Joe Biden and Israeli Prime Minister Benjamin Netanyahu in 2016. AP
Joe Biden and Israeli Prime Minister Benjamin Netanyahu in 2016. AP
Joe Biden and Israeli Prime Minister Benjamin Netanyahu in 2016. AP
Joe Biden and Israeli Prime Minister Benjamin Netanyahu in 2016. AP

US President Joe Biden backs compromise on planned Israeli judicial reform


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US President Joe Biden has expressed his concerns about Israel's planned judicial overhaul and appealed for compromise after Israelis protested against the proposed reforms.

Mr Biden told Israeli Prime Minister Benjamin Netanyahu over the phone that he believed “that democratic societies are strengthened by genuine checks and balances, and that fundamental changes should be pursued with the broadest possible base of popular support”, the White House said.

Mr Netanyahu assured Mr Biden that Israel's democracy was healthy, his office said.

Mr Netanyahu, who leads one of the most right-wing coalitions in Israel's history, has pursued changes to the judiciary that would give his government greater sway in selecting judges and limit the Supreme Court's ability to strike down legislation.

The plan has led to weeks of demonstrations. On Sunday, hundreds of Israeli reservists in Israel's elite military and intelligence units said they would join the protests.

Mr Biden “underscored his belief that democratic values have always been, and must remain, a hallmark of the US-Israel relationship”, the White House said.

  • Israelis demonstrate during 'Day of Resistance' against the government's judicial overhaul, outside the US consulate in Tel Aviv. Reuters
    Israelis demonstrate during 'Day of Resistance' against the government's judicial overhaul, outside the US consulate in Tel Aviv. Reuters
  • Israeli naval reservists and volunteers in Haifa use flares to demonstrate during the Day of Resistance. Reuters
    Israeli naval reservists and volunteers in Haifa use flares to demonstrate during the Day of Resistance. Reuters
  • A demonstrator stands with an Israeli flag on an overpass above others march in Tel Aviv. AFP
    A demonstrator stands with an Israeli flag on an overpass above others march in Tel Aviv. AFP
  • Israelis demonstrate in Bnei Brak. Reuters
    Israelis demonstrate in Bnei Brak. Reuters
  • Demonstrators in Tel Aviv. AFP
    Demonstrators in Tel Aviv. AFP
  • A woman rides with a cart-cycle with children in Tel Aviv. AFP
    A woman rides with a cart-cycle with children in Tel Aviv. AFP
  • Prime Minister Benjamin Netanyahu's nationalist coalition government is pressing on with its judicial overhaul. Reuters
    Prime Minister Benjamin Netanyahu's nationalist coalition government is pressing on with its judicial overhaul. Reuters
  • Israelis demonstrating outside the US Consulate in Tel Aviv. Reuters
    Israelis demonstrating outside the US Consulate in Tel Aviv. Reuters

He spoke of the need for broad support before making fundamental changes.

“The president offered support for efforts under way to forge a compromise on proposed judicial reforms consistent with those core principles,” the White House said.

The two leaders discussed tension and violence in the occupied West Bank, with Mr Biden citing the need for all sides “to take urgent, collaborative steps to enhance security co-ordination, condemn all acts of terrorism and maintain the viability of a two-state solution”.

Mr Biden also welcomed a meeting on Sunday between senior political and security officials from Israel, the Palestinian Authority, Egypt, Jordan and the US.

The meeting, held in the Egyptian resort city of Sharm El Sheikh, was convened to find a way to reduce tension.

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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

'My Son'

Director: Christian Carion

Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis

Rating: 2/5

The biog

Born November 11, 1948
Education: BA, English Language and Literature, Cairo University
Family: Four brothers, seven sisters, two daughters, 42 and 39, two sons, 43 and 35, and 15 grandchildren
Hobbies: Reading and traveling

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MATCH INFO

Uefa Champions League, last-16, second leg (first-leg scores in brackets):

PSG (2) v Manchester United (0)

Midnight (Thursday), BeIN Sports

Updated: March 23, 2023, 9:55 PM