During the 2019 UK election, British Prime Minister Boris Johnson pledged to voters that he would “get Brexit done”. With Thursday’s trade deal between the UK and the European Union, Brexit, in its most immediate sense, does indeed appear to be concluded.
This agreement is not, as many leave supporters feared, “Brexit in name only”. Although few have studied all 2,000 pages of the deal, we know Britain will leave the EU’s customs union and single market, both cornerstone features of EU membership.
The very existence of the deal is an achievement. Unpicking the complex minutiae of a new relationship was deeply frustrating for both sides. Doing this in just nine months is unprecedented. Normally trade agreements of this magnitude take years. And on top of the many technical details, both parties also had to navigate the complex symbolism at the heart of the UK desire to leave.
One such example, which nearly resulted in no deal, was the right of UK fishermen to have unfettered access to British territorial waters. This was previously curtailed by EU fishing quotas, which meant that the UK could land just under half the fish in its waters. This situation was long touted by Brexiteers as an example of EU rules imposing on British sovereignty.
Many of those who wanted to remain in Europe were baffled that this largely emotional issue was becoming a sticking point with the potential to scupper an agreement. They cited facts such as the fishing industry contributing around 0.1 per cent to the UK economy. Britain’s financial services sector, which will most likely be disrupted to some degree by Brexit, makes up a much larger 7 per cent. And yet, in the final days of negotiations, a great deal more was said about the economically less valuable fishing industry.
The European Union's chief Brexit negotiator Michel Barnier holds the 2,000-page Brexit trade deal which was reached just in time for Christmas .Reuters
Across the world, the past four years have demonstrated how much easier it is to divide people than unite them
Mr Johnson will truly conclude Brexit only when such deep symbolic splits in Britain are patched over. Getting Brexit done worked as a mantra because many voters were eager to move on from the drama of Britain’s 2016 EU referendum result, and heal the country’s divisions. Four years on, this still feels a long way off. Success in this regard could define his time in office, perhaps even more so than the huge and newer challenges he faces, such as the UK’s post-Covid-19 recovery.
Brexit is also unlikely to be done anytime soon given the global wave of anti-establishment confidence it is widely perceived to have bolstered. Its success or failure could well have an impact on the longevity of this wider trend.
Across the globe, the past four years have demonstrated how much easier it is to divide people than unite them. A disunited UK benefits none of its allies, in Europe and further afield. If Mr Johnson succeeds in the Herculean task of bringing together a fractured population, while facing unprecedented economic challenges caused by the pandemic, he will go down as one of the great prime ministers of British history. If he fails to do so – bearing in mind that he was one of the primary advocates of Brexit – he risks being labelled by some as the most damaging leader in modern British history.
Key facilities
Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills
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
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book:I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
Our Time Has Come
Alyssa Ayres, Oxford University Press
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
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
