US president Donald Trump signing an executive order to impose tighter vetting of travellers entering the United States, at the Pentagon in Washington, US on January 27, 2017. Carlos Barria/Reuters
US president Donald Trump signing an executive order to impose tighter vetting of travellers entering the United States, at the Pentagon in Washington, US on January 27, 2017. Carlos Barria/Reuters
US president Donald Trump signing an executive order to impose tighter vetting of travellers entering the United States, at the Pentagon in Washington, US on January 27, 2017. Carlos Barria/Reuters
US president Donald Trump signing an executive order to impose tighter vetting of travellers entering the United States, at the Pentagon in Washington, US on January 27, 2017. Carlos Barria/Reuters

Executive orders: What Donald Trump can do with the stroke of a pen


  • English
  • Arabic

NEW YORK // Donald Trump has got off to a rapid start as US president, enacting a string of policies that formed key parts of his election platform.
He has made prolific use of executive orders to kick-start his term in office, as well as a broader range of executive actions - tools that allow him to set the tone of his presidency and direct federal agencies without having to wait for approval from Congress.
With the stroke of a pen, a president can set policy, manage agencies and even go to war without having to appeal to Congress.
That brings both strength and weakness, as Mr Trump found out on Saturday night when a judge in Brooklyn, New York, ordered a partial stay on his programme to keep out travellers from seven Muslim-majority nations.
Every president going back to George Washington has made use of executive orders, despite the fact that they are not mentioned directly in the constitution and are only vaguely defined.
Executive powers - which include executive memos and proclamations - are widely believed to based on a clause in section two of the constitution.
It is essentially an order from the president which directs how a federal agency is to use its resources.
Critics say this contradicts the spirit of the US constitution, which tries to balance different branches of government and prevent any one of them from acting unilaterally.
That means a president has to be careful not to overstep the mark.
Although executive orders carry the weight of law, they cannot be used to make law. Nor can they be used to appropriate money from the treasury.
That would encroach on powers reserved by Congress.
"We have the separation of powers system, but within the separation of powers different branches can act independently up to a point," said Robert Shapiro, a professor at Columbia University's department of political science.
In other words, presidents can only use them within limits defined by Congress and the constitution.
So when Mr Trump issued an executive order on building the wall with Mexico, he was asking the department of homeland security to direct its resources towards its construction as a priority. But he may still need congressional support to make it a reality.
"The question is, is the money they have enough to build the wall," Prof Shapiro said.
"The answer looks like 'no'. The figure of US$18 billion [Dh66bn] looks sufficiently high to require additional congressional legislation."
Even with such checks, the use of executive orders is fraught with political danger.
Barack Obama was subject to immense criticism as he relied on the instrument more and more towards the end of his presidency, trying to push through gun and immigration reform in the face of congressional opposition.
Even Mr Trump voiced his anger. "Why is @BarackObama constantly issuing executive orders that are major power grabs of authority?" he tweeted in 2012.
Now that he has taken over as president, the billionaire property developer is realising their merits.
By signing an executive order, Mr Trump was able start rolling back Obamacare on his first day in office by directing federal authorities not to pursue elements of the Affordable Care Act that impose a "fiscal burden" on businesses or individuals.
Repealing the whole act will be a lengthy process. But at a stroke, Mr Trump was able to direct government agencies in such a way that he could undermine some key tenets of the universal healthcare plan and send out a bold statement of intent.
"He promised to take action, he wants to fulfill his promises - at least symbolically," Prof Shapiro said. "The way for him to do it is to do what's easiest and go after the low-hanging fruit."
Mr Obama used similar steps to the set the tone for his administration. On his second full day as president he issued executive orders banning torture by the country's agents and to close the US detention facility at Guantanamo Bay. The Guantanamo order has been blocked by congressional opposition.
Mr Trump is reported to be considering new executive orders to reverse both those decisions.
And although Mr Obama was criticised for relying on executive orders to drive through his policies, his use of them was comparatively modest. He issued 275 - fewer than his two immediate predecessors, George W Bush who issued 291 and Bill Clinton who signed 364 executive orders.
Mr Obama came to rely on them only towards the end of his presidency, after Democrats lost control of Congress to Republicans intent on thwarting his ambitions.
"He was doing it on a lot of visible things - on immigration, on environmental regulation and so forth - that were clearly highly partisan," said Prof Shapiro.
The record is held by Franklin D Roosevelt, with 3,721, in part because he held office for 12 years and in part because he had to deal with both the Great Depression and the Second World War.
foreign.desk@thenational.ae

THE SPECS

      

 

Engine: 1.5-litre

 

Transmission: 6-speed automatic

 

Power: 110 horsepower 

 

Torque: 147Nm 

 

Price: From Dh59,700 

 

On sale: now  

 
Short-term let permits explained

Homeowners and tenants are allowed to list their properties for rental by registering through the Dubai Tourism website to obtain a permit.

Tenants also require a letter of no objection from their landlord before being allowed to list the property.

There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.

Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.

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