US envoy Amos Hochstein during a visit to Beirut in March. Reuters
US envoy Amos Hochstein during a visit to Beirut in March. Reuters
US envoy Amos Hochstein during a visit to Beirut in March. Reuters
US envoy Amos Hochstein during a visit to Beirut in March. Reuters

US envoy heads to Tel Aviv and Beirut amid escalation on Israel-Lebanon border


Nada Maucourant Atallah
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US envoy Amos Hochstein met Benjamin Netanyahu on Monday during a trip to Israel in the latest diplomatic push to prevent an escalation in fighting between Israel and the Iran-backed Lebanese group Hezbollah from turning into a full-blown war.

He also met with Israeli President Isaac Herzog to discuss "the urgent need to restore security to the northern border and return residents to their homes," according to the President's office.

He will also meet separately with former war cabinet member Benny Gantz and opposition leader Yair Lapid on Monday evening, before flying to Beirut for his fourth visit to Lebanon since the fighting began.

Mr Hochstein's goal is to advance efforts to avoid further escalation along the Blue Line between the countries, according to a White House official. The UN-demarcated boundary separates Lebanon from Israel and the Israeli-occupied Golan Heights.

His trip comes amid escalating violence along the border, which has seen daily exchanges of fire since Hezbollah opened a “pressure front” in support of its ally Hamas, the Iran-backed Palestinian militant group in Gaza, on October 8.

Lebanese civil defence firefighters and residents douse a fire resulting from Israeli military shelling in the village of Shebaa, close to the southern Lebanese border. AFP
Lebanese civil defence firefighters and residents douse a fire resulting from Israeli military shelling in the village of Shebaa, close to the southern Lebanese border. AFP

Hamas has faced a devastating Israeli military offensive in Gaza after launching a deadly attack on southern Israel a day earlier.

Hezbollah last week launched its largest volleys of rockets and drones so far in retaliation for the killing of one of its most prominent field commanders, Sami Abdallah, in an Israeli strike on Tuesday.

A Hezbollah source declined to comment on Mr Hochstein's latest attempt to defuse the conflict.

“We are waiting for the visit, his positions, and his discussions with officials first,” the source told The National.

Hezbollah leader Hassan Nasrallah has maintained that his group will continue its attacks until Israel ends its assault on Gaza.

On Monday, Hezbollah announced the death of one of its fighters, Mohammad Mustafa Ayoub. The total fatalities on the Lebanese side stand at least 473 people, including 92 civilians, according to an AFP tally.

The Israeli military says 18 soldiers and 10 civilians have been killed in northern Israel.

Israel has repeatedly threatened Lebanon with a full-scale war if Hezbollah, a much stronger militia than Hamas, does not withdraw from its positions near the border. It has set a September deadline for the safe return of tens of thousands of people forced to flee their homes in northern Israel because of the fighting.

“Hezbollah's increasing aggression is bringing us to the brink of what could be a wider escalation, one that could have devastating consequences for Lebanon and the entire region,” Israeli military spokesman Admiral Daniel Hagari said on Monday.

Israeli Prime Minister Benjamin Netanyahu said this month that Israel was “prepared for a very intense operation” along the border with Lebanon.

UN officials in Lebanon have warned of the “very real” risk of miscalculation in the cross-border exchanges.

“We continue to engage with the parties and urge all actors to cease their fire and commit to working towards a political and diplomatic solution – which is the only lasting solution,” UN Special Co-ordinator for Lebanon Jeanine Hennis-Plasschaert and Lt Gen Aroldo Lazaro, head of the UN forces deployed in the country, said in a joint-statement on Sunday.

Diplomatic push

Diplomatic efforts led by Mr Hochstein, who mediated a historic agreement between Israel and Lebanon in late 2022 that ended their long-running maritime border dispute, have been fruitless.

He has been pursuing a deal to demarcate the disputed land border between the two countries, as a way of defusing tensions. The first phase entails the cessation of hostilities, allowing evacuees from both sides to return home and the strengthening of the Lebanese armed forces. The second phase would involve an economic package for Lebanon.

The US has no direct contacts with Hezbollah, which it considers a terrorist group. Lebanon's Speaker of Parliament, Nabih Berri, who heads the Amal Movement close to Hezbollah, caretaker Foreign Minister Abdallah Bou Habib and caretaker Prime Minister Najib Mikati have been serving as the US's main interlocutors.

France, a former colonial power that has maintained a strong influence over the small Mediterranean country, is also part of the diplomatic push.

In February, it submitted a proposal involving the withdrawal of certain Hezbollah elements along the border, in exchange for Israel ceasing its air and artillery strikes and, ultimately, halting flights by military aircraft over Lebanese territory.

French President Emmanuel Macron said on Thursday that France, the US and Israel would form a contact group to work on defusing tensions along the border.

“We have agreed on the principle of a trilateral approach to advance on the road map proposed by France. We will do the same with the Lebanese authorities,” Mr Macron said on the sidelines of the G7 summit in Italy.

His proposal was rejected the next day by Israeli Defence Minister Yoav Gallant, who accused Paris of being hostile towards Israel.

“As we fight a just war, defending our people, France has adopted hostile policies against Israel,” Mr Gallant said. “Israel will not be a party to the trilateral framework proposed by France.”

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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

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By committing to at least one of these daily, you can bring more gratitude into your life, says Ong.

  • During your morning skincare routine, name five things you are thankful for about yourself.
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Courtesy: Crystal Intelligence

Updated: June 17, 2024, 3:44 PM