Former Israel Defence Forces Chief of Staff Benny Gantz (R) has asked for a two week extension as he attempts to form a government. EPA/ABIR SULTAN
Former Israel Defence Forces Chief of Staff Benny Gantz (R) has asked for a two week extension as he attempts to form a government. EPA/ABIR SULTAN
Former Israel Defence Forces Chief of Staff Benny Gantz (R) has asked for a two week extension as he attempts to form a government. EPA/ABIR SULTAN
Former Israel Defence Forces Chief of Staff Benny Gantz (R) has asked for a two week extension as he attempts to form a government. EPA/ABIR SULTAN

Netanyahu rival seeks extension in Israel coalition talks


Nicky Harley
  • English
  • Arabic

Benny Gantz, leader of Israel’s Blue and White Party, on Saturday asked the country’s president for a two-week extension as he tries to form a coalition government with Prime Minister Benjamin Netanyahu.

Mr Gantz, Mr Netanyahu’s chief rival in three elections over the past year, was given the task by Israel’s president last month of forming a new government after winning the backing of a narrow majority of members of the newly elected parliament.

But in an abrupt about-face, Mr Gantz later said he would seek to form an “emergency” government with Mr Netanyahu’s Likud party to confront a growing coronavirus crisis.

His decision caused his Blue and White alliance to disintegrate, leaving him at the helm of a diminished version of the party.

The emergency government is expected to leave Mr Netanyahu in the prime minister’s post for a year and a half, before the job rotates to Mr Gantz.

After initial signs of progress, talks between Mr Gantz and Mr Netanyahu hit a snag last week.

Mr Gantz faces a Monday deadline for reaching a deal. He announced late Saturday that he would ask the country’s figurehead president, Reuven Rivlin, for a two-week extension.

“I believe that we are close to signing an agreement, and that with additional time an agreement can be finalized,” he said.

Earlier, Mr Netanyahu called for an immediate resumption of talks in an atmosphere of “good will”.

A failure to reach a deal could plunge the country into a fourth consecutive election in just over a year.

Mr Rivlin did not immediately respond to Mr Gantz’s request.

MATCH INFO

Euro 2020 qualifier

Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)

TV: Match is shown on BeIN Sports

TOURNAMENT INFO

Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia

UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri

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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