British Prime Minister Boris Johnson spoke to US President Joe Biden from London after his inauguration. Reuters
British Prime Minister Boris Johnson spoke to US President Joe Biden from London after his inauguration. Reuters
British Prime Minister Boris Johnson spoke to US President Joe Biden from London after his inauguration. Reuters
British Prime Minister Boris Johnson spoke to US President Joe Biden from London after his inauguration. Reuters

The 35-minute phone call that revitalised the UK-US alliance


Thomas Harding
  • English
  • Arabic

Boris Johnson on Saturday became the first European leader to speak to US President Joe Biden, consigning Donald Trump’s tenure to the past to cement Britain’s transatlantic alliance once again.

Despite irritation among some US Democrats over the British prime minister’s tolerance of Mr Trump’s excesses and ill-judged remarks on Barack Obama's heritage, it appears Washington has forgiven Mr Johnson.

Distancing himself from the previous president, Mr Johnson told Mr Biden that his election victory in November was “a moment of hope in a dark time”.

It is understood that the prime minister was referring to the pandemic, as well as the turmoil in America over Mr Trump’s unfounded accusation that the presidential election was “stolen” and the subsequent storming of the US Capitol on January 6.

During the call, Mr Johnson welcomed Mr Biden’s announcement that America would rejoin the Paris climate accord and the World Health Organisation.

Downing Street was quick to emphasise the shared policy objectives between the two leaders, on climate change in particular, and officials released a picture of Mr Johnson with his thumb raised, laughing during the conversation that he said was “warm and friendly”.

Whitehall insiders are said to be delighted that Mr Biden made the call to the prime minister ahead of other world leaders, suggesting that the president wishes to remain close to what is traditionally one of America’s closest allies.

The pair discussed “a very wide range of subjects” and Mr Johnson welcomed the “fantastic initial announcements from the Biden administration and moment of hope in a dark time”, government sources said.

A significant fillip for Mr Johnson will be sealing a trade deal with the US in the post-Brexit era, an issue the pair discussed during the 35-minute phone call.

“Great to speak to President @JoeBiden this evening. I look forward to deepening the longstanding alliance between our two countries as we drive a green and sustainable recovery from Covid-19,” Mr Johnson tweeted.

In response, the White House said Mr Biden had signalled his intention to “strengthen the special relationship between our countries and revitalise transatlantic ties”. He emphasised the critical role of Nato, in a further distancing from Mr Trump who was highly circumspect and critical of the alliance.

“President Biden also noted the importance of co-operation, including through multilateral organisations, on shared challenges such as combating climate change, containing Covid-19 and ensuring global health security,” the White House statement said. “He noted his readiness to work closely with Prime Minister Johnson as the United Kingdom hosts the G7 and United Nations Climate Change Conference (COP26) this year.

“The leaders also discussed the need for co-ordination on shared foreign policy priorities, including China, Iran and Russia.”

The prime minister will receive a further boost in June with Mr Biden likely to make his first presidential trip overseas to the G7 summit of world leaders in Cornwall, south-west England.

Emphasising the common views held by the two leaders, a Downing Street statement said: “They noted the significant challenges facing the world during the pandemic, but also the unparalleled opportunities to build back better and greener together. The prime minister praised President Biden’s early action on tackling climate change and commitment to reach net zero by 2050.”

With Mr Trump facing an impeachment trial for incitement to insurrection next month following the Capitol incident, the statement said that both leaders reaffirmed their commitment to “protecting democracy.”

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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