Prosecutors “preparing charges” against Michael Cohen

Michael Cohen, president Donald Trump’s former personal lawyer, could be charged before the end of the month with bank fraud in his dealings with the taxi industry and with committing other financial crimes, two people familiar with the federal probe said Monday.

The people confirmed reports that federal prosecutors in Manhattan were considering charging Mr Cohen after months of speculation over a case that has been a distraction for the White House with the midterm elections approaching.

The people, who weren’t authorised to discuss the case and spoke on Monday on condition of anonymity, refused to answer questions about speculation that Mr Cohen still might strike a plea deal with prosecutors requiring his cooperation.

Unless there is a quick resolution to the case, it’s believed that prosecutors would put off a decision on how to go forward with the case until after the election in compliance with an informal Justice Department policy of avoiding bringing prosecutions that could be seen as political and influence voters.

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Tape of Trump discussing hush money for alleged affair released

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Both the US attorney’s office and an attorney for Mr Cohen, Lanny Davis, declined to comment on Monday. There was no immediate response to a message seeking comment from Sterling National Bank, one of the institutions that loaned Mr Cohen money.

The New York Times reported on Sunday, based on anonymous sources, that prosecutors have been focusing on more than $20 million in loans obtained by taxi businesses that Mr Cohen and his family own.

Mr Cohen had gained notoriety as Mr Trump’s loyal ‘fixer’ before FBI agents raided his office and a hotel where he was staying while renovations were being done on his apartment in a Trump-developed building.

Prosecutors were initially silent about why Mr Cohen was under investigation. Some details became public after lawyers for Mr Cohen and Mr Trump asked a judge to temporarily prevent investigators from viewing some of the seized material, on the grounds that it was protected by attorney-client privilege.

The search of Mr Cohen’s files sought bank records, communications with the Trump campaign and information on hush money payments made in 2016 to two women: former Playboy model Karen McDougal, who received $150,000, and the porn actress Stormy Daniels, who got $130,000.

At the time, Mr Trump branded the raid “a witch hunt,” an assault on attorney-client privilege and a politically motivated attack by enemies in the FBI.

But the president’s initial support for Mr Cohen, though, degenerated over the summer into a public feud, prompting the speculation that, in order to save himself, Mr Cohen might be willing to tell prosecutors some of the secrets he’d help Trump keep.

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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