An installation of a crushed Israeli Air Force fighter jet is displayed during a protest against the government's judicial reform bill. AFP
An installation of a crushed Israeli Air Force fighter jet is displayed during a protest against the government's judicial reform bill. AFP
An installation of a crushed Israeli Air Force fighter jet is displayed during a protest against the government's judicial reform bill. AFP
An installation of a crushed Israeli Air Force fighter jet is displayed during a protest against the government's judicial reform bill. AFP

Israelis pessimistic judicial negotiations will end crisis


Thomas Helm
  • English
  • Arabic

Members of Israel’s anti-government protest movement have little faith the political dialogue over Prime Minister Benjamin Netanyahu’s contentious legal reforms will succeed and see an imminent return to mass demonstrations, analysts say.

In a desperate bid to stave off “civil war,” President Isaac Herzog is convening meetings between the government and opposition to try to find a compromise on the legal overhaul, which opponents say threaten Israeli democracy.

But Century Foundation analyst Dahlia Scheindlin told The National that “there are very high expectations of a very spectacular failure of these negotiations,” and that there is “less than zero trust between both sides”.

“Protesters feel jittery,” she said of the Israelis she had spoken to. “They are certain that the government is not negotiating in good faith … The overall problem of the overhaul package has been kicked down the line, probably very briefly.”

On Monday, Mr Netanyahu was forced to pause the reforms, which were on the brink of being approved, after around 700,000 Israelis took to the streets and the country's main union launched a general strike.

  • Israeli police disperse demonstrators blocking a road in Tel Aviv during a protest against plans by the government to overhaul the judicial system. AP
    Israeli police disperse demonstrators blocking a road in Tel Aviv during a protest against plans by the government to overhaul the judicial system. AP
  • Police arrest a protester in Tel Aviv. EPA
    Police arrest a protester in Tel Aviv. EPA
  • Demonstrators set up a bonfire on a road. AP
    Demonstrators set up a bonfire on a road. AP
  • Israeli security forces use a water cannon to disperse protesters. AFP
    Israeli security forces use a water cannon to disperse protesters. AFP
  • Thousands of protesters block the Ayalon main road. EPA
    Thousands of protesters block the Ayalon main road. EPA
  • The Tel Aviv protest swelled on Saturday to about 200,000 demonstrators, according to Israeli media estimates. AFP
    The Tel Aviv protest swelled on Saturday to about 200,000 demonstrators, according to Israeli media estimates. AFP
  • A roadblock placed by protesters on the Ayalon main road. EPA
    A roadblock placed by protesters on the Ayalon main road. EPA
  • Demonstrations erupted in January after the coalition government announced its package of changes. AFP
    Demonstrations erupted in January after the coalition government announced its package of changes. AFP
  • Israeli protesters dislodge a fence. AFP
    Israeli protesters dislodge a fence. AFP
  • Police use a water cannon to disperse protesters. AP
    Police use a water cannon to disperse protesters. AP
  • An aerial view of the protest. Reuters
    An aerial view of the protest. Reuters
  • Plans to hand more control to politicians and diminish the role of the court have been questioned by Israel’s allies including the US. AFP
    Plans to hand more control to politicians and diminish the role of the court have been questioned by Israel’s allies including the US. AFP
  • Protesters with placards of Prime Minister Netanyahu saying 'We will not forget, we will not forgive'. EPA
    Protesters with placards of Prime Minister Netanyahu saying 'We will not forget, we will not forgive'. EPA

The government said it would revisit the plans when parliament returned for its summer session at the end of April, and that it would use the interim to find a compromise.

Joshua Hantman told The National that he is “not confident this period of negotiations will go anywhere,” and that the protests will likely continue “albeit with less energy”.

“If the talks fail and the government goes back to its extremist position, people will be back on the streets again,” the political consultant at the Number 10 Strategies communications and polling firm added.

He said the strike “scared the hell out of a lot of people,” adding that such an event “has not happened since the time of the British Mandate”.

Monday’s reversal by the government poses a particular problem for the prime minister.

Abraham Diskin, a research fellow at the right-wing think tank whose ideology was the basis of the legal reforms, told Bloomberg that “given what happened lately, politically and personally, there’s no question that [Mr Netanyahu] lost confidence”.

Polls released by separate Israeli television channels the same day the overhaul was paused showed plummeting ratings for the prime minister.

Mr Hantman said they were “particularly shocking,” because for the “past five election cycles we’ve seen almost a cult of personality around the prime minister.”

“That seems to be breaking now,” he said.

Prime Minister Benjamin Netanyahu came under rare US criticism on Wednesday over his plans to radically change Israel's judicial system. AP
Prime Minister Benjamin Netanyahu came under rare US criticism on Wednesday over his plans to radically change Israel's judicial system. AP

A further "lack of trust between the scattered groups that make up the protesters,” will also make finding a compromise on the reforms harder, says Ms Scheindlin.

“It is important to remember that these demonstrations are really not about the politics, and therefore opposition leaders are not seen as their spokespeople and representatives,” she added

For now fundamental questions remain, and there is little hope that Mr Herzog’s efforts can find answers.

Most people recognise that some type of reform is needed,” says Mr Hantman. “But this wasn’t a reform, it was a revolution.”

Russia's Muslim Heartlands

Dominic Rubin, Oxford

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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Most memorable achievement: Leading my first city-wide charity campaign in Toronto holds a special place in my heart. It was for Amnesty International’s Stop Violence Against Women program and showed me the power of how communities can come together in the smallest ways to have such wide impact.

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Favourite place to travel to: Anywhere with natural beauty, wildlife and awe-inspiring sunsets.

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Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Charlotte Gainsbourg

Rest

(Because Music)

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Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
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Updated: March 29, 2023, 10:02 PM