The Minneapolis City Council building. AP
The Minneapolis City Council building. AP
The Minneapolis City Council building. AP
The Minneapolis City Council building. AP

Minneapolis council holds crucial vote with Muslim members away for Eid


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With three Muslim council members away to observe the Eid Al Adha holiday this week, the Minneapolis City Council narrowly voted to kill a measure that would have put a rent control question on the ballot this autumn.

Most of the council supports a 3 per cent annual residential rent cap. But with Aisha Chughtai, Jeremiah Ellison and Jamal Osman off on Wednesday, the council voted not to move the measure forward, Minnesota Public Radio reported.

“Islamophobia,” one person in the audience yelled during the meeting, the Star Tribune reported.

Such accusations raged on Twitter, while at the same time, rent control opponents expressed relief that the issue was off the table.

“Regardless your views on rent stabilisation, the decent thing for council leadership to do today would have been to exercise [with] ease their ability to take up this policy item at a near future time, when all could participate without religious exclusion. It's that simple,” council member Mitra Jalali said in a tweet.

The Wednesday meeting was scheduled more than a year ago to accommodate Eid, which at the time had been predicted to fall on Thursday, Minnesota Public Radio reported. But the date is subject to change depending on lunar observations.

Minnesota state attorney general Keith Ellison took note: “I'm deeply disappointed at the insensitivity of taking a critical vote without Muslim members present due to Eid celebrations.”

According to City Clerk Casey Carl, the first time anyone raised a concern about Eid was on Monday – too late to change the date of the council meeting under state law, the Star Tribune reported.

Ms Carl apologised, but said that for years the city clerk’s office has relied on council members to make it aware of religious or cultural conflicts.

In a statement released after the vote, Mr Ellison, Mr Osman and Ms Chughtai criticised the vote as going against “the spirit of inclusion Minneapolis prides itself on”.

“Muslims have been serving on the Minneapolis City Council for a decade now and thousands of Muslims live in our city. Our holy days and celebrations are not unknown or mysterious,” the leaders said.

They said council leadership could have scheduled the meeting at a later date, delayed the vote to the next full council meeting or advanced the policy to a committee for further changes.

Associated Press contributed to this report

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: June 30, 2023, 6:02 AM