Israeli Prime Minister Naftali Bennett with Foreign Minister Yair Lapid, left, at a Cabinet meeting in Jerusalem. Reuters
Israeli Prime Minister Naftali Bennett with Foreign Minister Yair Lapid, left, at a Cabinet meeting in Jerusalem. Reuters
Israeli Prime Minister Naftali Bennett with Foreign Minister Yair Lapid, left, at a Cabinet meeting in Jerusalem. Reuters
Israeli Prime Minister Naftali Bennett with Foreign Minister Yair Lapid, left, at a Cabinet meeting in Jerusalem. Reuters

Netanyahu plots comeback as Israel's ruling coalition faces crisis


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  • Arabic

Divisions within Israel's diverse ruling coalition could provide the opportunity for former prime minister Benjamin Netanyahu to stage a comeback.

However, embattled Prime Minister Naftali Bennett could still ride out the political crisis because a key coalition ally is expected to remain in government, analysts said.

The coalition — which includes hard-right, pro-settlement politicians from Mr Bennett's Yamina religious-nationalist party, secular liberals from Foreign Minister Yair Lapid's Yesh Atid party and Israeli Arabs from Mansour Abbas's United Arab List — recently lost a thin majority in parliament.

  • Ra'am, led by Mansour Abbas. AP Photo
    Ra'am, led by Mansour Abbas. AP Photo
  • The new Israeli coalition is made up of: Yesh Atid, led by Yair Lapid. Reuters
    The new Israeli coalition is made up of: Yesh Atid, led by Yair Lapid. Reuters
  • Yamina, led by Naftali Bennett. AFP
    Yamina, led by Naftali Bennett. AFP
  • Israel Beiteinu led by Avigdor Lieberman. Reuters
    Israel Beiteinu led by Avigdor Lieberman. Reuters
  • The Israeli Labour Party, led by Merav Michaeli. AFP
    The Israeli Labour Party, led by Merav Michaeli. AFP
  • Blue and White, led by Benny Gantz. AP Photo
    Blue and White, led by Benny Gantz. AP Photo
  • Meretz, led by Nitzan Horowitz. AFP
    Meretz, led by Nitzan Horowitz. AFP
  • New Hope, led by Gideon Sa'ar. AFP
    New Hope, led by Gideon Sa'ar. AFP

While Mr Bennett appears to be poised to fend off this immediate challenge, his long-term prospects are uncertain at a time when the government is deeply divided over major issues.

Israel is facing a wave of stabbings and shootings by lone-wolf Palestinian attackers, and a confrontation with the US looms over the construction of new settlements in the West Bank.

Acting coalition chairman Boaz Toporovsky said the political alliance was in the midst of a “serious crisis” but expressed optimism that it would survive.

“Everyone understands that we are at a crossroads that can bring about, heaven forbid, elections in Israel,” he told Israeli public broadcaster Kan on Monday.

The government took office last June, ending a prolonged deadlock after the country went through four rounds of inconclusive elections in two years.

Racing to head off what would have been another election, Mr Bennett cobbled together a diverse coalition of eight parties with little in common beyond their shared animosity towards Mr Netanyahu.

The government has managed to pass a budget, curb the spread of the coronavirus pandemic and strengthen relations with both the Biden administration and Israel's Arab allies.

Mr Bennett has also emerged as a surprise mediator in the Russia-Ukraine war, regularly speaking to the leaders of both countries.

Although he has ruled out peace talks with the Palestinians, he has tried to reduce tension by taking steps to improve living conditions in the occupied West Bank and Gaza Strip.

This cautious approach has repeatedly been tested. One member of his party defected when the government took office, accusing Mr Bennett of abandoning their nationalist ideology.

A second Yamina member followed suit last month, leaving the coalition and opposition equally divided in the 120-seat parliament.

Weeks of Israeli-Palestinian violence, much of it stoked by tension and fighting at Jerusalem’s most sensitive holy site, prompted Mansour Abbas, leader of the United Arab List faction in the coalition, to suspend co-operation.

Mr Abbas has not said whether he will resume co-operation or join the opposition in attempts to topple the coalition this week.

Mr Toporovsky said the political alliance was in “a not-so-simple crisis with Ra’am”, the Hebrew acronym for the United Arab List. He said he understood the party's disappointment with the slow pace of bringing about change for Israel's Arab communities.

A public opinion survey in April by the Israel Democracy Institute found that only 30 per cent of respondents believed the government would survive the year, down from 49 per cent in February.

The think tank polled 751 Israeli Jews and Arabs, and reported a margin of error of 3.65 percentage points.

Netanyahu comeback

Mr Netanyahu is considering plans to introduce a motion this week to dissolve parliament and trigger elections.

Such a move is risky as it would require at least one of the remaining members of the coalition to join him. There is no guarantee that will happen.

If Mr Netanyahu fails, he would not be able to introduce a similar motion for the next six months as a corruption trial against him moves ahead.

A pair of no-confidence motions floated by the opposition on Monday quickly failed. That prompted Mr Bennett and his main coalition partner, Mr Lapid, to release a video together on Twitter saying they had defied the sceptics.

“We are going to continue with victories, to sustain an excellent government in the state of Israel for the citizens of Israel,” Mr Bennett said.

Yohanan Plesner, a former politician who is now president of the Israel Democracy Institute, said he expects the coalition to weather the storm, at least in the short run.

He said that even unhappy coalition members would have much to lose if the country were to head back to the ballot box.

Mr Abbas, for instance, is only beginning to see the huge amounts he secured in the budget on behalf of the impoverished Arab communities he represents.

However, any member of the coalition can now put pressure on the government to back pet projects opposed by other partners.

This week, an Israeli planning committee is expected to approve plans to build about 4,000 homes within what Israel calls "settlement blocs" in the occupied West Bank, despite vociferous opposition from the US and most of the international community.

The project is being pushed by members of Mr Bennett's own party, which draws much of its support from the settler community.

“The next few days will allow us to know whether the coalition is in critical but stable condition or critical but unstable condition,” Mr Plesner said.

“The immediate areas to look at are either the Ra'am party, as a whole or parts of it, or elements from within Yamina.”

Directed by Sam Mendes

Starring Dean-Charles Chapman, George MacKay, Daniel Mays

4.5/5

The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

Ukraine%20exports
%3Cp%3EPresident%20Volodymyr%20Zelenskyy%20has%20overseen%20grain%20being%20loaded%20for%20export%20onto%20a%20Turkish%20ship%20following%20a%20deal%20with%20Russia%20brokered%20by%20the%20UN%20and%20Turkey.%3Cbr%3E%22The%20first%20vessel%2C%20the%20first%20ship%20is%20being%20loaded%20since%20the%20beginning%20of%20the%20war.%20This%20is%20a%20Turkish%20vessel%2C%22%20Zelensky%20said%2C%20adding%20exports%20could%20start%20in%20%22the%20coming%20days%22%20under%20the%20plan%20aimed%20at%20getting%20millions%20of%20tonnes%20of%20Ukrainian%20grain%20stranded%20by%20Russia's%20naval%20blockade%20to%20world%20markets.%3Cbr%3E%22Our%20side%20is%20fully%20prepared%2C%22%20he%20said.%20%22We%20sent%20all%20the%20signals%20to%20our%20partners%20--%20the%20UN%20and%20Turkey%2C%20and%20our%20military%20guarantees%20the%20security%20situation.%22%3C%2Fp%3E%0A
It Was Just an Accident

Director: Jafar Panahi

Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr

Rating: 4/5

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

RESULTS

6pm: Al Maktoum Challenge Round-2 – Group 1 (PA) $55,000 (Dirt) 1,900m
Winner: Rajeh, Antonio Fresu (jockey), Musabah Al Muhairi (trainer)

6.35pm: Oud Metha Stakes – Rated Conditions (TB) $60,000 (D) 1,200m
Winner: Get Back Goldie, William Buick, Doug O’Neill

7.10pm: Jumeirah Classic – Listed (TB) $150,000 (Turf) 1,600m
Winner: Sovereign Prince, James Doyle, Charlie Appleby

7.45pm: Firebreak Stakes – Group 3 (TB) $150,000 (D) 1,600m
Winner: Hypothetical, Mickael Barzalona, Salem bin Ghadayer

8.20pm: Al Maktoum Challenge Round-2 – Group 2 (TB) $350,000 (D) 1,900m
Winner: Hot Rod Charlie, William Buick, Doug O’Neill

8.55pm: Al Bastakiya Trial – Conditions (TB) $60,000 (D) 1,900m
Winner: Withering, Adrie de Vries, Fawzi Nass

9.30pm: Balanchine – Group 2 (TB) $180,000 (T) 1,800m
Winner: Creative Flair, William Buick, Charlie Appleby

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EKinetic%207%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Rick%20Parish%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Clean%20cooking%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self-funded%3C%2Fp%3E%0A

Rainbow

Kesha

(Kemosabe)

Charlotte Gainsbourg

Rest

(Because Music)

Asia Cup 2018 Qualifier

Sunday's results:

  • UAE beat Malaysia by eight wickets
  • Nepal beat Singapore by four wickets
  • Oman v Hong Kong, no result

Tuesday fixtures:

  • Malaysia v Singapore
  • UAE v Oman
  • Nepal v Hong Kong
FA CUP FINAL

Manchester City 6
(D Silva 26', Sterling 38', 81', 87', De Bruyne 61', Jesus 68')

Watford 0

Man of the match: Bernardo Silva (Manchester City)

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.5-litre%204-cylinder%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ECVT%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E119bhp%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E145Nm%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh%2C89%2C900%20(%2424%2C230)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
WandaVision

Starring: Elizabeth Olsen, Paul Bettany

Directed by: Matt Shakman

Rating: Four stars

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
Brief scoreline:

Tottenham 1

Son 78'

Manchester City 0

Cricket World Cup League 2

UAE squad

Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind

Fixtures

Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE

Kamindu Mendis bio

Full name: Pasqual Handi Kamindu Dilanka Mendis

Born: September 30, 1998

Age: 20 years and 26 days

Nationality: Sri Lankan

Major teams Sri Lanka's Under 19 team

Batting style: Left-hander

Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)

ARABIAN GULF LEAGUE FIXTURES

Thursday, September 21
Al Dahfra v Sharjah (kick-off 5.35pm)
Al Wasl v Emirates (8.30pm)

Friday, September 22
Dibba v Al Jazira (5.25pm)
Al Nasr v Al Wahda (8.30pm)

Saturday, September 23
Hatta v Al Ain (5.25pm)
Ajman v Shabab Al Ahli (8.30pm)

Updated: May 10, 2022, 7:22 AM