Mitch McConnell secures re-election to US Senate


Bryant Harris
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Majority Leader Mitch McConnell has secured his seventh term in the US Senate after fending off an election challenge in Kentucky from Democrat Amy McGrath.

Although Ms McGrath raised $30 million more than Mr McConnell, it was not enough to boot the majority leader out of office in the Republican-dominated state.

In a nine-minute speech, Mr McConnell praised his opponent – a former Marine fighter pilot and called for unity.

“My opponent ran a spirited race, she stood up for her views and won a lot of votes,” Mr McConnell said. “I applaud her willingness to step forward.”

He then called for unity before siding with the Republican race on culture war issues while rebuking chatter of dramatically transforming the Senate and the courts should Democrats win control of the chamber.

“We don’t know yet which presidential candidate will begin a new term when January ends,” he said. “We don’t know which party will control the Senate, but some things are certain.

“We know great challenges will remain before us, challenges that could not care less about our political polarisation. We know our next president will need to unite the country.”

But he also rebuked Black Lives Matter protesters for tearing down statues, including those of Confederate generals and US founders who owned slaves, in recent months.

“This is no time to tear down statues of our founders and heroes,” he said. “This is the time to follow their example.”

Mr McConnell also addressed calls from much of the Democratic base to abandon the Senate filibuster, which requires 60 votes to get most legislation passed instead of 51, as well as expand the size of the Supreme Court.

“This is no time to declare war on our institutions because one side is angry that the framers made it hard to achieve radical change,” he said.

Mr McConnell expedited the confirmation of Supreme Court Justice Amy Coney Barrett last month despite refusing to give former president Barack Obama’s nominee Merrick Garland a Senate vote in 2016 on the grounds it was an election year.

This drastically tipped the court’s balance of power to favour conservative-aligned justices, and prompted calls among many Democratic rank and file voters to expand the Supreme Court’s size – a process known as court packing.

Former vice president Joe Biden has vowed to establish a bipartisan committee to study potential court reforms should he win the presidency.

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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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