Britain's Foreign Secretary Liz Truss meets Australian Foreign Minister and Minister for Women Marise Payne. Photo: Liz Truss / Twitter
Britain's Foreign Secretary Liz Truss meets Australian Foreign Minister and Minister for Women Marise Payne. Photo: Liz Truss / Twitter
Britain's Foreign Secretary Liz Truss meets Australian Foreign Minister and Minister for Women Marise Payne. Photo: Liz Truss / Twitter
Britain's Foreign Secretary Liz Truss meets Australian Foreign Minister and Minister for Women Marise Payne. Photo: Liz Truss / Twitter

UK and Australia announce cyber-security partnership


Neil Murphy
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The UK and Australia have announced a new partnership to tackle cyber-security threats from "malign actors" who seek to use technology to undermine liberal democracies.

Britain's Foreign Secretary Liz Truss met her Australian counterpart Marise Payne in Sydney this week for wide-ranging talks on issues such as defence, trade and infrastructure investment in the Indo-Pacific.

The talks seek to build on the Aukus defence pact signed last year, which caused controversy after Australia ended a plan to procure diesel-electric submarines from France in a deal worth $90 billion.

Australian Foreign Affairs minister Ms Payne said that the new Cyber and Critical Technology Partnership between the two countries would help to secure an "open and free" internet and "protect liberal democratic values".

"Australia is committed to working with partners such as the UK to challenge malign actors who use technology to undermine freedom and democracy," she said. "We will work with allies to maintain an internet environment that is open, free, peaceful and secure, consistent with international law, and which maximises opportunities for economic growth."

The two countries also announced a new arrangement in which billions will be invested in climate and development infrastructure projects in the Indo-Pacific region.

“The UK and Australia are natural partners, and we are determined to play a positive and proactive role by financing and delivering clean infrastructure that is reliable and honest," Ms Truss said.

She said that the deal will help to strengthen democracy in the region as part of a "network of liberty".

Other topics raised during the talks included steps to tackle violence against women and girls and opening education to more women around the world.

Ms Truss's meeting Down Under comes amid mounting speculation over the future of UK Prime Minister Boris Johnson . As one of the most senior members of the Cabinet, Ms Truss is many people's favourite to take the reins of the Conservative Party in parliament.

Britain says it is stepping up its efforts to use private capital to finance major infrastructure projects around the globe, from ports to renewable energy and digital projects.

According to the Foreign and Commonwealth Office, about £8 billion ($10.89bn) in UK-backed financing a year should be available by 2025.

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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Updated: January 20, 2022, 10:57 AM