Former Israeli foreign minister Tzipi Livni. AFP
Former Israeli foreign minister Tzipi Livni. AFP
Former Israeli foreign minister Tzipi Livni. AFP
Former Israeli foreign minister Tzipi Livni. AFP

Israelis rally European support against Benjamin Netanyahu’s judicial reforms


Sunniva Rose
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Former Israeli officials rallied European support in Brussels against Israeli Prime Minister Benjamin Netanyahu's planned judicial reforms on Monday shortly after he announced a delay.

The call came amid nationwide protests, a national strike and international condemnation.

“What you see now in Israel, these are no judicial reforms,” said Israeli politician and former minister Tzipi Livni, referring to the government’s plans to limit the Supreme Court’s powers and give politicians greater control over judicial appointments.

“This is turning the Jewishness of the state of Israel into a religious aspect instead of a national one, and trying to minimise the nature of Israel as a democracy.”

She was speaking in a recorded video message at a conference on Israel organised at the European Parliament.

Former Israeli ambassador to France Elie Barnavi described Mr Netanyahu's government as a "bunch of barbarians who hate democracy".

But he also said he was "proud" of his fellow citizens for organising massive protests in the past weeks.

"I didn't expect this, and Netanyahu didn't either," Mr Barnavi said.

Speaking to The National shortly before the conference at a rally outside EU institutions, he called on the EU to “draw red lines" when it comes to Israel, a historical ally.

“It’s not business as usual any more,” he said.

“Words are no longer enough, we want action. It means economic sanctions against the colonies, and ideally, a ban against settlers on entering the EU."

Mr Barnavi also said he feared that Israel's enemies, including Iran and Lebanese militia Hezbollah, would seize on the opportunity to further destabilise the country.

It’s extraordinarily difficult to get the European Parliament to react to what is happening in Israel today
MEP Bernard Guetta

"It's a blessed opportunity for them," he said.

Emily Bowman, policy officer at the European Union for Jewish students, an organisation which supports Jewish students in Europe, said that she did not usually comment on internal Israeli policies but that the unprecedented nature of Mr Netanyahu's judicial reforms compelled her to.

"This is a threat to democracy and democratic values," Mr Bowman told The National.

She said that as a European Jew, she cared about the state of Israeli democracy.

“Israel’s very dear to every Jewish person’s heart," Ms Bowman said. "We are all Zionists. We are all lovers of Israel here. That’s the point. That’s why we are all here."

The image of Israel as a thriving democracy must be maintained in order for the country to keep maintain its strong links with other democracies, warned Maurice Levy, chairman of the supervisory board of Publicis, one of the world’s largest communication groups, based in Paris.

In a video message at the European Parliament conference, Mr Levy said he hoped the Israeli government would be able to recognise it had “gone too far.”

“It is essential not only for the image of Israel but also for its place in the world arena,” he said.

Guilt over the Holocaust, which saw the near-extinction of Europe’s Jewish population during the Second World War, has paralysed the public debate within the EU on Israel to this day, according to MEP Bernard Guetta.

Mr Guetta, from the centre group Renew, organised Monday’s conference on Israel with JCall, a non-profit lobby group at the European Parliament on Middle Eastern affairs.

“It’s extraordinarily difficult to get the European Parliament to react to what is happening in Israel today,” he said.

Mr Guetta was referring to a debate in the European Parliament on Israel held two weeks ago during which the EU’s top diplomat, Josep Borrell, said he had received an angry phone call from Israeli Foreign Affairs Minister Elie Cohen accusing the bloc of meddling in Israeli affairs.

Mr Guetta said that, at the time, his calls for political and economic reprisals by the EU against Israel for undermining democracy created a “terrible unease” among his fellow MEPs at the plenary session.

“The Shoah is European, and the guilt is huge,” he said.

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

Updated: March 28, 2023, 6:52 AM