A man carries a poster of the Swiss People’s Party (SVP) that states ‘Enough is enough!’ during a meeting of the party’s delegates in Brugg, Switzerland. EPA
A man carries a poster of the Swiss People’s Party (SVP) that states ‘Enough is enough!’ during a meeting of the party’s delegates in Brugg, Switzerland. EPA
A man carries a poster of the Swiss People’s Party (SVP) that states ‘Enough is enough!’ during a meeting of the party’s delegates in Brugg, Switzerland. EPA
A man carries a poster of the Swiss People’s Party (SVP) that states ‘Enough is enough!’ during a meeting of the party’s delegates in Brugg, Switzerland. EPA

Swiss voters to decide on EU immigration pact


Nicky Harley
  • English
  • Arabic

Voters in Switzerland are set to decide on Sunday whether to annul a pact with the European Union on the free movement of people, an important test of attitudes towards foreigners, who make up a quarter of the country’s population.

The right-wing Swiss People’s Party (SVP) – the biggest in parliament – has led the charge to take back control of immigration, echoing some of the arguments pro-Brexit politicians used in the run-up to Britain’s exit from the bloc.

But a poll for policy research company gfs.bern found 63 per cent of respondents oppose the SVP proposal and 35 per cent support it, suggesting voters want stability at a time of economic uncertainty caused by the pandemic.

The SVP has painted a gloomy picture of young foreigners supplanting older Swiss, house price increases, overcrowded schools and transport, and construction running wild.

Opponents say the plan would rob businesses of skilled workers and torpedo accords that enhance non-EU member Switzerland’s access to the bloc’s single market.

A “guillotine clause” means ending free movement would topple other bilateral pacts on land and air transport, procurement, research and technical barriers to trade.

The country had 2.1 million resident foreigners in 2019. Sixty-eight per cent of these were citizens of EU states, or of Iceland, Norway or Liechtenstein, which like Switzerland are members of the European Free Trade Association. More than 450,000 Swiss citizens live in the EU.

Should the referendum drive fail, as is expected, the government can turn to its biggest foreign policy headache – a stalled treaty that would cement ties with the bloc but which critics say infringes too much on Swiss sovereignty.

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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. 

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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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Going grey? A stylist's advice

If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”