UK prime minister Boris Johnson told James Dyson he would 'fix' his company's tax issue while providing pandemic support. Getty Images
UK prime minister Boris Johnson told James Dyson he would 'fix' his company's tax issue while providing pandemic support. Getty Images
UK prime minister Boris Johnson told James Dyson he would 'fix' his company's tax issue while providing pandemic support. Getty Images
UK prime minister Boris Johnson told James Dyson he would 'fix' his company's tax issue while providing pandemic support. Getty Images

Boris Johnson stands firm after telling billionaire Sir James Dyson he’d 'fix' tax issues


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UK Prime Minister Boris Johnson has said he makes "absolutely no apologies" for telling billionaire businessman Sir James Dyson he would "fix" tax issues for Dyson workers making ventilators during the pandemic.

Text messages obtained by the BBC showed that Mr Dyson contacted Mr Johnson directly, seeking assurances there would be no change in tax status for his Singapore-based staff coming to Britain to work on the emergency project.

The exchange took place in March 2020 at the start of the pandemic when the government was appealing to companies to supply ventilators over fears the NHS would run out.

At the time, health officials estimated the NHS would need 20,000 ventilators on top of the 5,000 it had – along with an existing 900 specifically to treat children.

Mr Dyson first contacted the Treasury but received no reply and then approached Mr Johnson.

“We are ready. But nobody seems to want us to proceed,” Mr Dyson said in a text.

Mr Johnson replied: “I will fix it tomo! We need you. It looks fantastic.”

The prime minister texted him again to say the issue was resolved. “[UK Chancellor] Rishi [Sunak] says it is fixed!! We need you here!!”

When Mr Dyson sought further assurance, Mr Johnson replied: “James, I am First Lord of the Treasury and you can take it that we are backing you to do what you need.”

A series of cases have raised questions over whether former ministers, civil servants and some businessmen are granted easy access to the Conservative government.

Sir Keir Starmer, the leader of the opposition Labour Party, accused the accused the government of cronyism.

But Mr Johnson said he had not broken any rules and had informed officials about the exchange with Mr Dyson.

"I make absolutely no apology at all for shifting heaven and earth and doing everything I possibly could, as I think any prime minister would in those circumstances, to secure ventilators for the people of this country," he said.

Two weeks after the text message exchange, Mr Sunak told the Commons Treasury Committee that the tax status of people who came to the UK to provide emergency support during the pandemic would not be affected.

The UK government said it did everything it could to get the right equipment during testing times.

“At the height of the pandemic, there were genuine fears that we would quickly run out of ventilators, leaving the NHS unable to treat patients and putting many lives at risk,” a spokesman said.

“As the public would expect, we did everything we could in extraordinary times to protect our citizens and get access to the right medical equipment.”

Ministerial code stipulates that a private secretary or official should be present for any discussions relating to government business.

Shadow Business Secretary Lucy Powell said the case was “jaw-dropping”.

“It stinks that a billionaire businessman can text the prime minister and get an immediate response and, apparently, an immediate change in policy,”she said.

Mr Dyson spent £20 million ($27.8m) designing the new ventilators, but the equipment was no longer required.

He said his company did not receive "any benefit from the project" and it was "absurd to suggest that the urgent correspondence was anything other than seeking compliance with rules".
The messages came to light as a row over lobbying in Westminster continued, in which former prime minister David Cameron texted Mr Sunak seeking government help for struggling finance company Greensill Capital.

The drill

Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.

Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”

Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”

Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.” 

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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PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”

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  • Under core protection there will be no automatic right to family reunion
  • Refugees will have a reduced right to public funds
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Founder: Nour Sabri

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Funding stage: Seed investment

Initial investment: $200,000

Investors: Amr Manaa (director, PwC Middle East)