French demonstrators and supporters of Palestinians of the BDS movement hold a placard with the word "Boycott" during a demonstration in Paris AP
French demonstrators and supporters of Palestinians of the BDS movement hold a placard with the word "Boycott" during a demonstration in Paris AP
French demonstrators and supporters of Palestinians of the BDS movement hold a placard with the word "Boycott" during a demonstration in Paris AP
French demonstrators and supporters of Palestinians of the BDS movement hold a placard with the word "Boycott" during a demonstration in Paris AP

French conviction of BDS activists violated freedom of expression


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The European Court of Human Rights has ruled that the French conviction of activists who supported the Boycott Divestment and Sanctions movement was a breach of freedom of expression.

In Thursday’s ruling, the human rights court overruled France’s Court of Cassation, finding in favour of the BDS activists promoting the boycott of Israeli products.

The ECHR said the criminalisation of the movement, through some of the toughest legislation in the world, was in breach of freedom of expression and ordered the French government to pay damages to the activists.

In 2015, France’s highest appeals court upheld criminal convictions against 12 BDS activists for inciting discrimination. The activists had handed out flyers at a supermarket telling shoppers that buying Israeli goods meant supporting crimes against Palestinians.

The effect of the ruling meant political statements denouncing Israel could be treated as incitement to hatred. French courts cited legislation that had been introduced to address a rise in racist incidents including anti-Semitism perpetrated by the French far-right in 2003.

THe European Court of Human Rights in Strasbourg, France
THe European Court of Human Rights in Strasbourg, France

The ECHR has ordered France to pay damages to each campaigner of €27,380 (Dh114,000) and said there was little scope in European conventions for restrictions on political speech when it did not cross the line and call for violence, hatred or intolerance.

"It's a victory for freedom of expression and civic action," Bertrand Heilbronn, president of the France Palestine Solidarity Associations, said, and added that his organisation would continue to develop the BDS movement.

The Palestinian-led BDS campaign promotes various forms of boycott against Israel, criticising the country for its contravention of human rights and international law. Israel has frequently and consistently denounced the movement as anti-Semitic.

In April, the UK government lost a legal challenge from the Palestine Solidarity Campaign over 2016 guidance instructing local councils not to use pension policies to support boycotts, sanctions or divestment from foreign countries.

The UK Supreme Court found the guidance, which blocked administrators from making decisions of the kind that would support the BDS movement, unlawful.

Focus has returned to the BDS movement as Israel pushes ahead with its plans to annex swathes of territory in the West Bank, delivering on repeated promises made by the country’s Prime Minister Benjamin Netanyahu, in recent months.

In a visit to Jerusalem, his first trip outside Europe since the start of the coronavirus outbreak, Germany's Foreign Minister, Heiko Maas, warned Israel that its plan to begin annexation would violate international law.

After meeting Mr Netanyahu and his coalition partner, Israeli Defence Minister Benny Gantz, the German foreign minister held discussions with Palestinian Prime Minister Mohammad Shtayyeh and Jordanian Foreign Minister Ayman Safadi.

It remains unclear how Europe or Germany will respond to Israel’s plans, which have the backing of the United States.

Speaking at a Chatham House webinar, Alaa Tartir, a policy adviser at The Palestinian Policy Network, said the prospect of annexation had presented an opportunity to Europe to redefine its policy towards Israel.

“This offers another moment for the international community and particularly Europe to act differently or meaningfully,” he said.

"The questions remain over whether Europe and the international community are ready to seize this moment and engage in different processes to push Israel to take them seriously to take the Europeans in particular seriously."

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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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Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.

“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.

“They were living in perpetual mystery as to how their futures would pan out, and what that would be.

“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.

“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.

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