UK Prime Minister Boris Johnson opened the G7 summit in Cornwall, south-west England, with a message that the world must avoid the errors of previous recoveries in the pandemic as the US set out its stall for building back through global infrastructure.
The British host of the gathering had a tough Saturday morning as meetings got under way in earnest. He was pressed by European leaders to live up to the terms of the Brexit deal that London now says cannot be implemented for Northern Ireland trade.
Mr Johnson told his European guests he may soon be forced to suspend a key part of the Brexit deal agreed to only last year.
He said EU leaders needed to "get it into their heads" that the protocol was interfering with UK markets. "I think that to be fair there's quite a lot of misunderstanding around the EU about the situation in Northern Ireland, the balance of the Good Friday Agreement, the peace process," he said. "I was just, in a gentle way, getting across what that means and I think that we'll have some pragmatic solutions."
The leaders of the G7 – the US, Canada, Britain, Germany, Italy, France and Japan – view the gathering at Carbis Bay as a chance to show the world that the richest democracies can offer help to a recovering global economy.
At the opening session, the members – who were joined by South Korean, Indian, Australian and South African leaders – heard from the chairman of the Economic Resilience Panel Mark Sedwill before the second session on foreign policy.
The meetings are the first stops for US President Joe Biden on the first overseas trip of his presidency.
Also in his schedule are a Nato summit, an EU meeting and a face-to-face encounter with Russia's Vladimir Putin in Switzerland before he returns to the US.
Washington is determined to ensure there is a positive way forward for middle-income countries seeking to restore economic growth after the hit taken during the Covid-19 pandemic.
"We'll be announcing 'build back better for the world', an ambitious new global infrastructure initiative with our G7 partners," a US official said.
Mr Biden suggested to G7 summit leaders that democratic countries should develop their own version of China's infrastructure-focused Belt and Road initiative as a platform for global recovery.
The G7 show of unity was tested on Saturday by the standoff between the UK and the European countries over the post-Brexit deal.
French president Emmanuel Macron offered Mr Johnson a reset in the relationship on Saturday morning, following months of confrontation, particularly over the Northern Ireland protocol.
Mr Macron said the two countries shared a vision for international and transatlantic relations, including on arms control, but the need to resolve Brexit tension was pressing.
He told Mr Johnson that Britain needed to uphold the Brexit deal it signed, despite a stalemate over new trade rules in Northern Ireland.
Britain should "keep its word" to Europe, Mr Macron said.
French officials said afterwards that the president, strongly underlined that "this re-engagement requires the British to honour the promises made to Europeans and to respect the Brexit agreement".
The UK leader also discussed the issue with German Chancellor Angela Merkel, European Commission President Ursula von der Leyen and European Council President Charles Michel, on Saturday.
British officials said both sides had agreed on the need for continued meaningful engagement to resolve the outstanding issues.
Canadian Prime Minister Justin Trudeau also said it was important to resolve these problems.
Foreign Secretary Dominic Raab attacked the EU for its "bloody-minded" approach to the dispute over trade in Northern Ireland.
“They can be more pragmatic about the implementation of the Northern Ireland protocol in a way that is win-win or they can be bloody minded and purist about it, in which case I am afraid we will not allow the integrity of the UK to be threatened,” he said.
Mr Johnson, meanwhile, added another plank to the pandemic recovery by securing backing for a 100-day action plan for how countries tackle health threats, including new infectious diseases affecting humans.
"Under this agreement, the world's leading democracies will commit to preventing a global pandemic from ever happening again, ensuring the devastation caused by Covid-19 is never repeated."
Killing of Qassem Suleimani
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
The biog
Name: Abeer Al Shahi
Emirate: Sharjah – Khor Fakkan
Education: Master’s degree in special education, preparing for a PhD in philosophy.
Favourite activities: Bungee jumping
Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
The specs
Engine 60kwh FWD
Battery Rimac 120kwh Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) chemistry
Power 204hp Torque 360Nm
Price, base / as tested Dh174,500
Banthology: Stories from Unwanted Nations
Edited by Sarah Cleave, Comma Press
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
What went into the film
25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
1,000 VFX artists
3,000 technicians
10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The five pillars of Islam
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
UAE group fixtures
Sunday Feb 23, 9.30am, v Iran
Monday Feb 25, 1pm, v Kuwait
Tuesday Feb 26, 9.30am, v Saudi
UAE squad
Ahmed Raza, Rohan Mustafa, Alishan Sharafu, Ansh Tandon, Vriitya Aravind, Junaid Siddique, Waheed Ahmed, Karthik Meiyappan, Basil Hameed, Mohammed Usman, Mohammed Ayaz, Zahoor Khan, Chirag Suri, Sultan Ahmed
Results
6.30pm: Maiden Dh165,000 (Dirt) 1,200m
Winner: Barack Beach, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Handicap Dh170,000 (D) 1,200m
Winner: Way Of Wisdom, Connor Beasley, Satish Seemar.
7.40pm: Maiden Dh165,000 (D) 1,900m
Winner: Woodditton, Connor Beasley, Ahmad bin Harmash.
8.15pm: Handicap Dh185,000 (D) 2,000m
Winner: Secret Trade, Sandro Paiva, Ali Rashid Al Raihe.
8.50pm: Handicap Dh185,000 (D) 1,600m
Winner: Mark Of Approval, Antonio Fresu, Mahmood Hussain.
9.25pm: Handicap Dh165,000 (D) 2,000m
Winner: Tradesman, Pat Dobbs, Doug Watson.
Profile of Tamatem
Date started: March 2013
Founder: Hussam Hammo
Based: Amman, Jordan
Employees: 55
Funding: $6m
Funders: Wamda Capital, Modern Electronics (part of Al Falaisah Group) and North Base Media
