• Migrants being processed by US Border Patrol personnel under International Bridge II in Eagle Pass, Texas. AP
    Migrants being processed by US Border Patrol personnel under International Bridge II in Eagle Pass, Texas. AP
  • More than 4,000 migrants crossed into Eagle Pass this week, overwhelming the town whose population is under 30,000. AP
    More than 4,000 migrants crossed into Eagle Pass this week, overwhelming the town whose population is under 30,000. AP
  • Eagle Pass borders the city of Piedras Negras, Mexico, which is across the Rio Grande. AP
    Eagle Pass borders the city of Piedras Negras, Mexico, which is across the Rio Grande. AP
  • Migrants in Eagle Pass. AP
    Migrants in Eagle Pass. AP
  • Migrants walk the Rio Grande searching for a way through the concertina wire and into the U. S. at Eagle Pass, Texas. AP
    Migrants walk the Rio Grande searching for a way through the concertina wire and into the U. S. at Eagle Pass, Texas. AP
  • The US Customs and Border Protection said it has redirected personnel to assist Border Patrol with taking migrants into custody. AP
    The US Customs and Border Protection said it has redirected personnel to assist Border Patrol with taking migrants into custody. AP
  • The approach to the processing centre under International Bridge II in Eagle Pass. AP
    The approach to the processing centre under International Bridge II in Eagle Pass. AP
  • A migrant family from Peru wait to surrender to authorities in Eagle Pass after wading across the Rio Grande river into the United States from Mexico. Reuters
    A migrant family from Peru wait to surrender to authorities in Eagle Pass after wading across the Rio Grande river into the United States from Mexico. Reuters
  • US Border Patrol agents process hundreds of migrants under the International Bridge II in Eagle Pass. AP
    US Border Patrol agents process hundreds of migrants under the International Bridge II in Eagle Pass. AP
  • Migrants in Eagle Pass, Texas. AP
    Migrants in Eagle Pass, Texas. AP

World

US

Elon Musk enters immigration debate with border town visit

Visit to Eagle Pass is latest instance where billionaire has thrown himself into US politics

The National

September 29, 2023

  • English
  • Arabic

Billionaire Elon Musk waded into the US immigration debate by visiting Eagle Pass, a border town in Texas that has recently experienced an influx of migrant crossings.

Thousands of migrants have crossed the Rio Grande to seek asylum in the US. Thousands of migrants have also entered through El Paso and San Diego, California.

Wearing a black T-shirt, cowboy hat and aviator sunglasses, Mr Musk toured the border town with Republican US Representative Tony Gonzales.

The Tesla chief executive noted that he himself is an "immigrant to the United States" and said that he is "extremely pro-immigrant" during a video he posted on X.

Mr Musk urged for "expedited legal approval" to greatly expand the US "legal immigration system" that would welcome "hard-working and honest migrants", Reuters reported him saying. However, he said those rules should prohibit entry for anyone who is "breaking the law".

"We want to do both things – smooth out legal immigration and stop a flow of people that is of such magnitude that we’re leading to a collapse of social services," he said.

Mr Musk also suggested that some migrants seeking asylum in the US were murderers, referring to migrants with specific tattoos.

"You're actually happy that you killed someone," Mr Musk said of people sporting a teardrop-style tattoo.

Immigration – and the US southern border – is a longstanding Republican issue.

Mr Musk's visit to the border city is the latest episode of him wading into US politics.

Elon Musk views the Rio Grande with US Representative Tony Gonzales during a visit to Eagle Pass, Texas.
Elon Musk views the Rio Grande with US Representative Tony Gonzales during a visit to Eagle Pass, Texas.

He had previously hosted a Twitter space to help launch Florida Governor Ron DeSantis's presidential campaign. He also suggested in a Twitter poll that Ukraine should give Crimea to Russia as part of a peace plan.

Mr Musk last week met Israeli Prime Minister Benjamin Netanyahu, who urged the billionaire to protect free speech and fight hate speech on X.

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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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Updated: September 29, 2023, 2:55 PM
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