Tens of thousands of families had their holiday plans ruined in July because of gridlocked traffic around Dover, Kent. PA
Tens of thousands of families had their holiday plans ruined in July because of gridlocked traffic around Dover, Kent. PA
Tens of thousands of families had their holiday plans ruined in July because of gridlocked traffic around Dover, Kent. PA
Tens of thousands of families had their holiday plans ruined in July because of gridlocked traffic around Dover, Kent. PA

EU border security trial raises prospect of major delays for UK holidaymakers


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Trials of technology for a new border control system that many fear will cause major delays for holidaymakers will take place this month.

Doug Bannister, chief executive of the Port of Dover, in Kent, told British MPs he has been invited to Calais in France to view tests on the EU's incoming entry/exit system (EES).

He said the port has not been given any details of the scheme's rules but expressed concern it could cause "significant and continued disruption for a very long time".

EES is due to be introduced in May 2023.

It is expected to involve travellers from non-EU countries such the UK having their fingerprints scanned and a photograph taken to register them in a database the first time they enter a member state.

Asked by the Commons' Transport Select Committee what passengers will need to do, Mr Bannister replied: "There is a lot of ongoing dialogue taking place between officials in our government and French officials.

"There is going to be a trial of some new technology which we've been invited along to witness over in Calais in the next couple of weeks.

"So I know activity is ongoing but, as I sit in front of the panel today, we don't have that answer."

Dover expected to bear brunt

When EES is implemented, it will have an effect at the Port of Dover because outbound travellers pass through French border checks before boarding ferries.

Mr Bannister said: "It's going to have a higher impact on families wishing to go abroad next summer."

He told the committee "we haven't seen what the process is" but expressed concerns that the time it takes to process a car could increase from about 90 seconds to 10 minutes.

He said: "We've heard that there could be some technology that is sort of an iPad with handholds to register the fingerprints.

"But we haven't trialled it. How do you pass that around a car? What happens if you've got a child asleep in the back seat?

"What if it's a dark stormy night and the lighting is inappropriate? We haven't tested all of that," he said.

"We need to know what the rules of the game are.

"We need to see what the technology is going to be, we need a sufficient amount of time to trial, test and train to use that technology before implementation."

Tens of thousands of families had their holiday plans ruined in July by kilometres of gridlocked traffic around the Kent port.

This was blamed on a lack of French border police.

Asked what steps have been taken to avoid chaos returning, Mr Bannister told MPs: "What we anticipate is that we would have an earlier warning if they are unable to man to appropriate resource levels.

"Then we can enact any of the contingency plans on our side to try and do the traffic management."

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Sri Lanka-India Test series schedule

 

  • 1st Test India won by 304 runs at Galle
  • 2nd Test Thursday-Monday at Colombo
  • 3rd Test August 12-16 at Pallekele
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India squads

T20: Rohit Sharma (c), Shikhar Dhawan, KL Rahul, Sanju Samson, Shreyas Iyer, Manish Pandey, Rishabh Pant, Washington Sundar, Krunal Pandya, Yuzvendra Chahal, Rahul Chahar, Deepak Chahar, Khaleel Ahmed, Shivam Dube, Shardul Thakur

Test: Virat Kohli (c), Rohit Sharma, Mayank Agarwal, Cheteshwar Pujara, Ajinkya Rahane, Hanuma Vihari, Wriddhiman Saha (wk), Ravindra Jadeja, Ravichandran Ashwin, Kuldeep Yadav, Mohammed Shami, Umesh Yadav, Ishant Sharma, Shubman Gill, Rishabh Pant

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Produced by: Dharma Productions, Azure Entertainment
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Company: Idealz

Founded: January 2018

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Rating: 4/5

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How to help

Donate towards food and a flight by transferring money to this registered charity's account.

Account name: Dar Al Ber Society

Account Number: 11 530 734

IBAN: AE 9805 000 000 000 11 530 734

Bank Name: Abu Dhabi Islamic Bank

To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae

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

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: October 13, 2022, 9:43 AM