Joe Biden believes the vaccine mandate impasse will prove temporary. AFP
Joe Biden believes the vaccine mandate impasse will prove temporary. AFP
Joe Biden believes the vaccine mandate impasse will prove temporary. AFP
Joe Biden believes the vaccine mandate impasse will prove temporary. AFP

US court halts Joe Biden vaccine mandate for larger firms


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The US federal appeals court on Saturday temporarily halted Joe Biden's bid to make Covid-19 vaccinations compulsory for workers at firms with 100 or more workers.

The 5th US Circuit Court of Appeals granted an emergency stay of the requirement by the federal Occupational Safety and Health Administration that those workers be vaccinated by January 4 or face mask requirements and weekly tests.

Louisiana Attorney General Jeff Landry said the action stops US President Biden “from moving forward with his unlawful overreach.”

“The president will not impose medical procedures on the American people without the checks and balances afforded by the constitution,” said a statement from Mr Landry, a Republican.

At least 27 states filed lawsuits challenging the rule in several circuits, some of which were made more conservative by the judicial appointments of former Republican President Donald Trump.

The 5th Circuit, based in New Orleans, said it was delaying the federal vaccine requirement because of potential “grave statutory and constitutional issues” raised by the plaintiffs.

The government must provide an expedited reply to the motion for a permanent injunction Monday, followed by petitioners’ reply on Tuesday.

The Biden administration has been encouraging widespread vaccinations as the quickest way to end the pandemic that has claimed more than 750,000 lives in the United States.

The administration says it is confident that the requirement, which includes penalties of nearly $14,000 per violation, will withstand legal challenges.

Further reason for hope came for Mr Biden on Saturday when the House on Saturday approved a $1 trillion US infrastructure package of road and other projects after Democrats resolved a months-long standoff between progressives and moderates.

MATCH INFO

Syria v Australia
2018 World Cup qualifying: Asia fourth round play-off first leg
Venue: Hang Jebat Stadium (Malacca, Malayisa)
Kick-off: Thursday, 4.30pm (UAE)
Watch: beIN Sports HD

* Second leg in Australia scheduled for October 10

UAE currency: the story behind the money in your pockets
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

Updated: November 06, 2021, 9:48 PM