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Israeli leaders are reacting angrily to reports that an Israeli army battalion could be sanctioned under US human rights legislation, after US Secretary of State Antony Blinken said a decision on the move would be made “soon”.
The unit in question is the Netzah Yehuda battalion, established in 1999 to accommodate ultra Orthodox Jews – many of whom resist Israel’s compulsory military service.
Critics of US policy regarding its military support to Israel – normally almost $4 billion per year and now boosted by $26 billion this year – say sanctions on the unit of 1,000 men would mostly be symbolic.
Who are the Netzah Yehuda battalion?
The unit is well-known to rights groups, and was identified by the US State Department – which evaluates abuses by military units of allied countries – as having allegedly murdered civilians.
The unit made headlines in 2022 when its members were accused of killing a 78-year-old dual US-Palestinian citizen, but rights organisations have flagged alleged abuses by the soldiers long before then.
Omar Assad was found dead on an abandoned building site having been detained by the unit. A Palestinian autopsy later found he had suffered a stress-induced heart attack, after being handcuffed, gagged, threatened and manhandled by the troops.
Detractors of the unit point to its composition, with many recruits belonging to the so-called Hilltop Youth, an extremist settler organisation with a history of attacking Palestinian shepherds and establishing illegal settlements.
Attempting to placate the US, Israel withdrew Netzah Yehuda from the West Bank in 2022 and moved it to the Golan Heights.
Benny Gantz, a minister in the Israeli war cabinet, spoke to Mr Blinken on Sunday and requested that he “reconsider the prospective decision”.
The Israeli military said the Netzah Yehuda battalion is an active combat unit that operates according to the principles of international law. The US State Department clearly disputes this – at least for now – and could use existing legislation to halt support for the battalion.
What is the Leahy Amendment and will it be used against Israel?
The possible sanctioning of the unit is in line with US legislation introduced in 1997, known as the Leahy Law, named after human rights campaigner and Senator Patrick Leahy.
The law was enacted amid US military support for Columbia in its war against Marxist rebel group FARC, after several Colombian army and police units were accused by rights groups of severe human rights violations.
The US did not want to restrict arms supplies to its Columbian ally wholesale – as it did briefly to allies Pakistan and El Salvador in the 1960s and 1980s respectively – so the law emerged as a compromise to halt support to individual units. Since its passing, it’s been applied to security forces in Azerbaijan, Kyrgyzstan and Mexico, but not Israel.
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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Who are the Soroptimists?
The first Soroptimists club was founded in Oakland, California in 1921. The name comes from the Latin word soror which means sister, combined with optima, meaning the best.
The organisation said its name is best interpreted as ‘the best for women’.
Since then the group has grown exponentially around the world and is officially affiliated with the United Nations. The organisation also counts Queen Mathilde of Belgium among its ranks.
