A ruling by a local Israeli court in favour of a Jewish man who prayed at Al Aqsa Mosque compound in Jerusalem has angered Muslim authorities.
On Thursday, they called the ruling a breach of the fragile status quo governing the flashpoint holy site.
Al Aqsa Mosque compound is the third holiest site in Islam and a holy site for Jews.
It is an emotional centre of the Israeli-Palestinian conflict, and tension there helped to ignite the 11-day Gaza war in May. Under informal understandings, Jews are not allowed to pray there.
The ruling by a Jerusalem magistrate court concerned a Jewish man who had been barred from the site for 15 days after Israeli police caught him praying there.
The court lifted the ban several days early, saying: “This activity by itself is not enough to violate the police instructions.”
Magistrate courts are the lowest level of the Israeli judiciary. Under a longstanding but informal arrangement known as the status quo, Jews are allowed to visit the site but not pray there.
The agreement has broken down in recent years as large groups of Jews, including hard-line religious nationalists, have regularly visited and prayed at the site.
The Israeli government says it is committed to maintaining the status quo.
The Palestinians and neighbouring Jordan, which serves as the custodian of the holy site, fear that Israel plans to eventually take over the compound or partition it, as it did with a holy site in Hebron, in the Israeli-occupied West Bank.
The Islamic endowment that maintains Al Aqsa called the ruling a “flagrant violation” of the compound’s sanctity and a “clear provocation” for Muslims worldwide.
Friday prayers at the mosque are regularly attended by tens of thousands of Palestinians, and are sometimes followed by protests and clashes with Israeli police.
A provocative visit by a right-wing Israeli politician in 2000 helped to ignite the Second Intifada, or uprising.
Israel captured East Jerusalem – including the Old City and its holy sites sacred to Jews, Christians and Muslims – in the 1967 war and annexed it in a move not recognised by most of the international community.
The Palestinians want East Jerusalem to be the capital of their future state. The city’s status has been among the most divisive issues in decades of failed peace efforts.
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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
