali Dragons v Abu Dhabi Harlequins
UAE Division 1
Dubai Sharks v Dubai Hurricanes II
Al Ain Amblers v Dubai Knights Eagles II
Dubai Tigers II v Abu Dhabi Saracens
Jebel Ali Dragons II v Abu Dhabi Harlequins II
Sharjah Wanderers v Dubai Exiles II
LAST SEASON
West Asia Premiership
Winners – Bahrain
Runners-up – Dubai Exiles
UAE Premiership
Winners – Abu Dhabi Harlequins
Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens
Winners – Dubai Hurricanes
Runners-up – Abu Dhabi Harlequins
UAE Conference
Winners – Dubai Tigers
Runners-up – Al Ain Amblers
Who has been sanctioned?
Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
The biog
Name: Marie Byrne
Nationality: Irish
Favourite film: The Shawshank Redemption
Book: Seagull by Jonathan Livingston
Life lesson: A person is not old until regret takes the place of their dreams
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
MATCH INFO
Manchester United 2
(Martial 30', McTominay 90 6')
Manchester City 0
MATCH INFO
World Cup qualifier
Thailand 2 (Dangda 26', Panya 51')
UAE 1 (Mabkhout 45 2')
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
MATCH INFO
Serie A
Juventus v Fiorentina, Saturday, 8pm (UAE)
Match is on BeIN Sports