Ireland's Phil Hogan has resigned as EU trade commissioner because of the controversy over breaches of Covid-19 guidelines during a recent trip to his home country.
Mr Hogan, 60, tendered his resignation to European Commission President Ursula von der Leyen on Wednesday after strong indications from the Irish government that he should step down.
The scandal, he said, had become a distraction that would undermine his work "in the key months ahead".
"I deeply regret that my trip to Ireland – the country that I have been so proud to represent as a public servant for most of my adult life – caused such concern, unease and upset," he said.
“As a public representative I should have been more rigorous in my adherence to the Covid guidelines.”
Ms von der Leyen, who had demanded he submit a detailed report of his trip after the row erupted, said she respected his decision, thanking him for his "tireless work".
Irish Prime Minister Micheal Martin and his coalition partners said Mr Hogan's resignation was "the correct course of action given the circumstances of the past week".
"We all have a responsibility to support and adhere to public health guidelines and regulations," they said.
They said Mr Hogan's replacement would be considered "in due course".
Mr Martin's government said on Tuesday that Mr Hogan flouted three coronavirus guidelines on his recent trip home from Brussels.
It said Mr Hogan, who became trade commissioner in 2019 as the EU was in the middle of trade battles with the US and tension with China, broke a 14-day quarantine after arriving in Ireland and failed to limit his travel in the middle of a localised lockdown.
He also attended a parliamentary golf club dinner on August 19, in breach of coronavirus restrictions on social gathering numbers announced 24 hours earlier.
The dinner was attended by about 80 people, including a cabinet minister, a Supreme Court judge and politicians from Ireland's upper and lower houses of Parliament.
It is now being investigated by police and has prompted high-level resignations in Irish politics, including agriculture minister Dara Calleary and the deputy chairman of the upper house of Parliament, Jerry Buttimer.
Mr Hogan has always denied breaking coronavirus legislation and said he tried to act in line with voluntary government guidelines.
But earlier on Wednesday Mr Martin said the government felt anger and annoyance at "the degree to which the commissioner has undermined public confidence in adherence to the health guidelines".
"We're very clear on all three fronts he breached the guidelines," he said.
The move will force the EU’s executive office to replace a key commissioner in the middle of the pandemic crisis and as the final months on a future deal with post-Brexit Britain approach.
Mr Hogan, a former minister from Deputy Prime Minister Leo Varadkar’s Fine Gael party, considered a bid to become the next director general of the World Trade Organisation in June before deciding against running.
Last week, Irish Health Minister Stephen Donnelly said the republic was “at the tipping point” after weekly coronavirus cases surged from 61 a few weeks ago to 533 last week.
There are restrictions to social gatherings indoors and crowds attending outdoor events, including sports, have since been reduced from 200 to 15.
Those aged over 70 are again being asked to stay at home as much as possible and workers are encouraged to work remotely.
There are more than 27,908 known cases of Covid-19 in Ireland and more than 1,700 deaths.
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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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
