Google workers want plug pulled on plan for China search

Google workers on Tuesday posted an open letter calling on the internet giant to abort plans for “a censored search” service in China or risk setting a dangerous precedent.

Google chief executive Sundar Pichai last month acknowledged publicly for the first time that the company is considering a search engine for China, saying it could offer “better information” to people than rival services.

Unconfirmed reports of Project Dragonfly had sparked protest from Google’s workforce as well as groups including Human Rights Watch, Reporters Without Borders and Amnesty International, which is encouraging people to sign an online petition calling for its cancellation.

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Google employees demand more oversight of China search engine plan

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“Our opposition to Dragonfly is not about China: we object to technologies that aid the powerful in oppressing the vulnerable, wherever they may be,” read the workers’ letter, which bore the names of 90 Google employees and called for more of the firms’ more than 94,000 employees to sign.

“Dragonfly in China would establish a dangerous precedent at a volatile political moment, one that would make it harder for Google to deny other countries similar concessions.”

A search application designed to filter out censored content from results could damage all internet users’ trust in Google, Amnesty International said in a post on its website on Tuesday.

“This is a watershed moment for Google,” said Amnesty International researcher on technology and human rights Joe Westby.

“As the world’s number one search engine, it should be fighting for an internet where information is freely accessible to everyone, not backing the Chinese government’s dystopian alternative.”

Speaking at a conference last month, Mr Pichai said Google leaders “feel obliged to think hard” about China despite criticism over the possibility of cooperating with Chinese censorship.

“We are always balancing a set of values,” he said, while adding that “we also follow the rule of law in every country.”

Google shut down its search engine in China in 2010, refusing Beijing’s requirement to censor search results.

Mr Pichai described Project Dragonfly as an effort to learn about what Google could offer if it resumed its search operations in the world’s second largest economy.

“It turns out we would be able to serve well over 99 percent of the (search) queries,” he said onstage in a question-and-answer session.

“And there are many, many areas where we would provide better information than what is available.”

Mr Pichai offered no details on the status of the effort but said he was taking a “long-term view” on China.

“We don’t know whether we would or could do this in China but we felt it was important to explore,” he said.

“I think it’s important for us given how important the market is and how many users there are.”

US internet titans have long struggled with doing business in China, home of a ‘Great Firewall’ that blocks politically sensitive content, such as the 1989 Tiananmen massacre.

Twitter, Facebook, YouTube and The New York Times website are blocked in China, but Microsoft’s Bing search engine continues to operate.

Tales of Yusuf Tadros

Adel Esmat (translated by Mandy McClure)

Hoopoe

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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