Category: Israel
Canada: Canada-Israel Income Tax Convention & The Making Of Aliyah From Canada To Israel – Canadian Tax Lawyer Analysis
Clarifications regarding Aliyah for Canadian residents. ... - Continue reading
Tax data sharing sparks arrests among Israelis with unreported foreign bank accounts
The Common Reporting Standard (CRS) continues to unveil more offshore revenue. ... - Continue reading
Tax treaty ratified
‘The new tax treaty between Australia and Israel will ensure the economic, trade and commercial relationship between our two countries is strengthened’. A “HISTORIC” new tax treaty between Australia and Israel has been hailed as “representing an important milestone in removing tax barriers and facilitating trade and investment” between the… – Continue reading
Israel: Implications Of The New Updated Form 1385 – Declaration Of International Transactions Between Related Parties
In early July, the Israeli Tax Authority (ITA) issued an update to Form 1385 - "Declaration of International Transaction.” ... - Continue reading
Israel seeks Swiss help in identifying undeclared accounts
Swiss authorities are considering a request from the Israeli finance ministry for assistance in identifying Israelis with undeclared assets at two Swiss private banks. ... - Continue reading
Ex-soccer player among 9 held on suspicion of laundering millions
Also arrested is a former senior local council figure suspected of advancing interests in return for benefitsFour people were arrested and five detained for questioning in connection with the suspected international laundering of millions of shekels over a long period, police said Sunday. The four include a former senior elected… – Continue reading
Israeli supermodel Bar Refaeli to pay tax evasion fine
In late December, news of Refaeli’s potential indictment came about. Her mother, who was her modeling agent, was also subject to the money-laundering scheme, according to reports. Israeli supermodel Bar Refaeli, who has been investigated by the nation’s Tax Authority since 2015, will have to pay taxes for the roughly… – Continue reading
Israeli bank to pay $195M for US tax-avoidance scheme
Mizrahi-Tefahot Bank and two subsidiaries acknowledge that from 2002 until 2012 they conspired with U.S. clients to avoid taxes on assets and securities by opening and maintaining offshore accounts under false or code names or through foreign entities. One of Israel’s largest banks has agreed to pay $195 million for… – Continue reading
Tax transparency watchdog urges Israel to step up moves against money laundering
After global index puts Israel in top third of most financially secretive countries, NGO calls for more public scrutiny and regulations to stop rich from hiding their assets Israel must immediately move to pass regulations against tax evasion and money laundering if it is to protect its credit rating and… – Continue reading
Crypto in Israel: Deep Likelihood Analysis of Mass Adoption, Tax Evasion Issue
On Aug 26, the Jerusalem Post wrote a very good story about the chances of Israel adopting a state-backed crypto just like Venezuela did a few days ago, although for completely different reasons. While Venezuela launched the Petro recently as an outrageous Hail Mary as it faces 6-figure inflation, Israel’s… – Continue reading
Which Countries is The Cryptocurrency Taxed In?
The cryptocurrency industry is still at a very early stage of its development, so there are no single international rules yet. The governments of individual countries independently try to regulate digital assets. The tax on the cryptocurrency varies in different countries. Within the framework of this article, we will try… – Continue reading
Armenia excludes double taxation in trade with Israel
YEREVAN, May 23. /ARKA/. Armenia’s parliament has ratified today an agreement signed on July 25, 2017 with Israel on the exclusion of double taxation and prevention of tax evasion with respect to property and income taxes. According to Deputy Minister of Finance Armen Hayrapetyan, the agreement will create a favorable… – Continue reading
Israel Tax Authority is hunting for crypto traders on social media
It has emerged that Israel Tax Authority is hunting for crypto traders on social media. Local sources indicate that various local branches of the organization are sending out letters to those they suspect to be trading crypto without reporting it. In the letters, the authorities demand that the recipients should… – Continue reading
Armenia, Israel To Abolish Double Taxation
Armenia and Israel will abolish double taxation, a corresponding draft decision was approved at a cabinet meeting on Thursday, March 22. Israel and Armenia expressed a wish to bolster and expand relations when the former’s foreign minister Edward Nalbandian met the latter’s prime minister Benjamin Netanyahu in November 2017. During… – Continue reading
Tax chief: Israel has become world’s laxest tax haven
Moshe Asher: Exempting immigrants and returning residents from reporting is unjustifiable as a matter of principle. The “Milchan Law,” which grants tax and reporting benefits to new immigrants and returning residents and is the subject of the suspicions against Prime Minister Benjamin Netanyahu in the gifts case (Case 1000), was… – Continue reading
Israel set to adjust tax policies to counter Trump reform, tax chief says
Also, multinational companies with a physical presence in Israel will soon get their first tax bill Israel will need to amend its corporate tax policies to counter the effects of US President Donald Trump’s tax reform, the head of Israel’s Tax Authority head acknowledged — but only slightly. “There will… – Continue reading
OECD asks top Israeli cos to rate Tax Authority
More than 100 companies with international operations are being asked for the first time to give the Tax Authority marks for its performance. Taxpayers in Israel rarely have the opportunity to rate the performance of the Israel Tax Authority. Even if they did, they would be apprehensive about doing so… – Continue reading
Report: French tax authority targets Jews; France denies allegation
‘Globes Israel’ claims that a secret department was set up in France’s tax authority specifically to investigate French Jews for tax evasion. The French have set up a secret department within their tax authority that employs 20 Hebrew speakers in order to find out if Jews are trying to evade… – Continue reading
Israel Tax Authority reintroduces voluntary disclosure
Ahead of the CRS agreement, the procedure enables Israelis to disclose unreported income without facing criminal proceedings. As reported last month by “Globes,” ahead of the anticipated implementation of the Common Reporting Standard (CRS) agreement for automatic exchanges of information between tax authorities, and given the Israel Tax Authority’s stepped… – Continue reading
Hapoalim Canadian customers say bank aided tax evasion
114 taxpayers in Canada’s voluntary disclosure program say that the Israeli bank helped them evade taxes. As if the headache of the investigation by US authorities were not enough, Bank Hapoalim (TASE: POLI), managed by CEO Arik Pinto, discovered two days ago that Canada was also taking aim at it…. – Continue reading
Tax Authority toughens rules on Israelis relocating abroad
Even Israelis residing overseas for three years are being required to pay tax in Israel on their income during that period. Quite a few Israelis who emigrated from Israel, lived abroad for certain periods, and did not report their income there, claiming that they are not residents of Israel, have… – Continue reading
New Private Tax Ruling Clarifies the Conditions for New Immigrants to Obtain an Israeli Residency Certificate
Under Israeli tax law, New Immigrants are entitled to various tax benefits, including an exemption from taxation with respect to non-Israeli sourced income. Due to these benefits, many taxpayers have argued that since they immigrated to Israel, they are entitled to Israeli tax residency certificate, even though they have not… – Continue reading
Multinationals Warned on Coke’s $41 Million Israel Tax Claim
Israel’s $41 million tax demand from the Coca-Cola Co. on royalties from its Israeli licensee could mark the start of a wave of claims against U.S. and other multinationals with similar business operations in the country. That could lead to a conflict with U.S. and other authorities about which country… – Continue reading
Israel, Armenia Sign MoU on Abolishing Double Taxation
Israel wants to develop friendly relations with Armenia, according to that country’s Regional Cooperation Minister, Tsakhi Hanegbi, who told Foreign Minister Edward Nalbandian on Wednesday as he kicked off an official visit to Armenia. He said that the purpose of his visit was to advance those ties. The two signed… – Continue reading
Israel: “Wallet Companies”- Draft Tax Bill Within The Scope Of The Arrangements Law For 2017 – 2018
Recently, the Finance Committee concluded its deliberations regarding the imposition of tax legislation pertaining to “wallet companies” (companies owned by individuals who provide services through them) within the scope of the Arrangements Law for 2017 – 2018. The original draft bill was softened and even sweetened for a particular period… – Continue reading
From Israel to Canada: New Tax Treaty to Help Structure Investments
On December 21, 2016, the new Canada–Israel tax treaty entered into force. The new treaty was signed on September 21, 2016 in New York, and replaces the existing treaty that dates from 1975. For most purposes, the provisions of the new treaty took effect as of January 1, 2017. Overall,… – Continue reading
Israel and U.S. Begin Sharing Data in Crackdown on Tax Evasion
The Israel Tax Authority says Americans have provided information on 35,000 accounts held by Israelis in the U.S. and on an unspecified number of American accounts in Israel. The Israel Tax Authority said Monday it had begun passing on data on Israeli bank accounts held by American citizens and Green… – Continue reading
Israel Tax Authority Deems Bitcoin a Taxable Asset
The Israeli Tax Authority has issued an official draft circular to clarify the tax guidelines that apply to bitcoin adopters. In an announcement last week, the Israel Tax Authority released its draft [PDF] on the proposed taxation of virtual currencies which are considered “assets”. Pointedly, the announcement also cites the… – Continue reading
Switzerland eyes AEOI with 21 countries
Switzerland, which has been working to end its years-long practice of banking secrecy, on Thursday said it aimed to dramatically increase the number of countries it cooperates with toward international fiscal transparency. The Swiss government said in a statement that it wanted to extend the automatic exchange of information (AEOI)… – Continue reading
Israel to Tax Earnings from International Money Transfers
A multinational company based in a jurisdiction that has no tax treaty with Israel must pay Israeli taxes on its Israel-related earnings from international money transfer services, the Israel Tax Authority determined. The ruling is set to apply to the growing number of financial service firms entering the Israeli market,… – Continue reading
Official hails program to track secret Swiss bank funds
A Justice Department official on Friday hailed a U.S. government program that’s helping tax authorities finally track criminal activity around the world. At issue is the Swiss Bank program, which has helped authorities follow funds moved from Swiss accounts to around the world. “A lot of the U.S. account holders… – Continue reading
‘Israeli-Americans who did not do their tax homework at greater risk of penalties’
FATCA disclosure agreement takes effect, worrying some Israeli-Americans Dual American-Israeli citizens finally need to pay up. After years of the US Internal Revenue Service gradually baring down on American citizens living in Israel who evaded reporting income or paying taxes and numerous rounds of amnesty for those belatedly coming forward,… – Continue reading
CANADA, ISRAEL SIGN AGREEMENT ON DOUBLE TAXATION
CANADA, ISRAEL SIGN AGREEMENT ON DOUBLE TAXATION As Prime Minister Justin Trudeau joined other world leaders in addressing the United Nations General Assembly, behind the glare of the camera lights, Foreign Affairs Minister Stéphane Dion met with Israel’s Finance Minster Moshe Kahlon on the sidelines to sign an agreement to… – Continue reading
Nine Middle East Countries At Risk Of EU Sanctions Over Tax Governance
The European Commission has put nine Middle Eastern and North African countries on notice that they are at risk of measures being taken against them to deter tax avoidance. The nine countries (see table below) are Bahrain, Israel, Jordan, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, and the United Arab Emirates… – Continue reading
FATCA US-Israel tax data exchange begins Sept 30
Israeli owners of US accounts and US citizens in Israel have until September 30 to object to information about them being disclosed to the IRS. Within 10 days, all the financial information about Israelis with a green card or a financial association with the US and US citizens with bank… – Continue reading
Australia in talks with Israel for tax treaty, says Treasurer Scott Morrison
The Turnbull government will introduce a tax treaty between Australia and Israel to improve business relations between the two countries. The treaty is linked to the government’s plan to boost innovation in Australia as well as its push to further trade between the two countries as Israel’s technology sector booms…. – Continue reading
Israel Joins OECD Tax Treaty
Israel has signed on as a member of the OECD’s international tax treaty, and as a result the Tax Authority will automatically receive information about bank accounts held by Israelis abroad. Israel, meanwhile, will automatically release information about foreign citizens who have bank accounts here to the governments of countries… – Continue reading
Knesset Finance Committee ratifies US tax act
Local banks will report account holders with American citizenship to the IRS beginning in September The Knesset Finance Committee on Monday approved a series of regulations by the Finance Ministry, paving the way to full implementation of the US Foreign Account Tax Compliance Act, which was signed between the two… – Continue reading
Global Tax Update – June 2016
Asia Pacific The January – March edition of tax highlights for the Asia Pacific region highlights industry developments from Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia and Singapore including: Australia’s new tax system for Managed Investment Trusts The final stage of China’s B2V reform to be rolled out from… – Continue reading
India Signs OECD Country-by-Country Reporting Agreement
In an ongoing effort to increase transparency by multinational enterprises (MNEs), India joined Canada, Iceland, Israel, New Zealand and the People’s Republic of China in becoming the 39thsignatory to the OECD ‘s Multilateral Competent Authority agreement for the automatic exchange of Country-by-Country reports (CbC MCAA). The Country-by-Country Reporting Agreement was… – Continue reading
Russia Signs OECD Agreement on Common Reporting Standard
May 18 — Russia agreed to automatically share financial account information but passed up an opportunity the same day on a similar agreement to exchange company country-by-country reports. Russia signed the OECD’s common reporting standard (CRS) multilateral competent authority agreement May 12 at a meeting of tax administration heads in… – Continue reading
Latest measure to help combat BEPS welcomed
Revenue Minister Michael Woodhouse says the recent signing of the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports will help ensure large multinationals pay their fair share of tax by providing for increased sharing of information between revenue authorities. “Some large multinationals often have intricate financial arrangements in… – Continue reading
China signs tax avoidance pact
China said it has signed a multi-lateral agreement to share tax information on multinational companies, paving the way for it to join the fight on global tax avoidance. China signed the country-by-country tax reporting agreement, along with Canada, India, Iceland, Israel and New Zealand, during a meeting of the OECD… – Continue reading
Cyprus-India build on ties
Lobby groups and business associations from Cyprus and India are working to build trade relations between the two countries with an eye to a new double taxation agreement that is being negotiated. The two sides see mutual benefits to their cooperation. The Indian High Commissioner Ravi Bangar said in an… – Continue reading
New qualifying private placement exemption from UK withholding tax on interest: good news
The Finance Act 2015 introduced certain gateway conditions for the new exemption from UK withholding tax on interest payments for “qualifying private placements.” The Qualifying Private Placement Regulations 2015 setting out the detailed conditions for relief have now been made. While January 1, 2016 was appointed as the effective date,… – Continue reading
Committee advances bill linking tax evasion with money laundering
The Knesset Constitution, Law and Justice Committee on Sunday advanced a bill to link tax evasion with money laundering. The bill would set certain types of tax evasion acts as predicate offenses, meaning they would be considered as part of the larger crime of money laundering. The bill, backed by… – Continue reading
Barclays Israel again questioned on tax evasion
The Tax Authority and Barclays Israel CEO Leonard Rosen are disputing the bank’s VAT liability. Barclays Israel CEO Leonard Rosen was summoned back for additional questioning by the Israel Tax Authority, following the testimony he gave when the alleged tax evasion at Barclays Israel was first reported six months ago…. – Continue reading
