A Palestinian throws back a gear gas canister during clashes with Israeli troops in the West Bank city of Bethlehem on Wednesday. Nasser Shiyoukhi / AP Photo
A Palestinian throws back a gear gas canister during clashes with Israeli troops in the West Bank city of Bethlehem on Wednesday. Nasser Shiyoukhi / AP Photo
A Palestinian throws back a gear gas canister during clashes with Israeli troops in the West Bank city of Bethlehem on Wednesday. Nasser Shiyoukhi / AP Photo
A Palestinian throws back a gear gas canister during clashes with Israeli troops in the West Bank city of Bethlehem on Wednesday. Nasser Shiyoukhi / AP Photo

Israel spins a tale over its occupation


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In Israel’s propaganda campaign directed at the West, the dominant narrative of the Israeli-Palestinian conflict focuses on security. Based on this, many outside the region come to believe that the conflict is fought between two relative equals with security for both populations as its core principle. In truth, the conflict is defined by control more than anything else. Israel has demonstrated time and again that the preservation of its military occupation of the Palestinian West Bank and east Jerusalem drives its policies. Since the occupation is the primary source of conflict, the narrative spun by Israel’s PR machine is false. The current uptick in violence in Jerusalem clearly demonstrates this situation.

The majority of perpetrators of the stabbing attacks, for example, are Palestinians from east Jerusalem or Palestinian towns inside Israel. They are either permanent residents or hold Israeli citizenship. While there are clashes happening across the West Bank and on the border with the Gaza Strip, Israeli society is shaken by Palestinians who are direct subjects of the Israeli state. While Tel Aviv has been quick to blame Palestinian Authority president Mahmoud Abbas for the recent violence, the fact of the matter is that Mr Abbas can do little to stem it. After all, he doesn’t directly represent the Palestinians of Jerusalem. These are the contours of the de facto one-state reality that exists on the ground, which features Israel’s complete control over Palestinian life and which results in random violent attacks on Israeli civilians.

Compounding matters is the fact that the majority of Israelis and Palestinians and their respective leaderships have all but abandoned the two-state solution as envisioned by the Oslo Accords. While few politicians on either side have embraced an equitable one-state solution to the conflict, both sides are waking up to the one-state reality that has been the result of years of mismanagement of the conflict and the drive by Israel to ensure its permanent control over Palestinians and their land.

Genuine security for both sides can only be guaranteed when all people between the Mediterranean Sea and Jordan River enjoy their basic civil and human rights. If this violence is symptomatic of a one-state reality, in which Israel imposes curfews and creates road blocks throughout Jerusalem, we are witnessing the start of a civil war. It also means that the international community must stop ignoring the rights-based narrative that is at the core of the conflict.

Tips for SMEs to cope
  • Adapt your business model. Make changes that are future-proof to the new normal
  • Make sure you have an online presence
  • Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
  • Open communication with customers to see how they are coping and be flexible about extending terms, etc
    Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
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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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