The UK government is set to announce new plans that will impose tougher fines on water companies to tackle pollution.
Environment secretary Therese Coffey is expected to unveil the measures next week.
The government aims to "make polluters pay" and establish a "water restoration fund" where fines levied on water companies will be placed.
Under the proposed plans, water companies could face unlimited fines and penalties, with the most serious cases being taken through criminal proceedings.
According to the latest figures released by the Environment Agency, there were 301,091 sewage spills in 2022, averaging 824 a day.
Although discharges fell by 19 per cent last year, this was attributed to dry weather and not the efforts of water companies, the agency said.
Part of the plan is to strengthen the Environment Agency's ability to impose sanctions on water companies without going through the courts, with a six-week consultation to be published.
The government is also said to support the lifting of the upper cap on civil penalties on water companies, enabling unlimited fines.
The new measures are expected to form part of plans to toughen enforcement against companies following pressure from campaigners to tackle pollution.
Opposition parties, including Labour and the Liberal Democrats, have criticised the government over the issue.
The Water Restoration Fund will direct money from higher fines and penalties, taken from water company profits rather than customers, back into rivers, lakes, and streams where it is needed.
The current penalties and fines imposed by Ofwat are returned to the Treasury, but under the new plans, the money will be redirected to the Department for Environment, Food and Rural Affairs.
Campaigners have accused water companies of discharging sewage more often than they should, even during dry weather, and have called for water companies to invest in more infrastructure.
The new fund aims to support community-led projects, including the restoration of wetlands, the creation of new habitats, and adding natural bends to rivers to improve water quality.
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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
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
War 2
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Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
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Available: Now
