Hunter Biden leaves after a court appearance in Wilmington, Delaware, on July 26. AP
Hunter Biden leaves after a court appearance in Wilmington, Delaware, on July 26. AP
Hunter Biden leaves after a court appearance in Wilmington, Delaware, on July 26. AP
Hunter Biden leaves after a court appearance in Wilmington, Delaware, on July 26. AP

What was Hunter Biden's plea deal and why are Republicans after him?


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US President Joe Biden's son Hunter pleaded guilty to tax charges on Wednesday, after a plea agreement was put into disarray when the judge questioned the discarding of a gun charge.

The National takes a look at the continuing case, and why Republicans are seen as interfering with it.

What was Hunter Biden charged with?

Mr Biden was charged with two misdemeanour crimes of failure to pay more than $100,000 in taxes from more than $1.5 million in income in both 2017 and 2018.

What was his plea deal?

Mr Biden was expected to plead guilty after he made an agreement that his defence team reached with prosecutors, who were planning to recommend two years of probation, AP reported.

It also reportedly included an agreement on a separate gun charge, since Mr Biden had been accused of possessing a firearm in 2018 as a drug user, which is a felony charge that carries 10 years in prison.

The agreement would have wiped the gun case from his record, AP reported.

What happened to the plea deal?

US District Court Judge Maryellen Noreika, who was appointed by former president Donald Trump, raised concerns about the specifics of the deal and her role in the proceedings, Bloomberg reported.

Ms Noreika questioned why the gun charge was included in a tax case, and whether the plea agreement protected Mr Biden from charges that might arise from a wider continuing investigation of his business dealings.

The judge said she could not accept the plea deal as it is.

What does President Joe Biden say?

The President has not publicly said much about his son and his legal dealings, other than giving his continued support.

“Hunter Biden is a private citizen, and this was a personal matter for him,” White House press secretary Karine Jean-Pierre said on Wednesday.

“As we have said, the President, the first lady, they love their son and they support him as he continues to rebuild his life.”

“This case was handled independently, as all of you know, by the Justice Department under the leadership of a prosecutor appointed" by Mr Trump."

Why are Republicans after him?

The case and the reported plea agreement became a lightning rod for conservatives.

They claim the Justice Department failed to fully investigate the business dealings of the Biden family, including the President, and gave the younger Biden politically favourable treatment.

The Hunter Biden investigation has been seen by conservatives as representing a double standard in how the Justice Department handles such cases, especially compared to the investigations of Mr Trump.

What are Republicans doing in response?

On the eve of the plea hearing, House Republicans asked the judge to throw out the agreement reached with prosecutors, an unusual step of seeking to intervene in the case.

Jason Smith, chairman of the House ways and means committee, filed a brief urging the judge to consider the testimony of two IRS workers who, during a panel, claimed that Hunter Biden received preferential treatment from the Justice Department, according to the filing.

House Republicans have also launched a series of investigations into the business dealings of Biden family members.

Representatives released an FBI raw intelligence report last week as part of their latest attempt to push unverified claims that Joe and Hunter Biden engaged in corruption in Ukraine.

The contents of Hunter Biden's laptop have also been the subject of intense Republican scrutiny.

He left it in a repair shop and its contents eventually ended up on the internet, including pictures of him apparently taking drugs and in sexual encounters.

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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8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

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