Israeli Prime Minister Benjamin Netanyahu has rejected a compromise proposal on judicial reforms suggested by Israeli President Isaac Herzog.
Mr Herzog has repeatedly warned that the government’s proposals to sweep away an independent committee that selects the country’s most powerful judges will create “a powder keg", in Israel.
Earlier this month, he said he was confident a deal could be reached on new reforms.
On Wednesday, he said compromise was necessary “to avoid civil war".
Mr Netanyahu’s plan to overhaul the judiciary has sparked what some say are the largest protests in Israel’s history, as well as letters of protest from serving members of the military.
Mr Netanyahu has pushed for stronger control of how judges are selected, leading critics to accuse him of trying to stage a power-grab.
Last month, US President Joe Biden issued a veiled warning to Mr Netanyahu, praising Israeli democracy but saying that the judiciary must remain independent.
“Building consensus for fundamental changes is really important to ensure that the people buy into them so they can be sustained,” Mr Biden said.
"Key sections of the outline he presented only perpetuate the existing situation and do not bring the required balance to the Israeli authorities," Mr Netanyahu wrote on Twitter. "This is the unfortunate truth."
The drive by Mr Netanyahu's hard-right government to enact sweeping changes to Israel's courts has sparked domestic uproar and alarm among the country's Western allies. If the initial proposal passed, it would mean greater government sway in selecting judges and limit the power of the Supreme Court to strike down legislation.
One major point of contention in the planned overhaul is an amendment to the way in which judges are selected.
Justice Minister Yariv Levin has said the coalition's proposed measures would change the way judges are appointed by giving the Knesset more oversight and the government more power on the committee which selects them.
Mr Herzog's plan would see the selection committee include three ministers, the president of the high court, two judges and two civil servants who will be agreed upon by both the President of the supreme court and the justice minister.
The President warned on Wednesday that Israel was at a turning point and stressed he had been involved in mediation efforts and speaking with "thousands of people" for weeks.
"Most Israelis want a plan that will bring both justice and peace," he said.
The government's secretary Yossi Fuchs confirmed on Twitter that the coalition did not support the President's plan.
"The President's plan is one-sided of the President and has not been agreed upon by any member of the coalition," Mr Fuchs said.
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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
In-demand jobs and monthly salaries
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- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
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- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
The 12 breakaway clubs
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
UAE squad
Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.
