US House votes to impeach Homeland Security Secretary Alejandro Mayorkas

Republicans in the House of Representatives voted late on Tuesday to impeach Homeland Security Secretary Alejandro Mayorkas.

The motion passed with the narrowest possible margin – 214-213 – as House Majority Leader Steve Scalise returned to Washington from cancer treatment to reverse an embarrassing defeat of the charges last week.

There is little chance, however, that the necessary two-thirds majority of the Democratic-led Senate will vote to convict him and remove him from office.

Party leaders rushed to re-do the vote hours before polls closed in a toss-up special election in New York that could give Democrats an extra House seat and scuttle Republicans' campaign to bring charges against a member of President Joe Biden's administration.

Following the vote, the White House hit back, saying “history will not look kindly on House Republicans for their blatant act of unconstitutional partisanship”.

In a statement, Mr Biden called Mr Mayorkas an “honourable public servant” who has become the target of Republicans' “petty political games”.

Republicans are pressing the impeachment charges against Mr Mayorkas as the party ramps up attacks on the Biden administration’s border enforcement record and backlash against surging migration moves to the centre of the presidential campaign.

“Instead of staging political stunts like this, Republicans with genuine concerns about the border should want Congress to deliver more border resources and stronger border security,” Mr Biden said in his statement.

“Sadly, the same Republicans pushing this baseless impeachment are rejecting bipartisan plans Secretary Mayorkas and others in my administration have worked hard on to strengthen border security at this very moment – reversing from years of their own demands to pass stronger border bills.”

Mr Mayorkas, the first Latino and immigrant to head the department, is the second cabinet member in US history – and the first in almost 150 years – to be impeached.

The first vote to impeach Mr Mayorkas failed last week after a deadlock, with three Republicans joining all Democrats to oppose the resolution on constitutional grounds, with the dissenting Republicans arguing he was being impeached over policy differences rather than “the high crimes and misdemeanours” standard set in the US Constitution.

Immigration has risen to near the top of voters’ election-year concerns as illegal border crossings soar while inflation eases, unemployment remains low and consumer confidence strengthens.

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