In presenting their evidence, the informant must clearly identify themselves, and should any legal proceedings commence, the informant will remain unnamed. Getty Images
In presenting their evidence, the informant must clearly identify themselves, and should any legal proceedings commence, the informant will remain unnamed. Getty Images
In presenting their evidence, the informant must clearly identify themselves, and should any legal proceedings commence, the informant will remain unnamed. Getty Images
In presenting their evidence, the informant must clearly identify themselves, and should any legal proceedings commence, the informant will remain unnamed. Getty Images


Whistleblowers must report tax fraud judiciously but also be protected


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June 12, 2025

You cannot get into business without accepting that you have entered a competitive space. Therefore, it is reasonable to expect that all players operate within the law.

Legally mandated periodic regulatory reporting and the knowledge that an external audit by an empowered body can occur at any time should be enough to ensure that no one cheats. Unfortunately, cheating happens. Even the clearly communicated punishments for doing so never seem to be sufficient to deter bad behaviour.

Legally, you must fail two tests. They are, and to reinforce how dim a view is taken of this, I am using the legal Latin terms, mens rea and actus reus (meaning: guilty mind and guilty act). You need to think about committing an offence and then act on that thought.

So far, we are talking about malfeasance being uncovered by a non-trading external body. Today, in the light of a recently issued Federal Tax Authority (FTA) guide, I wish to address the mechanism in place for all other actors that might likewise reveal potential illegal activity. I say potential because tax law is very complex in parts, and it is not impossible that someone might misunderstand a situation or treatment they have witnessed, and then innocently report it.

Issued in December 2024, a whistleblower programme for tax violations and evasion represents the first detailed approach to the issue.

I addressed this topic in a more general way in an article published by The National on April 29, 2017, as VAT was being launched. There was no formal programme then to protect whistleblowers but their impact could be imagined.

Particularly worrying was the potential for aggrieved personnel who were returning to their home countries unleashing a litany of allegations to the relevant authorities. Trying to sift through that reported in anger would be a challenge.

Also, now abroad, a person might assume that there would be no consequences to their actions. Understand that this new regime does not just relate to people, but to any juridical entity.

I might have used a different word than informant, which represents the reporting party. While the word is absolutely accurate, language changes over time based on its usage and television has not been kind to the general perception of what an informant is and what often happens to them.

The guidance lists two categories of information they are interested in.

Firstly, there is suspected tax evasion, which includes anything from registering with false information to submitting returns that are manipulated to reduce or mitigate any payable tax.

Secondly, there is non-compliance – from falsifying invoices, be it with incorrect amounts or use of a different currency, to trading under the counter for cash and keeping such transactions off the business’s financial accounts.

This is clearly identifiable fraudulent activity. An approach may be rebuffed if it is considered insufficient to prosecute. However, this does not prevent further approaches if additional and more substantial evidence is collected and presented.

In presenting their evidence, the informant must clearly identify themselves. This will naturally remain confidential. Importantly, should any legal proceedings commence, the informant will remain unnamed.

Two interesting things follow. One is whether the prosecuted party is made aware that their actions were uncovered and reported by a person or a juridical entity. Clarity on this element would be useful.

Second is the matter of a monetary reward. A non-disclosure agreement is signed as part of this process.

Any reward would be paid subsequent to a successful prosecution and collection of monies due. There are specifics worth reviewing, although it might be hoped that any reports made would be from a desire to see fairness than the prospect of a monetary windfall.

The informant’s involvement ends as action is being taken. No updates are provided on the nature of the continuing case, which would seem to be a sensible protocol.

For someone to step forward and provide information about the actions of another creates on them a burden, which must be co-shouldered. Hence, the receiving party provides for protections where it’s accurate and in good faith.

The submission is made using the FTA portal and the process is well documented.

I finish by highlighting this because the FTA document is, and I quote, “not a legally binding document and is not intended to provide comprehensive details associated with taxes and is not intended for legal reference”.

Either protection exists or it does not. I am not a solicitor, but for someone to agree to fall backwards, they must be certain that they are falling into the arms of safety.

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

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How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
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TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

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Citizenship-by-investment programmes

United Kingdom

The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).

All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.

The Caribbean

Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport. 

Portugal

The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.

“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.

Greece

The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.

Spain

The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.

Cyprus

Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.

Malta

The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.

The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.

Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.

Egypt 

A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.

Source: Citizenship Invest and Aqua Properties

UK-EU trade at a glance

EU fishing vessels guaranteed access to UK waters for 12 years

Co-operation on security initiatives and procurement of defence products

Youth experience scheme to work, study or volunteer in UK and EU countries

Smoother border management with use of e-gates

Cutting red tape on import and export of food

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Updated: June 12, 2025, 8:05 AM`