Boris Johnson risks an early dispute with US President-elect Joe Biden over Britain’s potential breach of international law that could put Northern Ireland’s peace deal at risk.
As part of Brexit negotiations, the prime minister introduced the Internal Markets Bill (IMB) that would allow Britain to override export rules in its Withdrawal Agreement with the European Union for goods travelling from Britain to Northern Ireland.
When the Bill was introduced to Parliament earlier this year, ministers admitted that it broke international law in a “specific and limited way” as it would overrule the agreement already struck with the EU.
There were also deep misgivings that the legislation could have a negative effect on the peace deal in Northern Ireland by creating a ‘hard border’ with the Irish Republic. Currently there is no customs border between the countries.
Mr Biden, who has strong Irish roots, reacted negatively to the IMB announcement in September, tweeting: “We can’t allow the Good Friday Agreement that brought peace to Northern Ireland to become a casualty of Brexit.”
The US president-elect is an ardent supporter of the agreement as a cornerstone to political stability and peace in Northern Ireland.
Mr Biden’s concerns were highlighted by Gordon Brown, the former Labour prime minister. “He is not going to allow a trade deal with Britain to happen if we in some way breach the Good Friday Agreement,” he told the BBC.
Sir Keir Starmer, the current Labour leader, said Mr Biden would take a “dim view” of the move “if our Prime Minister ploughs ahead with proposals to undermine that agreement”, and urged the government to drop the legislation.
The IMB issue is likely to feature prominently when Mr Biden and Mr Johnson have their first conversation and especially when Britain enters into discussions over a trade agreement with the US in the post-Brexit era.
If passed, the legislation would introduce laws allowing Whitehall to overrule the export rules for goods travelling from Britain to Northern Ireland.
While the EU and Mr Biden regard this as a threat to stability in Northern Ireland and a breach of an international treaty, Mr Johnson’s team sees it as a safety net to protect British goods if no trade deal is struck with Europe by the end of this year.
The clauses are expected to be defeated in the House of Lords on Monday but the government could still force through legislation and Mr Johnson has shown no sign of backing down.
“The whole point of that bill is to protect and uphold the Good Friday Agreement and the peace process in Northern Ireland,” he said yesterday. “That’s one of the things that we’re united on with our friends in the White House.”
The situation might be resolved if Britain is able to strike a trade deal with the EU in the coming weeks, allowing Mr Johnson to work on building a stronger relationship with the new US president
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
What is the definition of an SME?
SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.
A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors.
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Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
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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
