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Far-right Israeli Finance Minister Bezalel Smotrich once described Hamas as an “asset” for Israel, in a tweet that was unearthed on Tuesday.
Mr Smotrich, long one of the main players in Israel’s growing far-right, said in the same post on Twitter from 2015 that the Palestinian Authority was a “burden”.
The discovery adds to swirling allegations that Israeli policymakers have over the years been taking decisions that empower Hamas in a bid to weaken the rival PA, which has long been the international community’s preferred governing body in the Occupied Palestinian Territories.
The PA is supposed to be interim governing body for Palestinians until the creation of an independent Palestinian state.
It lost control of the Gaza Strip in 2006, after Hamas won a shock electoral victory in the enclave. Clashes broke out after the election between Hamas and Fatah, the main faction in the PA, which resulted in Hamas governing Gaza and the PA governing the occupied West Bank.
Despite Hamas’s virulently anti-Israel and Islamist ideology, Israel has been accused of allowing the group to flourish at the expense of the PA in order to decrease the likelihood of the Palestinians ever having an independent state.
EU Foreign Minister Josep Borrell said on Friday that Israel financed the creation of Hamas, despite strong denials from Israeli Prime Minister Benjamin Netanyahu.
“Hamas was financed by the government of Israel in an attempt to weaken the Palestinian Authority led by Fatah," Mr Borrell said in a speech.
“Mr Borrell is wrong. Far from seeking to strengthen Hamas, as the EU foreign policy chief alleged, Prime Minister Benjamin Netanyahu hit Hamas hard in three large-scale military operations; in 2012, 2014, and 2021,” said Ophir Falk, an adviser to the Israeli Prime Minister, in a statement quoted by Politico.
Israeli leaders have repeatedly vowed to destroy Hamas in the ongoing Gaza war, which began when the group led an attack on southern Israel on October 7 that killed about 1,200 people. About 240 others were kidnapped and taken to Gaza.
More than 25,490 Palestinians have since been killed in the war in Gaza.
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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
The National in Davos
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AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
