Two flights full of asylum seekers were sent to Martha's Vineyard, Massachusetts, by Florida Governor Ron DeSantis. EPA
Two flights full of asylum seekers were sent to Martha's Vineyard, Massachusetts, by Florida Governor Ron DeSantis. EPA
Two flights full of asylum seekers were sent to Martha's Vineyard, Massachusetts, by Florida Governor Ron DeSantis. EPA
Two flights full of asylum seekers were sent to Martha's Vineyard, Massachusetts, by Florida Governor Ron DeSantis. EPA

Treasury investigates Florida governor's migrant flight


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The Treasury Department's watchdog is investigating whether Florida Governor Ron DeSantis improperly used federal pandemic aid to fly migrants to Martha’s Vineyard as part of his effort to “transport illegal immigrants to sanctuary destinations".

At issue is whether millions of dollars in interest earned on State and Local Fiscal Recovery Funds, disbursed through the American Rescue Plan, was used to fly about 50 Venezuelans from Texas to Massachusetts in mid-September, with a stopover in Florida on the way.

The recovery funds programme has strict requirements on how the money can be spent.

Documents indicate Florida officials paid local company Vertol Systems $1.56 million for the Martha's Vineyard flight and possibly for one to Delaware, the home state of President Joe Biden, which ultimately did not happen.

The inspector general's office has audit work planned on "recipients' compliance with eligible use guidance", Treasury deputy inspector general Richard Delmar wrote to Senator Ed Markey, who requested the investigation.

Venezuelan migrants outside St Andrew's Church in Edgartown, Massachusetts, after being 'relocated' to Martha's Vineyard. Reuters
Venezuelan migrants outside St Andrew's Church in Edgartown, Massachusetts, after being 'relocated' to Martha's Vineyard. Reuters

“We plan to get this work under way as quickly as possible, consistent with meeting our other oversight mandates and priorities,” the letter said. Treasury does not have a confirmed inspector general.

Mr Markey wrote to the inspector general's office in September, shortly after Mr DeSantis arranged the trip, which received wide publicity.

The governor said the migrants travelled voluntarily to Massachusetts.

“The use of federal Covid relief funds in this manner runs contrary to congressional intent and appears to violate federal law,” Mr Markey and six other Massachusetts legislators wrote in a September 17 letter to Mr Delmar.

Mr Markey said Mr DeSantis was “effectively using Covid-19 relief to score political points by exploiting vulnerable immigrants".

  • Two busloads of migrants from the US-Mexico border arrived outside Vice President Kamala Harris's home in Washington on Thursday. AFP
    Two busloads of migrants from the US-Mexico border arrived outside Vice President Kamala Harris's home in Washington on Thursday. AFP
  • Texas Governor Greg Abbott confirmed that the buses from Texas arrived at the Naval Observatory in north-west Washington. AFP
    Texas Governor Greg Abbott confirmed that the buses from Texas arrived at the Naval Observatory in north-west Washington. AFP
  • Since April, Mr Abbott has ordered buses to carry thousands of migrants from Texas to Washington, New York City and Chicago to highlight criticisms of President Joe Biden’s border policy. AFP
    Since April, Mr Abbott has ordered buses to carry thousands of migrants from Texas to Washington, New York City and Chicago to highlight criticisms of President Joe Biden’s border policy. AFP
  • Migrants from Venezuela, who boarded a bus in Texas, wait to be transported to a local church by volunteers after being dropped off in Washington. AFP
    Migrants from Venezuela, who boarded a bus in Texas, wait to be transported to a local church by volunteers after being dropped off in Washington. AFP
  • Many migrants who cross the US border illegally from Mexico are temporarily shielded from deportation to seek asylum in immigration court or released on humanitarian role, once they are freed by US authorities. AFP
    Many migrants who cross the US border illegally from Mexico are temporarily shielded from deportation to seek asylum in immigration court or released on humanitarian role, once they are freed by US authorities. AFP
  • Mr Abbott said Texas sent two buses of migrants to Washington in an effort to call on Mr Biden's administration to 'secure the border. AFP
    Mr Abbott said Texas sent two buses of migrants to Washington in an effort to call on Mr Biden's administration to 'secure the border. AFP
  • A volunteer assists migrants who were bused from Texas to Washington. AFP
    A volunteer assists migrants who were bused from Texas to Washington. AFP
  • Mr Abbott and other Republican governors have bused migrants to Democratic-held cities across the US in opposition to Mr Biden's border policies. AFP
    Mr Abbott and other Republican governors have bused migrants to Democratic-held cities across the US in opposition to Mr Biden's border policies. AFP
  • A migrant at Martha’s Vineyard, Massachusetts. Reuters
    A migrant at Martha’s Vineyard, Massachusetts. Reuters
  • Venezuelan migrants are seen at the Martha's Vineyard Regional High School, Massachusetts. Reuters
    Venezuelan migrants are seen at the Martha's Vineyard Regional High School, Massachusetts. Reuters
  • Martha's Vineyard, a summer holiday destination, has a year-round population of only 20,000 people. Reuters
    Martha's Vineyard, a summer holiday destination, has a year-round population of only 20,000 people. Reuters
  • Venezuelan migrants play football outside the Martha's Vineyard Regional High School, Massachusetts. Reuters
    Venezuelan migrants play football outside the Martha's Vineyard Regional High School, Massachusetts. Reuters
  • Volunteers assist Venezuelan migrants outside St Andrew's Church in Martha's Vineyard. Reuters
    Volunteers assist Venezuelan migrants outside St Andrew's Church in Martha's Vineyard. Reuters

The White House has called the trip to Martha’s Vineyard a “cruel, premeditated political stunt".

Mr Delmar did not indicate when the probe would be complete.

Other law enforcement agencies throughout the US have launched investigations of migrant trips arranged by Republican politicians to Democratic strongholds.

The flight has also spawned an investigation by a Texas sheriff and two lawsuits.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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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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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

The biog

Birthday: February 22, 1956

Born: Madahha near Chittagong, Bangladesh

Arrived in UAE: 1978

Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.

Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”

Updated: June 21, 2023, 5:58 AM