The IRS recently announced an expansion of the list of banks and advisors that trigger the highest penalty bracket within its Offshore Voluntary Disclosure Program. The addition of Sovereign Management & Legal, Ltd. and Bank Leumi to the increased penalty list will have repercussions in Asia, Israel and the United… – Continue reading
NEGOTIATING A DOUBLE Taxation Agreement (DTA) with Israel was a major talking point when that country’s Ambassador to Barbados, Mordehai Bivas, paid a courtesy call on Minister of Foreign Affairs and Foreign Trade, Senator Maxine McClean at her Culloden Road headquarters. Senator McClean told the Ambassador: “One of the things… – Continue reading
Potential impact on American citizens and Israeli citizens living in the United States should not be ignored January 14, 2015, St. Louis, Missouri…A historic agreement between Israel’s second-largest bank and the United States government could lead to substantial financial penalties or even potential criminal prosecution for United States citizens and… – Continue reading
RAMALLAH, January 12, 2015 (WAFA) – Premier Rami Hamdallah slammed Monday Israel’s ongoing withholding of Palestinian tax revenues as illegal. “Israel’s ongoing withholding of Palestinian tax revenues is illegal and stands in violation with international laws and norms,” said Hamdallah during a meeting with Representative of India to Palestine Mahesh… – Continue reading
By next year, the US Internal Revenue Service will require all Israeli businesses to declare whether any shareholders are US citizens. The US Foreign Account Compliance Act (FATCA) regulations are being more broadly applied by Israeli banks. Now that banks in Israel have completed signing up private customers on declarations… – Continue reading
CAIRO, Jan 9 (KUNA) — The Arab League on Friday lambasted Israel for retaining the Palestinian tax revenues, terming the move as “theft and collective punishment” of the Palestinian people. In a press statement today, Assistant Secretary-General for Palestine and Occupied Arab Territories Affairs Mohammad Subeih stressed the necessity of… – Continue reading
January 8 2015 As of 2003, Israeli tax residents are subject to tax in Israel on their worldwide income, including passive income (i.e., interest, dividends and capital gains) generated in their offshore bank accounts. Although more than a decade has passed, many Israeli residents have still not reported on income… – Continue reading
A delegation from the US Internal Revenue Service (IRS) visited Israel last week to meet representatives of the Israel Tax Authority. Sources inform “Globes” that the purpose of the meeting was to implement the agreement for the exchange of information between Israel and the US concerning the accounts of US… – Continue reading
Other bodies announce similar probes; bank agreed to pay $400 million to US he Attorney General’s Office will open an investigation into the Bank Leumi Group, it revealed Thursday, weeks after the bank agreed to pay $400 million to United States and New York authorities for helping American taxpayers hide… – Continue reading
The Attorney General will examine the civil and criminal implications of the bank’s conduct in helping US citizens evade US taxes. Attorney General Yehuda Weinstein is to examine the Bank Leumi (TASE: LUMI) tax evasion affair, in which the Israeli bank helped American customers evade US taxes. Weinstein is consulting… – Continue reading
Chief Palestinian negotiator Saeb Erekat on Saturday described as “piracy” an Israeli decision to stop the transfer of Palestinian tax revenues collected on behalf of the Palestinian Authority. “We were unofficially told a few hours ago that the Israeli government had decided to hold back tax revenues it collects on… – Continue reading
The new year could bring important changes to the tax landscape. Here are several issues that will affect how much taxpayers owe for 2015 and beyond: Federal tax policy There is serious talk of overhauling the federal tax code. “There appears to be a consensus” on making changes, says Stephen… – Continue reading
Swiss banks are training their crosshairs on Israeli customers. Legal sources said that in the past two weeks, the large banks in Switzerland have begun sending many queries to their Israeli customers demanding confirmation either that the assets deposited with the banks were reported to the Israeli tax authorities, or… – Continue reading
The courtroom victory of the only Swiss banker to beat the U.S. in a trial over offshore tax evasion may embolden other indicted financial workers to leave a legal limbo some have endured more than five years. Twenty-five offshore bankers, lawyers and advisers have yet to answer U.S. Justice Department… – Continue reading
A mixed success record has been notched up by the US Justice Department when it comes to prosecuting offshore bankers, advisers and lawyers accused of assisting American taxpayers cheat their taxes. The United States Government, from 2008, has charged 38 individuals, including Swiss bankers like the top three managers of… – Continue reading
Bank Leumi Le-Israel Ltd. (LUMI) agreed to pay $400 million and admit it helped American clients evade taxes for a decade, in a case showing that U.S. prosecutors and New York regulators are extending their probes of offshore tax evasion beyond Switzerland. The Justice Department filed a conspiracy charge today… – Continue reading
A father and son who ran a tax-preparation business were convicted in Los Angeles of conspiring to help clients cheat the Internal Revenue Service by setting up undeclared offshore bank accounts. David Kalai, the founder and former chief executive officer of United Revenue Service, and his son Nadav, who was… – Continue reading
They never really lived in U.S., but still have to pay taxes HONG KONG (CNNMoney) —He left America at the age of seven, has never earned a penny there, but might owe the U.S. government $6,000 in taxes. Meet Elad Shahar, who was born in 1969 to Israeli parents in… – Continue reading
Bank Leumi Le-Israel Ltd. (LUMI) expects to reach an accord with the U.S. government by next month over accusations Israel’s second-largest bank helped Americans evade taxes. “The management believes it is right to reach an agreement with authorities, just as global banks have done,” Leumi’s legal adviser Hanan Friedman said… – Continue reading
A senior figure is suspected of secretly keeping accounts in a Swiss bank that were not reported to the tax authorities in Israel, in an affair called the “Swiss Bank Affair,” sources inform “Globes.” Israel Tax Authority investigators conducted a search of the senior figure’s home. As in the information… – Continue reading
Thousands of rich Australians have come forward to declare billions of dollars in untaxed assets and income stashed in bank accounts in Switzerland and in other countries. The rush comes as what the Australian Taxation office says is the last tax amnesty it will ever offer comes to an end…. – Continue reading
(Corrects headline to remove reference to probe at UBS) Dec 8 (Reuters) – Israel has arrested 28 people so far as part of an investigation into Israelis allegedly holding undisclosed bank accounts with Swiss bank UBS, the Tax Authority said on Monday. “The investigation continues and more arrests are expected,”… – Continue reading
Tax Authority considering criminal charges against bank on suspicion of assisting Israeli clients evade taxes. It has been disclosed that Roni Elias is the high-ranking Israeli at the Swiss-based bank UBS who was arrested this summer on a visit to Israel on suspicion of helping Israeli clients evade taxes. The… – Continue reading
Bank Leumi Le Israel (LUMI) BM is close to a $400 million settlement of federal and state investigations into whether it helped Americans evade taxes, according to a person with knowledge of the matter. Under the proposed accord, Bank Leumi would pay about $270 million to the Justice Department and… – Continue reading
Nov. 26 (Bloomberg) — Bank Leumi Le Israel BM is close to a $400 million settlement of federal and state investigations into whether it helped Americans evade taxes, according to a person with knowledge of the matter. Under the proposed accord, Bank Leumi would pay about $270 million to the… – Continue reading
A source revealed that in order to settle the investigation into whether Bank Leumi Le-Israel (LUMI) BM helped Americans evade taxes, New York’s banking regulator will ask for over $300 million. The head of the state’s Department of Financial Services, Benjamin Lawsky, is looking for an amount that surpasses what… – Continue reading
Nov 5 (Reuters) – Israel arrested 14 people, including a senior UBS investment adviser, as part of an investigation into Israelis allegedly holding undisclosed bank accounts with UBS worth hundreds of millions of euros, the Tax Authority said on Wednesday. All 14 had been released on bail soon after their… – Continue reading
A retired senior vice president at Israeli-based Mizrahi Tefahot Bank Ltd. (MZTF) was acquitted in Los Angeles federal court on charges he helped U.S. customers conceal their assets from the Internal Revenue Service. Jurors deliberated four hours yesterday before clearing Shokrollah Baravarian, 82, of conspiring to defraud the U.S. and… – Continue reading
* Leumi says working with NY State regulators on settlement * Says too soon to estimate final amount of deal * Bank rejects $300 mln settlement offer from NY State * Leumi has provisioned 950 mln shekels for final settlement * Share price falls 1.9 pct in Tel Aviv trading… – Continue reading
New York’s banking regulator will ask for more than $300 million to settle an investigation into whether Bank Leumi Le-Israel (LUMI) BM helped Americans evade taxes, a person familiar with the matter said. Benjamin Lawsky, head of the state’s Department of Financial Services, is seeking more than what the bank… – Continue reading
Move will have dramatic implications for both overseas investors with assets in Israel and Israelis with undeclared assets abroad. Israel will be joining an international mechanism for the sharing of information on financial accounts, the Finance Ministry announced Monday. The cross-border exchange of information, which is due to be in… – Continue reading
Wealth inequality is growing worldwide, according to a new report by Credit Suisse. A greater share of wealth is being held by a smaller number of ultra-rich families worldwide as larger inheritances, family trusts, and similar arrangements to avoid taxes help the ultra-wealthy gain a greater portion of total capital… – Continue reading
Moshe Asher is seeking information about accounts in Switzerland belonging to Israelis. The Israel Tax Authority is stepping up it efforts to combat overseas tax shelters for Israelis. Sources inform “Globes” that Israel Tax Authority director Moshe Asher is expected to travel to Switzerland next week in order to meet… – Continue reading
A federal crackdown and a new act make life tougher for lawyers and accountants. Criminal tax attorney Robert Fink views the conviction and sentencing of his client Dr. Michael Canale—on tax fraud charges in New York state federal court in 2012—as representative of everything that’s wrong with the government crackdown… – Continue reading
Noble Energy and Jordan recently signed a nonbinding agreement for the sale of 8.5% of Leviathan’s gas over the course of 15 years, for as much as $15 billion. By Avi Bar-Eli | Sep. 9, 2014 | 2:47 AM The preliminary deal for the sale of gas to Jordan from… – Continue reading
Principal source of information for Israel Tax Authority probe comes from someone who obtained information from foreign tax authorities and handed it over to Israeli officials. A gag order is expected to be lifted in the next few days on a major investigation of tax evasion by scores of Israelis… – Continue reading
Israel announced on August 24 that it has signed a new tax treaty with Germany. Israel announced on August 24 that it has signed a new tax treaty with Germany. It still needs to be ratified by the Knesset and the German Parliament and is expected to become effective on… – Continue reading
On August 26, Burger King announced that it entered into an agreement to acquire Tim Hortons, Inc., the Canadian coffee-and-doughnut chain, in a transaction that will be structured as an “inversion” (i.e., Burger King will become a subsidiary of a Canadian parent corporation). The deal is expected to close in 2014… – Continue reading
Agreement comes into force at beginning of 2015, also states that Holocaust survivors are exempt from taxes on compensation. By Efrat Neuman | Aug. 29, 2014 | 12:47 PM While war was raging between Israel and Hamas, Finance Minister Yair Lapid made a low-profile trip to Germany this month, officially… – Continue reading
Israeli Finance Minister Yair Lapid and his German counterpart, Wolfgang Schäuble, signed a revised German-Israeli double taxation agreement in Berlin on August 21, 2014, according to a recent announcement from the German finance ministry. The convention, which was last amended in 1977, has been adapted to make it correspond to… – Continue reading
Foreign Account Tax Compliance Act (FATCA) has been in force for a month and still more countries are joining the tax network. So far, 101 countries and financial jurisdictions have either signed or agreed to join FATCA. FATCA is aimed at identifying US taxpayers with offshore bank accounts and investments. Overseas… – Continue reading
On June 30, the United States and Israel signed an intergovernmental agreement (IGA) regarding FAT CA. FAT CA became effective in the US and other countries on July 1 and will officially take effect in Israel once the Knesset passes enabling legislation. But the Bank of Israel has already instructed… – Continue reading
Deal Allows U.S. to Enforce its Foreign Account Tax Compliance Act, or FACTA JERUSALEM—Israel has joined 80 other countries in signing an agreement with the U.S. government on fighting offshore tax evasion, the Israeli finance ministry said Wednesday. According to the agreement, Israel’s tax authority will submit information on local… – Continue reading
With regard to business operations, a resident of one country (e.g., Panamanian company) may be taxed in the other country (e.g., Israel) if it has a “permanent establishment” (PE) in the other country. Panama is famous for its canal, colorful history and cool offshore tax regime. To that we can… – Continue reading
US federal and state tax may then be creditable against any Israeli tax on US-source income and gains, pursuant to comprehensive rules of the US-Israel tax treaty. But US penalties cannot be credited in Israel. irstly, for international businesses. We have often commented on the pressures facing growing international businesses…. – Continue reading
United States citizens who have accounts or financial assets in Israel soon will have even more incentive than previously to disclose them to the Internal Revenue Service (IRS). The Foreign Account Tax Compliance Act (FATCA), which takes effect July 1 in Israel, is meant to combat tax evasion and fraud… – Continue reading
CARACAS, May 17, 2014 – (WAFA) – President Mamhoud Abbas signed Saturday energy and double taxation avoidance agreements with his Venezuelan counterpart Nicolas Maduro at Miraflores presidential palace in Caracas. Abbas started Friday a three-day official visit to the Caracas, where he was received by Maduro. They exchanged views on the peace process as well… – Continue reading
Bloomberg BNA is reporting that Israel has signed a FATCA IGA. The agreement is a Model 1 agreement, meaning that Israeli financial institutions will will report information about U.S. customers’ accounts to the Israeli tax authorities, who will then send that information to the IRS. The news comes only a… – Continue reading
Last week, Israel and the US signed an information-sharing agreement for financial assets (primarily bank accounts) belonging to Israeli and US citizens, in an attempt to improve tax enforcement in both countries. “US residents who do not disclose information about accounts they hold in Israel could risk fines of up to 50%… – Continue reading
Monday, May 5 saw the Finance Ministry of Israel confirm that the US and the Jewish-majority state had concluded the text of an intergovernmental agreement (IGA) for the implementation of the Foreign Account Tax Compliance Act (FATCA). Earlier, with Israel and the US reaching an agreement over sharing of tax… – Continue reading
