British Prime Minister Boris Johnson is seen on screen during a virtual press conference with US President Joe Biden. EPA
British Prime Minister Boris Johnson is seen on screen during a virtual press conference with US President Joe Biden. EPA
British Prime Minister Boris Johnson is seen on screen during a virtual press conference with US President Joe Biden. EPA
British Prime Minister Boris Johnson is seen on screen during a virtual press conference with US President Joe Biden. EPA

French minister accuses UK of being in 'American lap' over Aukus pact


Simon Rushton
  • English
  • Arabic

A French minister has accused Britain of being America’s junior ally as it struggles to find its place in the world.

Europe Minister Clement Beaune said the UK was in the “American lap” now that it is not in the European Union.

France is angry with the US, Australia and the UK after they signed a three-way defence and tech deal which saw Paris lose jobs and income building Australian submarines.

British Foreign Secretary Liz Truss on Sunday defended the UK’s role in signing up to the Aukus pact with Australia and the US.

France has taken the unprecedented step of recalling its ambassadors to the US and Australia, normally close allies, but so far has not taken official aim at London.

In a series of interviews on French television, Mr Beaune suggested the UK was the “junior partner” which had accepted its “vassalisation” by the US.

“Our British friends explained to us they were leaving the EU to create Global Britain. We can see that this is a return into the American lap and a form of accepted vassalisation,” he said.

“The UK is clearly trying to find its feet, perhaps there was a lack of thought about the strategic future. Today they are hiding in the American fold. I hope that will not be their policy for the decades to come.”

“We see through this partnership, this strategic alliance and after the Kabul crisis, that Global Britain seems to be more about a US junior partner than working with different allies,” he added.

President Emmanuel Macron ordered the recall of his ambassadors in Australia and the US after the announcement of the deal.

Under the trilateral deal, the US and the UK will help the Australian navy acquire for the first time a fleet of nuclear-powered submarines.

It will see nuclear submarines built in Adelaide, South Australia, and will be the first time the UK and US have shared nuclear capabilities with another nation.

Since 2016, France has been in negotiations with Australia to build a fleet of 12 conventional diesel-electric submarines in a deal worth £48 billion ($90bn).

The announcement of Aukus this week also saw Australia cancel its contract with France resulting in the loss of major investment and job opportunities for the nation.

Writing in the Sunday Telegraph, Ms Truss, who was promoted to foreign secretary last week, said Britain would always be a “fierce champion” of freedom and free enterprise around the world.

“But freedoms need to be defended, so we are also building strong security ties around the world,” she wrote.

“It shows our readiness to be hard-headed in defending our interests and challenging unfair practices and malign acts,” she added.

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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Try out the test yourself

Q1 Suppose you had $100 in a savings account and the interest rate was 2 per cent per year. After five years, how much do you think you would have in the account if you left the money to grow?
a) More than $102
b) Exactly $102
c) Less than $102
d) Do not know
e) Refuse to answer

Q2 Imagine that the interest rate on your savings account was 1 per cent per year and inflation was 2 per cent per year. After one year, how much would you be able to buy with the money in this account?
a) More than today
b) Exactly the same as today
c) Less than today
d) Do not know
e) Refuse to answer

Q4 Do you think that the following statement is true or false? “Buying a single company stock usually provides a safer return than a stock mutual fund.”
a) True
b) False
d) Do not know
e) Refuse to answer

The “Big Three” financial literacy questions were created by Professors Annamaria Lusardi of the George Washington School of Business and Olivia Mitchell, of the Wharton School of the University of Pennsylvania. 

Answers: Q1 More than $102 (compound interest). Q2 Less than today (inflation). Q3 False (diversification).

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AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street

The seven points are:

Shakhbout bin Sultan Street

Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

While you're here
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Updated: September 18, 2021, 10:11 PM