Biden says lifting state mask mandates a 'big mistake'


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US President Joe Biden on Wednesday said decisions to end the required wearing of masks, such as those made by the governors of Texas and Mississippi, amounted to "Neanderthal thinking" given the increasing death toll from the coronavirus pandemic.

Asked if he had a message for Texas and Mississippi, Mr Biden said: "I think it's a big mistake. Look, I hope everybody's realised by now, these masks make a difference."

Mr Biden said the increasing availability of vaccines was making a difference in containing the spread of Covid-19, but it was critical to remain vigilant about wearing masks, washing hands and maintaining social distance.

"The last thing we need is Neanderthal thinking that, 'in the meantime, everything's fine, take off your mask, forget it'. It still matters," Mr Biden said before a meeting with Republican and Democratic politicians.

He said more than 511,000 people had died of Covid-19 in the US and it would take time before everyone eligible was vaccinated against the disease.

Daily cases in the US remain above 50,000, even after the distribution of more than 100 million vaccine doses to 50 million people, according to federal data.

"It is critical that they follow the science: Wash your hands, hot water, do it frequently. Wear a mask and stay socially distanced. I know you know that. I wish the heck some of our elected officials would," Mr Biden said.

Texas Governor Greg Abbott ordered the most sweeping relaxation of coronavirus restrictions of any US state on Tuesday, lifting a mask mandate and saying most businesses can open at full capacity next week.

Mississippi Governor Tate Reeves on Tuesday also lifted a mask mandates across his state and removed restrictions on business operations.

White House senior adviser Andy Slavitt said the federal government planned to spend $100 million to help bring about the partnership announced on Tuesday between pharmaceutical companies Merck and Johnson & Johnson to accelerate vaccine production.

The infusion will help Johnson & Johnson increase the production of its one-shot vaccine, Mr Slavitt said.

Johnson & Johnson was contracted to deliver 200 million doses to the federal government by the end of May and about a billion doses globally by the end of 2021.

"Over time we believe Merck will be able to double the capacity of Johnson & Johnson," Mr Slavitt said.

Mr Biden said on Tuesday that the US would have enough vaccine supplies to inoculate all adults by May.

Johnson & Johnson, Pfizer and Moderna agreed to deliver 700 million doses by the middle of the year between them.

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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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