Publications

January 17th, 2018

Daniel Paserman Head of Tax, and Ofer Levy, in a client update on the Israeli CFC tax regime on Israeli investments abroad.

Daniel Paserman(CPA), Head of Tax, and Ofer Levy CPA), in a client update on the Israeli CFC tax regime on Israeli investments abroad. For further reading:

January 10th, 2018

Partner Avner Finkelshtein surveys the proposed reform to the Israeli Antitrust Law.

Partner Avner Finkelshtein surveys the proposed reform to the Israeli Antitrust Law. For further reading:

December 31st, 2017

Lior Porat, Managing Partner at the firm, in a special end-of-year section of Yedioth Ahronoth.

Lior Porat, Managing Partner at the firm, took part in a special section of Yedioth Ahronoth, in honor of the New Year, in which senior lawyers selected the most eminent legal trends taking place this past year. Mr. Porat noted the entrance of the blockchain platform into the legal arena, posing as a major development. For further reading (Hebrew):

December 6th, 2017

Tal Sela, an associate at our firm, and Prof. Ariel Bendor from Bar-Ilan University, identifies three eras in which the Supreme Court exercised normative judicial discretion differently, in an article published in the "Mishpatim" law review vol. 46(3). For the full article (Hebrew):

Tal Sela, an associate at our firm, and Prof. Ariel Bendor from Bar-Ilan University, identifies three eras in which the Supreme Court exercised normative judicial discretion differently, in an article published in the "Mishpatim" law review vol. 46(3). For the full article (Hebrew):

November 9th, 2017

Daniel Paserman (CPA), Head of Tax, is quoted in Mathew Kalman's article in Bloomberg Law, in which he comments on the new legislation regarding the withdrawal of funds and utilization of company assets by its shareholders. For further reading:

 

Daniel Paserman (CPA), Head of Tax, is quoted in Mathew Kalman's article in Bloomberg Law, in which he comments on the new legislation regarding the withdrawal of funds and utilization of company assets by its shareholders. For further reading:


November 7th, 2017

Daniel Paserman (CPA), Head of Tax, and Danielle Skald (CPA), in a client update on the transfer of funds overseas without being subject to withholding tax in Israel. For further reading:

Daniel Paserman (CPA), Head of Tax, and Danielle Skald (CPA), in a client update on the transfer of funds overseas without being subject to withholding tax in Israel. For further reading:

October 29th, 2017

Assaf Harel offers 3 key takeaways from the recent Equifax data breach (Hebrew).

September 19th, 2017

Daniel Paserman (CPA), Head of Tax, and Ofer Levy (CPA), in a client update on LLC classification from an Israeli tax perspective. For further reading:

September 8th, 2017

Gornitzky's Antitrust team, led by Avner Finkelshtein, in a client update on the Supreme Court's decision in the class action against a cartel.

July 24th, 2017

Daniel Paserman (CPA), Head of Tax, and Inbar Barak-Bilu (C.P.A), in an update on a temporary reduced tax rate for dividend distribution, valid until September 30, 2017.

July 2nd, 2017

In an op-ed published in The Marker, Adv. Assaf Harel reviews Israel's new privacy regulations that impose comprehensive cyber-security requirements on organizations that collect or hold personal data. The article was published as part of Tel Aviv University's 2017 Cyber Week. For further reading (Hebrew):

June 7th, 2017

Avner Finkelshtein, Head of Antitrust, in a client update on the European Commission's decision to fine Facebook.

May 3rd, 2017

Timor Belan (Partner) and Assaf Harel (Associate) survey the new regulations and explain key takeaways for businesses operating in Israel (Hebrew).

May 1st, 2017

Gornitzky's Labor Law team in a client update on the obligation of depositing a deposit for employing infiltrators.

March 16th, 2017

Israel Anti-Trust Authority issued a draft opinion on information sharing for cybersecurity. Partners Timor Belan, Avner Finkelshtein and associates Assaf Harel and Shira Plotnik review attributes of the draft.  

Israeli Anti-Trust Authority Issues New Draft Opinion on Information Sharing for Cybersecurity Purposes*

Growing cybersecurity threats require businesses to take various measures to protect their systems, including by sharing information with other businesses - even competitors - to facilitate better evaluation of existing threats and to promote the protection of computer-based systems. However, the sharing of information among competitors may also be considered prohibited under anti-trust laws. In this context, and given the value of information sharing as a measure for promoting cyber-security, Israel’s Anti-Trust Authority (the “IAA”) has recently published a draft opinion (the “Draft Opinion”) that is meant to clarify the boundaries for the sharing of cyber-related information among competitors.
According to the Draft Opinion, sharing of information that is not related to business activities, but solely to cyber-security threats (for example, information on system vulnerabilities, or indications of possible cyber events), is not likely to limit competition, and may even promote it, by assisting all competitors to overcome cyber-attacks and to maintain functioning and protected systems. Accordingly, the Draft Opinion states that the IAA would not view such information sharing as a measure that restricts or reduces competition.
The Draft Opinion further states that due to the contribution that access to security-related data could provide to a company’s ability to address cyber-security threats, the prevention of access to cyber-security data sharing systems, without reasonable justification, may negatively affect competition.
The Draft Opinion is open for public comments until April 5, 2017


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For further information please contact:
Timor Belan (partner), Avner Finkelshtein (partner), Assaf Harel or Shira Plotnik

*This client update is designed to provide general information only, is not a full or complete analysis of the matters presented, and may not be relied upon as legal advice.

February 6th, 2017

In 2016, our Tier 1 Banking & Finance practice took a lead role in some of Israel’s major transactions. We are pleased to share with you our Banking & Finance highlights of 2016

February 1st, 2017

Third apartment taxation was recently approved as part of the regulation law.  our partners review the latest tax principals . For further reading (Hebrew):   

January 4th, 2017

Partner Kfir Yadgar and associate Reut Oshaya Holzer review the reduction in hotel industry regulations, intended to leverage competitiveness, incentivizing construction and reduction in vacation cost (Hebrew)

January 2nd, 2017

A proposed amendment to the Israeli Copyright Act intends to combat online copyright infringement by focusing on "intermediaries". Our team survey the key aspects of the proposed amendment.

An amendment to the Israeli Copyright Law, recently proposed by the Ministry of Justice, offers new measures against online copyright infringement. The proposed measures are not directly aimed at the publisher of the infringing material, but at intermediaries, such as internet service providers and other individuals or entities that either host the infringing material or could identify the publisher of such material.


An interesting aspect of the proposed law, is that it seeks to provide courts with the authority to issue an order for revealing identifying details (such as the IP address) of a person who anonymously published copyright infringing material online, at the request of the copyright or moral right owner. Such orders, which according to the proposal would be issued to individuals or entities that are believed to hold information on the publisher of the infringing material, are meant to facilitate filing of lawsuits against publishers of infringing material and, as a result, to deter potential infringers. Prior to providing identifying details to the owner of the infringed rights, the court would be required to allow the publisher of the infringing information (in case the court is able to identify such a person) to object to revealing his/her details.


In addition, the proposed law would allow courts to issue injunction orders requiring internet service providers and providers of storage services to fully or partially restrict access to a website that contains copyright infringing material, provided that such infringing material constitutes the main content of such website. Although even under existing law courts can issue injunction orders to prevent copyright infringement, the proposed amendment is meant to better clarify towards whom such orders would be aimed and what the court should consider when deciding on requests to issue such injunction orders. Among others, prior to issuing such an injunction order, the court would need to consider, the severity of the claimed infringement, possible alternatives to restricting access to the site and the effects such restriction of access would have on the public. This proposal aims to provide an effective and immediate course of action for ceasing online infringements.


In addition to the abovementioned measures, the proposed amendment suggests to broaden the current definition of “Indirect Infringement” so that such definition would include making works available to the public, even without creating an infringing copy. Such Indirect Infringement would include, for example, unauthorized streaming of copyright protected films or television shows. In order to deter such forms of online infringements, which appear to be fairly popular nowadays, the proposed amendment also suggests penalizing the making of works available to the public and the broadcasting of a work, provided that such infringements were done for the purpose of making a profit.

 

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For further information please contact:

Timor Belan (partner), Assaf Harel or Shira Plotnik

 

This client update is designed to provide general information only, is not a full or complete analysis of the matters presented, and may not be relied upon as legal advice.

November 20th, 2016

Daniel Paserman (Partner), Inbar Barak Bilu and Michal Karzbum surveying the main points of the voluntary disclosure procedure, now allowing diamond dealers to take part in the process (Hebrew)

October 13th, 2016

Daniel Paserman (Partner) and Danielle Skald in an article for Bloomberg BNA on the Israeli Tax Authority’s tax circular, addressing the taxation of foreign entities that operate in Israel via the internet.

August 31st, 2016

Timor Belan (Partner), Nir Keidar and Sharon Reingwirtz provide a brief summary of the effect of the new Israeli Anti-Terror Law (2016) on the reporting obligations of Financial Institutions.


(Hebrew)

August 10th, 2016

Dubi Gross (Partner) together with Latham & Watkins review how foreign private equity sponsors and their lenders are finding solutions to local law structuring issues.

August 1st, 2016

Update regarding the extension of Israeli Voluntary Disclosure Procedure & Inclusion of Tax Offences in Prohibition on Money Laundering Law, by Daniel Paserman (Partner) and Inbar Barak-Bilu. 

On June 30, 2016, the Israel Tax Authority issued a notice stating that the Voluntary Disclosure Procedure will be extended until December 31, 2016 and will also apply to money laundering offences, consolidated by original offences, which shall be considered tax offences liable to the Voluntary Disclosure Procedure. 
It should be noted that on April 7, 2016, amendment No. 14 to the Prohibition on Money Laundering Law was published, adding several tax offences pertaining to Income Tax, Value Added Tax and Real Estate Tax as money laundering offences.

The Extension of the Voluntary Disclosure Procedure

Until December 31, 2016, voluntary disclosure applications under the Voluntary Disclosure Procedure ("VDP") may be filed through one of the following paths: (1) a “regular” application; (2) an anonymous application; and (3) a short application, as follows:
  • Under the “regular” application path, the identity of the taxpayer is disclosed once the application is submitted. 
  • Under the anonymous application path, the disclosure is submitted on a no-name basis and the identity of the taxpayer is disclosed only after a tax agreement has been reached with the Israel Tax Authority (“ITA”) to settle the outstanding tax liability. 
  • Under the short application path, the disclosure is handled through an expedited settlement process, allowing taxpayers to submit revised tax returns. The short application path is available only to taxpayers whose undisclosed capital does not exceed NIS 2 million and whose aggregate undisclosed taxable income does not exceed NIS 0.5 million. 
Immunity from Criminal Proceedings in Accordance with the VDP
In accordance with the VDP launched on September 7, 2014 the immunity is granted only to tax offences mentioned under the tax laws, among others, the Income Tax Ordinance, the Real Estate Taxation Law, Value Added Tax Law and any relevant tax order. 
In accordance with the ITA's latest publication, because of the amendment to the Law (see below), the VDP will also apply to offences of money laundering originating from tax offences.

The Inclusion of Tax Offences in Prohibition on Money Laundering Law

In this regard, it should be noted that on April 7, 2016, amendment No. 14 to the Prohibition on Money Laundering Law, 2000 (the "Law") was published, and it shall come into force on October 7, 2016. 
In accordance with the new amendment, the Law will include specific severe tax offences relating to income tax, value added taxation and real estate taxation as money laundering offences.
The Following Offences shall be Considered Money Laundering Offences
The Law now includes, inter alia, omitting income statements; making a false statement or entry; providing a false answer, whether verbal or written; preparing, maintaining or allowing another to prepare or to maintain false account books or other false records; using any fraud, artifice or contrivance; and presenting a fraudulent document to whoever paid the income in order to prevent or reduce the deduction of tax at the source.
Implications of the Amendment to the Law
  • Stricter penalty of up to ten years in prison, as opposed to a lesser prison term under the tax legislation. 
  • Under the Law, the property of the offender may be confiscated to the sum of the property that was used in the offence, or used to commit the offence or was intended for the purpose of making the offence.
  • Exchange of information between the Israel Money Laundering and Terror Financing Prohibition Authority and the Israel Tax Authority. 
For further information please contact Adv. (CPA) Daniel Paserman, Head of Tax (paserman@gornitzky.com) or Adv. (CPA) Inbar Barak-Bilu (inbarb@gornitzky.com) at Gornitzky & Co., +972-3-7109191.
 
 

This brief memorandum provides general information and does not constitute or substitute any legal advice. As these issues are complex and of a circumstantial nature, which involve different tax and legal aspects, each case should be examined according to its individual circumstances.

June 7th, 2016

Client Update – The EU Data Protection Regulation Imposes New Requirements on Non-EU Companies and May Affect Your Non-EU Business By  Timor Belan (Partner) and Assaf Harel 

Client Update – The EU Data Protection Regulation Imposes New Requirements on Non-EU Companies and May Affect Your Non-EU Business

 

If your company markets products or services in the EU or applies online tracking techniques to individuals in the EU, the new EU General Data Protection Regulation (GDPR) may affect your business.

 

The GDPR, which was adopted on April 14, 2016, replaces the current EU Data Protection Directive (Directive 95/46/EC) and seeks to address new challenges brought by rapid technological developments, by providing a strong and coherent data protection framework, backed by strong enforcement.

 

This new regulation imposes new comprehensive requirements on non-EU companies that process personal data of data subjects in the EU in connection with the offering of goods or services in the EU or monitoring behavior of data subjects in the EU. For example, an Israeli company that directly markets its products in the EU, or that applies certain online tracking techniques to individuals in the EU, may be subject to the GDPR, even if it has no physical presence in the EU.

 

Among the requirements applicable to non-EU companies, are the obligations to:

  • provide data subjects with information on the purpose of data processing, the recipients of the data and additional information necessary to ensure fair and transparent processing (such as information on profiling of data subjects). This information should be provided in a concise, transparent, intelligible and easily accessible form, using clear and plain language, in particular for any information addressed specifically to children;
  • report data breaches to a “supervisory authority” (generally, within 72 hours after becoming aware of the breach), and in some cases to the data subjects themselves;
  • comply with demands of individuals to erase their personal data without undue delay (in concert with the concept of the “right to be forgotten”); and
  • in some cases, to appoint a representative in the EU.

Violation of certain provisions of the GDPR may lead to a fine of up to €20 million or 4% of the total worldwide turnover (whichever is higher).

 

Companies are provided a two-year transition period as the GDPR will become applicable from May 25, 2018. It will be applicable in all EU Member States, with no need for national legislation.

 

As mentioned above, the GDPR may be applicable to companies irrespective of whether they are physically present in the EU. Accordingly, businesses are encouraged to examine whether their activities fall within the scope of the GDPR and, if so, to use the transition period, until the GDPR becomes applicable, in order to ensure that their policies and practices are aligned with the requirements of the GDPR.

 

Gornitzky’s Cyber-Security, Privacy and Data Protection team offers clients a well-rounded multidisciplinary approach to navigating the emerging regulatory and legal frameworks in the field of cyber security, privacy and data protection.

 

 

For further information on these developments, please feel free to contact: Timor Belan (Partner), Assaf Harel (Associate)

 

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This client update is designed to provide general information only, is not a full or complete analysis of the matters presented, and may not be relied upon as legal advice.

April 20th, 2016

Dubi Gross (Partner) and Yair Shiloni (Partner) review the new innovative ISA regulation designed to open the Israeli retail mutual funds market to foreign fund managers without undergoing the Israeli regulatory process.

Dubi Gross (Partner) and Yair Shiloni (Partner) review the new innovative ISA regulation designed to open the Israeli retail mutual funds market to foreign fund managers without undergoing the Israeli regulatory process.


Read full article 

February 16th, 2016

Elite Elkon (Partner) surveys the major changes anticipated to take place in the Israeli Credit Market in a featured article in the prominent UK legal magazine - "The Lawyer"

Elite Elkon (Partner) surveys the major changes anticipated to take place in the Israeli Credit Market, mainly aimed to reduce concentration and to increase and diversify the sources of credit for retail and SMEs, in a featured article in the prominent UK legal magazine - "The Lawyer". In her article, regarding financial law in Israel, Mrs. Elkon sheds light on the changes and new contemplated opportunities arising, including, among others, The Shtrum committees' recommendations to sell the major Israeli credit card companies held by the country's leading banks and easing the regulatory regime on payment card companies.  

 

Read full article

January 12th, 2016

Adv Aviram Handel (Partner) presents estate planning options and obstacles when beneficiaries, assets and bank accounts are located around the world.

Adv Aviram Handel (Partner) presents estate planning options and obstacles when beneficiaries, assets and bank accounts are located around the world.

 

Read full article (Hebrew)

December 1st, 2015

Capital Losses in Tax Law by Adv. Daniel Paserman (CPA)

In recent years, many Israeli taxpayers have absorbed significant capital losses in capital markets in Israel and overseas. The tax laws in Israel allow the offsetting of losses against taxable gains; however, they set forth restrictions with respect to the manner of offsetting these losses. Below is a brief overview of the rules with respect to the offsetting of capital losses as set forth in Section 92 of the Israeli Income Tax Ordinance 5721-1961 (the “Income Tax Ordinance”) (while there are additional rules that pertain, inter alia, to the offsetting of business (active) losses, this bulletin is limited to Section 92 of the Income Tax Ordinance and is not intended to exhaust the entire subject of offsetting losses).

 

The offsetting of capital losses that were created during the current tax year 

The Income Tax Ordinance determines that a capital loss that is realized in the current tax year may be offset against a capital gain or betterment (land appreciation). If the capital loss is sustained from the sale of an asset outside of Israel, it will first be offset against a capital gain from an asset outside of Israel, and only thereafter, will it be offset against a capital gain of an asset in Israel.

 

In addition to the foregoing, a capital loss that is realized from the sale of securities may also be offset against interest income or dividend income that were received in respect of the said security or against interest income or dividend income that were received in respect of other securities, provided that the tax rate that applies to the interest or to the dividend shall not exceed the corporate tax rate (which currently stands at 26.5%, but which, effective from January 1, 2016, will be reduced to 25%).

 

The offsetting of capital losses that were created in previous years (carryforward losses)

A capital loss that was not offset in its entirety during a specific tax year will be offset in the following tax years against capital gains only, provided that the following terms and conditions shall be satisfied:

 

  • A tax return was filed in the year in which the capital loss was created.
  • A capital loss from the sale of an asset outside of Israel will first be offset against a capital gain from the sale of an asset outside of Israel.
  • A carried forward capital loss must be offset against a capital gain that has been realized, even if the Israeli tax rate that applies to the said capital gain is lower than the regular rate of tax.
  • A carried forward capital loss may be offset only against a capital gain or betterment (land appreciation), and not against interest or dividends.

 

 Recommendations 

In the event where there are both unrealized capital losses and income received from interest or dividends during the same tax year, it may be worthwhile to consider realizing the capital losses in order to offset the capital losses against such income. It is important to note that the realization of the capital loss must occur in the same tax year in which the income from interest or dividends was generated. Similarly, in the event of both an existing capital loss which has not been utilized (whether such capital loss has been carried-forward or is related to the current tax year) and unrealized capital gain, it may be worthwhile to consider realizing such capital gain so that the non-utilized capital loss may be used to offset such capital gain. 

Furthermore, the foregoing shows that capital losses that were sustained in previous years (carryforward losses) may only be offset against capital gains that will be realized in the coming succeeding years (and not against income from interest or dividends). Therefore, in order to offset the carryforward capital losses, it is necessary to invest in assets that may generate capital gains (and not interest or dividends). Examples of such assets may include: shares, options, "short" transactions, funds which invest in securities (e.g. in interest bearing bonds), real estate, etc.

 

  

For further information and advice please contact Adv. (CPA) Daniel Paserman (paserman@gornitzky.com) at Gornitzky & Co., +972-3-7109191.

 

 

This tax bulletin provides general information and does not constitute or substitute any legal advice. As these issues are complex and of a circumstantial nature, which involve different tax and legal aspects, each case should be examined according to its individual circumstances.


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November 15th, 2015

Partners Pinhas Rubin and Daniel Paserman covered the latest trends in Israeli tax law in the 2015 publication of "Doing Business in Israel".

March 29th, 2015

In their article published by Chambers Global, Gur Y. Savir and Yoav Meer give an overview of recent developments in the Israeli economy, including major legislative amendments enacted by the government, such as those to the Companies Law and the “Anti-Concentration Law”, as well as other regulatory developments.

November 17th, 2014

In their article in the 2014/2015 Global Banking & Financial Policy Review, Elite Elkon May-Tal and Eli Elya give an overview of recent developments in Israeli banking, including actions taken to ensure the country's financial stability, the promotion of competition, non-bank financial institutions as major players in the market, collaboration with FATCA, and more.

September 14th, 2014

The New Israeli Voluntary Disclosure Program by Adv. Daniel Paserman (CPA)

  • On September 7, 2014, the Israel Tax Authority ("ITA") launched a new voluntary disclosure program (the "New VDP"). The New VDP enables non-compliant taxpayers to come forward and arrange their reporting and tax obligations in exchange for which the ITA (in collaboration with the State Attorney) undertakes not to initiate any criminal proceedings against such taxpayers. The New VDP applies to any undisclosed income and assets, whether in Israel or abroad, passive or active. The New VDP replaces previous programs and is in effect until the end of 2016.
  • This brief memorandum presents the main criteria and guidelines of the New VDP.

  • The Voluntary Disclosure Procedure
  • The application is submitted to the Chief Investigations and Intelligence Officer of the ITA. Once the latter approves the application, the taxpayer will be referred to the relevant civil officer, in order to reach an agreement that will determine the tax liability.
  • The New VDP includes two special alternatives, which are available only for the coming year (although the general New VDP will be in effect until the end of 2016):
    • An anonymous application - according to this alternative, the application is submitted on an anonymous basis and the identity of the taxpayer is disclosed only after a tax agreement has been reached with the civil officer. However, once the taxpayer is referred to the civil officer, he is required to disclose his identity within 90 days, unless the civil officer grants him an additional 90 day extension. If after this period his identity has not been disclosed, the application will be denied. Since this is a relatively short period, it is important to collect and prepare all relevant information and documents in advance.
    • "Green Track" application - if the total capital included in the application does not exceed NIS 2 million and the aggregate taxable income does not exceed NIS 0.5 million, the taxpayer may apply according to this special alternative. The application is submitted to the Chief Investigations and Intelligence Officer together with amended tax returns for the relevant period. Once the application is approved, the amended tax returns will be accepted and the taxpayer will pay the tax liability and receive criminal immunity.
  • Offsetting Losses - Losses declared under the above two alternatives may be offset only against income and capital gains disclosed in the same application and with respect to the same tax years (losses not offset cannot be carried forward). At the same time, losses reported outside the voluntary disclosure application cannot be offset against income and capital gains disclosed in the application.


  • Conditions for the Voluntary Disclosure Procedure
  • The voluntary disclosure is honest, all-encompassing and done bona fide.
  • At the time of the application, the ITA has no information regarding the voluntary disclosure, and no investigation or examination has been conducted by the ITA or by the Israeli Police with respect to matters related to the voluntary disclosure, including with respect to the spouse, their controlled companies or partners' files.
  • The ITA is entitled not to authorize a voluntary disclosure application if there is information related to the voluntary disclosure in any other governmental authority, the media or in civil or criminal proceedings conducted before a judiciary body in Israel or abroad.
  • In exceptional cases, where there are personal and extraordinary circumstances (such as serious illness), the ITA is entitled to approve a voluntary disclosure application, even if it is in possession of information as detailed above.

 

  • Additional Limitations
  • If the application has not been approved, the ITA will not use the information disclosed in the application in any criminal or civil proceedings. If, however, the application has not been done bona fide and with full disclosure, the information may be used as evidence in a criminal or civil proceeding.
  • A person is entitled to benefit from the voluntary disclosure procedure only once. An additional application will only be accepted under special circumstances (e.g. - serious illness, advanced age, etc.).
  • The New VDP will not apply to income originating from illegal activities.

 

 

For further information and advice please contact Adv. (CPA) Daniel Paserman (paserman@gornitzky.com) or Adv. Yoav Kremer (yoavk@gornitzky.com)  at Gornitzky & Co., +972-3-7109191.

 


This brief memorandum provides general information and does not constitute or substitute any legal advice. As these issues are complex and of a circumstantial nature, which involve different tax and legal aspects, each case should be examined according to its individual circumstances.


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April 24th, 2014

In his article published by Globes-Dun's 100,  Gur Y. Savir gives an overview of the changes to the Partnerships Ordinance.


Hebrew Item
March 17th, 2014

In his article published by Chambers Global, Dubi Gross gives an overview of recent developments in the Israeli economy, as well as amendments enacted by the government, including those to the Companies Law and the Israeli Tax Ordinance.

August 13th, 2013

In the G-Competition newsletter, Avner Finkelshtein (Partner), Sagit Ohana-Livne (Partner) and Ehud Katzenelson give an overview of the Israel Antitrust Authority's restrictions on the disclosure of information within the framework of a due diligence process.

August 31st, 2012

In their article, Dr. Zvi Gabbay and Mr. Etai Mashiah analyze the practice that has developed in the U.S. regarding internal compliance programs, in effort to learn what effective internal compliance programs look like, in practice, and how regulatory and enforcement authorities are expected to relate to them in their decisions. The article also raises a discussion of the lessons learned in this area in the U.S., with an emphasis on lessons that are relevant to the Israeli legal system, which is first starting out in this field.

Hebrew Item
July 3rd, 2012

This article, by Pinhas Rubin and Daniel Paserman, examines two aspects of the reclassification of transactions under Israeli tax law: its effect on the question of burdens of proof in tax appeals, and its potential effect on third parties, uninvolved in the tax dispute. Due to these repercussions, the authors argue that the reclassification tool should be applied in a restrained manner and in exceptional cases only.

Hebrew Item
June 10th, 2012

Eyal Raz and Yisrael Spero analyze the right of first refusal as used in the corporate realm and interpreted by the Israeli courts, specifically, with regard to the revocability of the right. The authors challenge the Israeli courts' existing legal position, arguing that an offer given within the framework of a right of first refusal does not justify an irrevocable offer mechanism.

The article analyzes the right of first refusal as it used in the corporate realm and as interpreted by the Israeli courts, specifically, with regard to the revocability of the right. Authors Eyal Raz and Yisrael Spero challenge the Israeli courts' existing legal position, arguing that an offer given within the framework of a right of first refusal does not justify an irrevocable offer mechanism, given the right's underlying rationales and its particular attributes.

Hebrew Item
May 22nd, 2012

In the near future, a long list of companies will be coerced into being sold in order to avoid the "pyramid prohibition" and to separate their financial and non-financial holdings.  These forced sales, under less than perfect circumstances, have waylayers rubbing their hands in delight just waiting to purchase the companies for peanuts.  An article by Mr. Pinhas Rubin.

 

Hebrew Item
March 7th, 2012

Dr. Zvi Gabbay describes the hardship imposed on publicly-traded companies in Israel and the consequential costs, which may result in the shifting of costs to the end-consumer. Gabbay also makes reference to the de-regulation trend in America and asserts that the pendulum is now shifting to the de-regulation end, what may seem to many as a counter intuitive reaction to the 2008 financial crisis.

Hebrew Item
February 1st, 2012

"Administrative Enforcement of Israeli Securities Laws," authored by Dr. Zvi Gabbay, analyzes the various administrative enforcement procedures and processes by which the Israel Securities Authority (ISA) operates and employs its enforcement powers. The book reviews three main administrative enforcement procedures: a procedure for casting "simple" financial sanctions, an administrative enforcement process adjudicated by an administrative tribunal and an administrative process enabling regulated entities to resolve their matters with the ISA.

הספר "אכיפה מנהלית ברשות ניירות ערך" הוא הראשון והיחיד בישראל בתחום חדש זה. הספר מנתח לעומק את הליכי האכיפה המנהלית השונים שבאמצעותם מוסמכת רשות ניירות ערך לפעול, כפי שהוסדר בתיקון הגדול ביותר שנעשה לחוק ניירות ערך, התשכ"ח – 1968 מאז חקיקתו – החוק לייעול הליכי אכיפה ברשות ניירות ערך (תיקוני חקיקה), התשע"א – 2011.

 

על החוק החדש נאמר ע"י נשיאת בית המשפט המחוזי בתל אביב השופטת דבורה ברלינר... "כי הוא מאוד מסורבל ולא נוח לשימוש"  גם היועץ המשפטי לשעבר לרשות לניירות ערך עו"ד שוני אלבק התנצל.. "על הסרבול של חוק האכיפה המינהלית, החוק באמת ארוך ומסורבל". הספר בא לעשות סדר באי הסדר הקיים בחוק. מטרתו ליצור כלי פרשני יעיל וברור. המחבר סוקר את כל נוסחיה של הצעת החוק, יד ביד עם דיון מעמיק באינטרסים השונים המתנגשים שלעיתים מעוררים שאלות פרשניות כבדות משקל. המחבר מנתח את הרציונלים השונים שהובילו לניסוח החוק כפי שנוסח, ומביע את דעתו לגבי הכיוון הפרשני הרצוי.

 

הספר סוקר את שלושת הליכי האכיפה המנהליים הקיימים ברשות ניירות ערך: הליך להטלת עיצום כספי "פשוט", הליך אכיפה מנהלי בפני וועדת אכיפה מנהלית והסדר להימנעות מנקיטת הליכים. המדובר בשלושה מסלולים שונים, הנבדלים זה מזה באופיים והשלכותיהם, אשר לאור המגמה הניכרת כיום לעשות שימוש נרחב יותר בסמכויות אכיפה מנהליות כחלופה להליך הפלילי, ניתן לצפות כי השימוש בהם ילך ויגבר בשנים הקרובות. הספר סוקר את הוראות החוק השונות המסדירות את הליכי האכיפה המנהליים ברשות ניירות ערך, מנתח את הרציונלים העומדים בבסיסם ואת ההיסטוריה החקיקתית של כל סעיף וסעיף, במטרה לחשוף את האינטרסים השונים המגולמים בהוראות אלה ולהצביע על כוונת ומגמת המחוקק בחקיקת כל סעיף וסעיף.

 

קשה להניח שדיונים במותבי וועדת האכיפה המנהלית ובבית המשפט אשר יתבקש להפעיל ביקורת שיפוטית על החלטות הוועדה, יערכו מעתה ואילך ללא היעזרות והתייחסות לאמור בספר.

 

על המחבר: ד"ר צבי גבאי כיהן כממונה על האכיפה ברשות ניירות ערך, ובמסגרת תפקידו זה לקח חלק פעיל בתהליך חקיקת החוק לייעול הליכי אכיפה ברשות ניירות ערך. כיום  הנו עורך-דין פעיל, שותף במשרד גורניצקי ושות', ובעל תואר דוקטור למשפטים (JSD) מאוניברסיטת קולומביה בניו-יורק בתחום אלטרנטיבות להליך הפלילי.

Hebrew Item
October 31st, 2011

The purchase of "Supersal" stocks by Mr. Leo Noe prior to signing the document and receiving the control over the company is not necessarily illegal

Hebrew Item
September 18th, 2011

The article, written by Eli Elya, deals with the new amendment to the "Consulting Law", which allows foreign entities to provide consulting services, marketing and investment portfolios management to costumers in Israel without having to issue a license. The article reviews the law's background and its objectives, and wishes to examine and point out problems that might influence the application and success of the amendment.

Hebrew Item
September 12th, 2011

Zvi Ephrat (Senior Partner) says goodbye to the recently departed, Yuli Ofer.

Hebrew Item
August 1st, 2011

Does the social justice atmosphere change the expectation of companies' major shareholders to act more responsibly?

Hebrew Item
May 24th, 2011

For two and a half years Dr. Zvi Gabbay was the Head of Enforcement at the Israel Securities Authority and fought against securities offenders. Now, as the leading corporations advocate, he sees things differently.

Hebrew Item
April 11th, 2011

The role of a board of directors shouldn't end with deliberations regarding refreshments, but should also include decidsions on matters regarding the executives' benefits and the company's transactions.

An article by Mr. Yair Shiloni.

Hebrew Item
January 16th, 2011

Not only will private compnies have to provide information when issuing bonds; they will be required to provide reports throughout the life of the bonds.

 

An article by Mr. Lior Porat and Mr. Meir Levin

Hebrew Item
January 10th, 2018

Daniel Paserman (C.P.A), Head of Tax at Gornitzky, was interviewed by Matthew Kalman of Bloomberg BNA on increased enforcement by the ITA.

 

Daniel Paserman (C.P.A), Head of Tax at Gornitzky, was interviewed by Matthew Kalman of Bloomberg BNA, addressing the increased enforcement by the ITA in relation to income generated by foreign internet companies operating in Israel. For further reading: 

January 10th, 2018

Sarit Naaman Shaag (Senior Associate) in a client update regarding the submission of municipal tax (Arnona) assessment appeals (the deadline for submission is the end of March 2018).

Sarit Naaman Shaag (Senior Associate) in a client update regarding the submission of municipal tax (Arnona) assessment appeals (the deadline for submission is the end of March 2018). For further reading (Hebrew)

December 15th, 2017

Daniel Paserman (CPA), Head of Tax, is quoted in Mathew Kalman's article in Bloomberg Law, in relation to the proposed US tax reform, which may deter foreign investors from investing in Israel. For further reading:

Daniel Paserman (CPA), Head of Tax, is quoted in Mathew Kalman's article in Bloomberg Law, in relation to the proposed US tax reform, which may deter foreign investors from investing in Israel. For further reading:

November 27th, 2017

In an article published in Calcalist, Adv. Sagit Amit-Evan, specializing in international M&A and capital markets, explains the connection between the heightened focus on cyber risks and M&A transactions, reviewing, among others, the intensifying due diligence examinations, potential adjustments to enterprise valuation and changes in risk allocation among the parties. For further reading:

In an article published in Calcalist, Adv. Sagit Amit-Evan, specializing in international M&A and capital markets, explains the connection between the heightened focus on cyber risks and M&A transactions, reviewing, among others, the intensifying due diligence examinations, potential adjustments to enterprise valuation and changes in risk allocation among the parties. For further reading:

November 9th, 2017

Partner Avner Finkelshtein surveys the Antitrust Law reform. For further reading (Hebrew):

Partner Avner Finkelshtein surveys the Antitrust Law reform. For further reading (Hebrew):

November 4th, 2017

Elite Elkon (Partner), Dubi Gross (Partner) and Nir Keidar (Associate) published a client update on Israeli Lending Licensing Requirements for non-institutional lenders - a step towards certainty for international lenders. For further reading: 

Elite Elkon (Partner), Dubi Gross (Partner) and Nir Keidar (Associate) published a client update on Israeli Lending Licensing Requirements for non-institutional lenders - a step towards certainty for international lenders. For further reading: 

October 26th, 2017

A Client Update on Israeli Lending Licensing Requirements– a Step Towards Certainty for International Lenders. 

September 19th, 2017

Daniel Paserman (CPA), Head of Tax, Aviram Handel, Partner, and Assaf Hasson, Associate, in a client update on the relaxation of the requirements for the issuance of Israeli passports. For further reading:

September 7th, 2017

Gornitzky's labor law team in a client update regarding significant recent labor law rulings and legislation.

Gornitzky's labor law team, led by Michael Ayalon, in a client update regarding significant recent labor law rulings and legislation (Hebrew). 

July 18th, 2017

The current issue, fifth in number, includes articles by leading academics and lawyers, including an article by Mr. Gur Yehuda Savir, Mr. Aviram Handel and Mr. Ehud Katzenelson from our firm, titled "Have you bequeathed and benefited taxwise?"

 

For further reading (Hebrew):

June 28th, 2017

Daniel Paserman, Partner and Head of Tax at Gornitzky & Co, together with associate Adi Haya Raban, in an article for The Accountant, on "The Nature of Goods" (Hebrew). 

Daniel Paserman, Partner and Head of Tax at Gornitzky & Co, together with associate Adi Haya Raban, in an article for The Accountant, on "The Nature of Goods". 

May 17th, 2017

Daniel Paserman(CPA), Head of Tax, and Ofer Levy CPA), in an update on Israeli Tax Residency of Individuals: A New Supreme Court Case.

May 3rd, 2017

Daniel Paserman (CPA), Head of Tax, and Ofer Levy (CPA) in an update on how Israeli Banks are Increasing Enforcement of US Estate Tax on Israeli Investors.

Israeli Banks are Increasing Enforcement of US Estate Tax on Israeli Investors

 

US estate tax is imposed on U.S situs assets of a decedent, who is a non-resident, non-citizen of the U.S ("NRA"), including real estate assets in the U.S and certain securities of U.S corporations (unless the estate tax will be repealed as currently suggested). As opposed to US citizens and domiciliaries who are exempt from federal estate tax on estates up to an amount of USD 5,490,000, the NRAs’ exemption amount is merely 60,000 USD. The tax rates on taxable estates can reach up to more than 40% (depending on state estate tax as well).

 

Since many Israeli tax residents invest in US real estate and securities of US corporations, estate tax exposure regarding their US investments may exist. In addition, although an investment in securities of US corporations by NRAs may be exempt from capital gain taxation in the US, such an investment may be subject to US estate tax.

 

Until recently, as a matter of practice, Israeli banks have not enforced the US estate tax liability. However, it seems that a policy change has recently taken place, deriving, inter alia, from the Foreign Account Tax Compliant Act (“FATCA”), which requires Israeli banks to disclose financial information regarding their US clients to the US tax authorities. As a result, Israeli banks have increased enforcement on tax matters, including non-Israeli related tax matters. Recently, several Israeli banks have informed their clients that in order to inherit bank accounts that include US assets, an approval from the US Tax Authority for a tax exemption or payment of taxes may be required.

 

There are in fact several different alternatives for mitigating US estate tax exposure on NRAs’ investments in US real estate and securities of US corporations. Among the various alternatives, we note the use of trusts, life insurance, investing in ADRs and investing through foreign corporations.

 

A relatively simple and inexpensive solution for investing in securities of US corporations is through the use of an Israeli Family Company. An Israeli Family Company is treated for Israeli tax purposes as a ”Transparent Entity” and therefore its taxable income is regarded as the income of the company’s individual shareholder. Notwithstanding, from a US tax perspective, as a default matter, an Israeli family company is regarded as a corporation under “Check the Box” regulations (unless the corporation has elected to be treated differently). Thus, the investment in securities of US corporations will be excluded from the Israeli investor’s estate from a US estate tax perspective, as he holds shares in an Israeli corporation (as opposed to holding securities directly in the US corporations), while for Israeli tax purposes the taxation remains substantially similar, since the taxable income of the Israeli Family Company is attributed to the individual shareholder.

 

For further information please contact Adv. (CPA) Daniel Paserman, Head of Tax (paserman@gornitzky.com).

 

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March 26th, 2017

Gornitzky's labor law team, led by Michael Ayalon, in a client update regarding important labor law verdicts that were issued in the past weeks (Hebrew). 

February 28th, 2017

Daniel Paserman, partner and Head of Tax at Gornitzky & Co, together with associates Danielle Skald and Ofer Levy, in an article for Bloomberg BNA on the changes and trends in Israeli Taxation in 2017

Daniel Paserman, partner and Head of Tax at Gornitzky & Co, together with associates Danielle Skald and Ofer Levy, in an article for Bloomberg BNA on the changes and trends in Israeli Taxation in 2017

February 2nd, 2017

Israel’s two largest banks, Bank Leumi and Bank Hapoalim, are now officially compelled to divest their credit card businesses - Leumi Card and Isracard – and the engines are warming up on these sales

Israel’s two largest banks, Bank Leumi and Bank Hapoalim, are now officially compelled to divest their credit card businesses - Leumi Card and Isracard – and the engines are warming up on these sales.

 

Last week, on January 23rd 2017, the Israeli parliament passed the “Strum Law”1, obligating Israel’s two largest banks, Bank Leumi and Bank Hapoalim, to divest their credit card businesses, namely Leumi Card (80% held by Leumi) and Isracard (99.5% held by Hapoalim). These two payment card companies are the largest players in the Israeli payment card market and dominate approx. 76% of the payment card market in Israel (Isracard circa 50% and Leumi Card circa 26%).

 

According to the Strum Law, in order to enhance competition, large Israeli financial and non-financial institutions and corporations are prohibited from purchasing these payment card companies, which in turn promotes and encourages the entrance of foreign players such as PE funds and foreign financial participants (until now prohibited from doing so) to compete for the acquisition of such businesses.


Bank Leumi and Bank Hapoalim are each required to divest their credit card companies within three years. An additional year is granted if at the end of three years, the credit card company is taken public with a free float of 25% in public hands, and no more than 40% remains held by the bank.
Following the sale, Leumi and Hapoalim will be prohibited from engaging in merchant acquiring (clearing) transactions and from providing credit cards issuance processing (but will be allowed to offer and issue credit cards to their clients, set the rate of card issuance and usage fees and provide credit card holders with credit).The banks will be entitled to acquire clearing and issuance processing services from the credit card companies and will not be allowed to engage exclusively with one credit card company.

 

Credit card companies will be entitled to offer the banks’ clients their own credit cards and the banks will only be allowed to offer the issue of new credit cards to existing clients within 45 days prior to the expiration date of a card (subject to certain exceptions).
Bank Leumi and Bank Hapoalim are required to reduce, within the period of four years, the amount of credit provided through credit cards to 50% of the amount provided by them in 2015 (such limitation will be removed at the end of 2023).

 

The regulator of the credit card companies will be the central bank (Bank of Israel), which has announced significant reliefs to credit card companies and their controlling shareholders, as opposed to the regulatory regime applicable to banks and their controlling shareholders.

 

A key element in these sales that will require close attention on the part of the selling banks will be the commercial arrangements to be put in place with the credit card companies going forward. It is expected that a primary objective of the selling banks will be to secure a long term cooperation agreement with respect to an entire host of issues, including clearing and card issuance processing services to the banks, provision of credit by the banks to the credit card companies, use of information and distribution of cards by the banks. This, no doubt, will add a layer of complexity to the transactions and highlight not only the price but the full package of terms.

 

1 The enhancement of competition and limitation of centralization in the Israeli banking market (Legislative Amendments) Law, 2017

 

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For more details please contact:
Elite Elkon, Partner
elkon@gornitzky.com
office: +972-3-7109545
Mobile: +972-54-4751168


This client update is designed to provide general information only, is not a full or complete analysis of the matters presented, and may not be relied upon as legal advice.

 

January 31st, 2017

Daniel Paserman (Partner, head of tax) and Danielle Skald in an article for Bloomberg BNA on the implementation of Amendment 13

January 3rd, 2017

Gornitzky's labor law team led by Michael Ayalon in a comprehensive review of labor laws including legislative and ruling updates (Hebrew). 

December 5th, 2016

Daniel Paserman (partner) surveys the tax residency of foreign companies in relation to the "control and management" test, recently updated by the ITA.

Recently, following the judgments in the Niagu, Yanko Weiss and Shai Zamarot cases, the Israeli Tax Authority (ITA) further clarified its position as to when a foreign company is considered to be "controlled and managed" from Israel and thus considered an Israeli tax resident.


Background - The "Control and Management" Test
Under the Israeli Tax Ordinance (ITO), a corporate entity is regarded as an Israeli tax resident if: (i) it was incorporated in Israel; or (ii) the control and management of its business are performed in Israel (known as the “control and management” test). While the question of incorporation is a factual question that is simple to determine, the ITO neither defines nor provides any guidance as to what would constitute “control and management” and Israeli courts have interpreted it based on the specific circumstances of the matter brought before them. In the past, upon implementation of the test, courts examined, inter alia, the legal and formal ownership, the location of shareholders’ meetings, and primarily, the location of meetings of the board of directors of the company. Today, as part of the general trend in law to place an emphasis on substance as opposed to form, the tendency is to examine the business – practical aspect of the “control and management”. For this purpose, an examination is conducted as to where and by whom the effective ability is held, to determine the company’s strategy and business policy and to instruct the subordinate ranks as to how the aforesaid policy and strategy should be implemented.


Income Tax Circular No. 4/2002
In 2002, the ITA published Circular 4/2002 (Circular) on the subject of “control and management” that sets the criteria for the implementation of the test. Although circulars published by the ITA are not binding, they provide a "safe harbor" for taxpayers who follow them. The Circular explains that “control and management” is exercised as a matter of fact, which must be examined based on the specific set of circumstances. Furthermore, the Circular provides guiding criteria for the application of the test, including, inter alia: where the decisions are made at the level of the business policy and the strategic management, the authorized entity which actually controls and manages the day-to-day and current management, the organ of the company that is granted extensive discretion to reach decisions, etc. The Circular emphasizes that in the past, great weight was given to the physical location of the convening of the board of directors, however, at the present time, given the current progress and the ever-increasing sophistication of means of communication and transport, the actual physical location of the convening of the board of directors is deemed to be an insufficient and out-of-date parameter.


Addendum No. 1 to Income Tax Circular No. 4/2002
In August 2016, the ITA published an addendum to the Circular (Addendum). The Addendum was published following the said judgments, in which the “control and management” test was reconsidered. This came about following a period of many years in which no judgments were published concerning the matter. The Addendum continues with the direction that was established in the original Circular, emphasizing substance rather than form and provides more details as to the various criteria. The Addendum states that a formal and technical examination is insufficient, and it is necessary to conduct a material and comprehensive examination for the purpose of determining the question of the existence of “control and management”. As indicated by the Addendum, it is necessary to determine the decision-making party (the driving force) that navigates the company’s operations and actually makes the material decisions in the matters of the Company’s business policy, and the location thereof.
The Addendum also instructs that protocols are to be requested for the purpose of examining whether in fact the board meetings were held or whether a "rubber stamp" was merely used for the decisions of another party. Additionally, it is necessary to consider the experience of the directors, their understanding of the activities of the company, whether they are employed by a professional management company that provides services to additional companies, what their compensation is and who determines it, whether they are fluent in the language in which the company conducts its activities, etc.
Following the new judgments and the Addendum, we notice that in practice, the Israeli Tax Authority has strengthened its examination of the matter of "control and management" of foreign companies held by Israeli shareholders, and in many cases claims that these companies should be viewed as Israeli tax residents since their control and management is carried out from Israel.

 

For further information please contact Adv. (CPA) Daniel Paserman, Head of Tax (paserman@gornitzky.com).

 

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This client update is designed to provide general information only, is not a full or complete analysis of the matters presented, and may not be relied upon as legal advice.

November 8th, 2016

Regulators are imposing new cybersecurity requirements on financial institutions. Partner Timor Belan together with associates Assaf Harel and Shira Plotnik explain how this may affect the financial sector. 

In response to the increasing cybersecurity threats to the financial sector and considering the grave risks associated with such threats, regulators have introduced new cybersecurity requirements aimed at improving the protection of companies in the financial sector from such risks. This Client Update discusses two recent cybersecurity regulations that will affect financial institutions operating in the State of New York or in Israel – the proposed New York State Department of Financial Services (NYDFS) Cybersecurity Requirements for Financial Services Companies (the “Proposed Regulation”) and the Directive on the Management of Cyber Risks, published by the Israeli Ministry of Finance (the “Israeli Directive”). This Client Update also addresses guidelines recently issued by the Group of Seven Industrial Powers (“G-7”).

 

On September 13, 2016, the NYDFS published the Proposed Regulation which requires financial institutions (such as banks and insurance companies) regulated by the NYDFS, to implement a number of measures to protect their systems from misuse, disruption and unauthorized access. Such measures include, inter alia, establishing and maintaining a cybersecurity program; adopting a cybersecurity policy which is to be reviewed on an annual basis by the board of directors and approved by a senior officer of such financial institution; appointing a chief information security officer who will be responsible for implementing and enforcing the cybersecurity program; adopting and implementing policies for interactions with third parties (including the requirement of certain cyber-related representations and warranties from such third parties); and preparing a response and recovery plan for cybersecurity events.

Furthermore, the Proposed Regulation requires financial institutions to notify the superintendent of the NYDFS of cybersecurity events no later than 72 hours after becoming aware of the event, and to submit a certificate confirming compliance with the requirements under the Proposed Regulations to the superintendent on an annual basis.

 

Israel’s financial regulators have also taken important steps to promote cyber readiness and resilience among companies operating in the Israeli financial sector. On August 31, 2016, following the March 2015 publication of the Bank of Israel’s cybersecurity requirements applicable to banks and credit card companies, the Director of the Capital Market, Insurance and Savings Department in the Ministry of Finance of Israel issued the Israeli Directive, which applies to other financial institutions (such as insurance companies and companies managing provident funds and pension funds). The Israeli Directive imposes new requirements which are intended to promote the confidentiality, integrity and availability of sensitive information stored by such financial institutions, and to protect the proper function of their computer systems.

 

The Israeli Directive requires financial institutions to adopt a cybersecurity program and a policy which is to be approved by the board of directors on an annual basis; appoint a cybersecurity officer, who will oversee the cybersecurity program, implement a cybersecurity policy and guide the institution on cybersecurity in general; and to provide cybersecurity training to employees. Although the Israeli Directive requires financial institutions to notify the Ministry of Finance of cybersecurity events, in contrast to the NYDFS Proposed Regulation, it does not define a clear time frame for such notifications, but only states that such notifications shall be given “as soon as possible”. The Israeli Directive also stipulates that the CEO of the financial institution shall be responsible for the management of the institution’s cybersecurity risks and for allocating the proper resources in this regard.

 

Efforts to promote cybersecurity in the financial sector have also been made on an international level. On October 11, 2016, the G-7 issued a set of nonbinding cybersecurity guidelines to promote cybersecurity best practices in the financial sector (titled G-7 Fundamental Elements of Cybersecurity for the Financial Sector). Such guidelines are intended to assist financial private and public entities in developing and shaping their cybersecurity strategy, in order to address the growing number of cyber threats. The G-7 guidelines consist of eight elements: establishing a cybersecurity strategy and framework; governance setting; conducting risk and control assessment; establishing monitoring processes; implementing response policies; establishing recovery plans; information sharing with internal and external stakeholders; and continuous learning.

 

The NYDFS Proposed Regulation is open for public comments until November 12, 2016. If adopted in its current proposed form, it would become effective on January 1, 2017. The Israeli Directive will become effective in Israel on April 2, 2017.

 

Gornitzky’s Cyber-Security, Privacy and Data Protection team offers clients a well-rounded multidisciplinary approach to navigating the emerging regulatory and legal frameworks in the field of cyber security, privacy and data protection.

 

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For further information please contact: Timor Belan (Partner) (timorb@gornitzky.com), Assaf Harel (assafh@gornitzky.com) or Shira Plotnik (shirapl@Gornitzky.com)

* This client update is designed to provide general information only, is not a full or complete analysis of the matters presented, and may not be relied upon as legal advice.

September 20th, 2016

An Update regarding the draft bill, published by the ITA, on the reportable tax acts, which for the first time, proposes to include a list of acts relating to trusts, by Daniel Paserman (Partner).

In 2006, special regulations were enacted, providing an exhaustive list of tax planning acts that must be reported to the Israel Tax Authority (Reportable Acts). These Reportable Acts include, inter alia, the sale of property to a “relative” that creates a deductible loss for the seller, waiving the debt of a “relative”, acquisition of a company with carryforward losses and others, all in accordance with the conditions prescribed in the regulations. These Reportable Acts, including the parties involved and the amounts that were paid, are to be reported using a special form attached to the annual tax return. Failure to report is a criminal offense. Moreover, in a situation where a Reportable Act creates a tax shortfall in a final assessment exceeding 50% of the tax liability, a deficiency fine of up to 30% of the shortfall may be levied.

 

Recently, a draft bill was published to amend the regulations in respect of acts from 2017 onwards, and for the first time, the Tax Authority proposes to include a list of acts relating to trusts. It seems that the initiative to include acts related to the trusts was born inter alia in the wake of the amendment to the Israeli Income Tax Ordinance, which came into force in 2014. This amendment expands the Israeli tax basis regarding trusts, and eliminates certain exemptions and reliefs. Inter alia, the amendment stipulates that in circumstances where there is an Israeli beneficiary in a trust, the trust will be subject to tax and reporting in Israel, even if the settlor is a foreign resident. Consequently, Following these legislative amendments, many trusts were modified. With this regard, Israeli beneficiaries have been excluded from foreign trusts that were created by foreign residents. In order to trace these changes and deter trustees and beneficiaries from taking such actions, the Tax Authority now also seeks to amend the regulations and apply them to certain acts relating to trusts. Reportable Tax Acts in relation to Trusts.

 

Below is a summary of acts that will be considered Reportable Acts according to the proposed amended regulations:

1. An Israeli resident that was a beneficiary of a trust and was excluded therefrom, received a loan or an asset from someone who was or is still a trustee or beneficiary in the trust, free of charge, and the person transferring the asset or granting the loan was a foreign resident at any time between the exclusion date and the date of the Reportable Act.

2. An Israeli resident beneficiary received a loan from the trust or, alternatively, a trust asset served as collateral for a loan taken by the beneficiary.

3. Abeneficiary provides management or consulting services to the trust or to companies held by the trust; acts in a managerial position of a company or an enterprise held by the trust or is part of the trust’s investment committee or holds another administrative role in the trust.

4. The exclusion of an Israeli resident from being a beneficiary in a trust, whereas, if there was no exclusion, the trust would have been taxable in Israel.

 

The said Reportable Acts will require notification to the Tax Authority in Israel when filing the annual tax return, either by the beneficiary or the trustee, as determined in the regulations. It is important to emphasize that at this stage this is only an initial draft of of the amended regulations.

 

For further information please contact Adv. (CPA) Daniel Paserman, Head of Tax (paserman@gornitzky.com).


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This brief memorandum provides general information and does not constitute or substitute any legal advice. As these issues are complex and of a circumstantial nature, which involve different tax and legal aspects, each case should be examined according to its individual circumstances.

August 24th, 2016

A summary of the suggested international tax amendments proposed by the Israeli government as part of the new budget proposal for the year 2017-2018, by Daniel Paserman (Partner) and Inbar Barak-Bilu.

As part of the approval of Israel's budget for the years 2017-2018, the Israeli Tax Authority ("ITA") published an initial draft of its proposed legislative tax initiatives at the beginning of August. A revised draft was approved by the government cabinet on August 12, 2016, and it is expected that the legislative bill will be published within several weeks and brought to the approval of the Israeli parliament. As always, the proposed new budget includes a number of changes and reforms in the Israeli international tax regime. Below is a brief summary of the main suggested amendments (the "Amendment").

 

  • Tax Residency of Foreign Companies

Under Israeli tax law, a company is considered an “Israeli resident” for tax purposes if one of the following applies: (i) the company was incorporated in Israel, or (ii) the "control and management" of the company was carried out in Israel. However, there is no definition of the term "control and management" in the tax legislation and Israeli courts also tend to interpret it in accordance with the specific circumstances of each matter, and thus there are no clear and definitive rules to apply this criteria.
The Amendment offers a rebuttable presumption, according to which a company that was incorporated outside of Israel shall still be considered as an Israeli resident for tax purposes if the company is controlled by Israeli residents and the effective tax rate imposed on the company is 15% or less, and one of the following conditions takes place: (i) the company is a resident of a country that does not have a tax treaty with Israel; or (ii) the company is a resident of any other country that applies the territorial tax system, that is, it does not levy tax on income derived outside of it. In case such a foreign company does not consider itself an Israeli resident for tax purposes despite the existence of the presumption, it is still obliged to report its position in Israel.

  • “New Immigrants” and “Veteran Returning Residents”

Since 2007, "New Residents" and "Veteran Returning Residents" are exempt from Israeli tax and reporting with respect to foreign source income and assets during a period of 10 years, commencing on the date the individual became an Israeli tax resident.
In the initial legislative draft of the ITA it was suggested to abolish the exemption from reporting, starting January 1, 2017. In addition, it was suggested to cancel the possibility of extending the exemption period for an additional 10 years. At the end, this item was not approved by the cabinet and therefore the current legislation will remain unchanged.

  • Reporting Requirements of International Groups

Following Action 13 of the BEPS report (Guidance on the Implementation of Transfer
Pricing Documentation and Country-by-Country Reporting), it is proposed in the Amendment to impose an obligation on companies that are part of an international group and operate in Israel to report to the Israeli tax authorities. The Amendment suggests issuing regulations that shall specify the documents and information that should be submitted, including, in certain circumstances, in respect of the foreign activities of the group in other jurisdictions.

  • CFC Rules

Controlled Foreign Corporation (CFC) rules, applicable in Israel today, provide, under certain conditions, that passive income of a foreign resident entity controlled by Israeli residents is considered as “deemed dividend” distributed to the Israeli shareholders. The current rules stipulate that income derived from interest, linkage differences, royalties and rent will not be considered passive income if they originate from a business.
The Amendment suggests setting a rebuttable presumption that income derived from interest, linkage differences, royalties and rent shall be regarded as passive income for CFC purposes, even if it was derived from a business.

  • Tax Exemption for Foreign Investors

Under Israeli tax law, the Minister of Finance has the authority to provide tax reliefs to foreign tax residents in case they cannot receive a tax credit in their home country. This authority is usually used in case of venture capital investments.
It is suggested in the Amendment to authorize the Minister of Finance to provide tax exemptions in these circumstances and thus simplify the current mechanism.

  • Encouragement of Capital Investments

The encouragement of Capital Law grants tax benefits to preferred enterprises, including reduced corporate tax rate of 16% and 9% (instead of 25%) and reduced withholding tax rate of 20% on dividends (instead of 25% or 30%).
The Amendment, which will apply to technology companies, includes new incentives intended, inter alia, to encourage foreign investors to invest in the Israeli high-tech industry. These incentives include, inter alia, a reduced corporate tax rate of 12% and 6%, and 4% withholding tax rate on dividends.

 

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For further information please contact Adv. (CPA) Daniel Paserman, Head of Tax (paserman@gornitzky.com) or Adv. (CPA) inbar Barak-Bilu (inbarb@gornitzky.com) at Gornitzky & Co., +972-3-7109191.

This brief memorandum provides general information and does not constitute or substitute any legal advice. As these issues are complex and of a circumstantial nature, which involve different tax and legal aspects, each case should be examined according to its individual circumstances.

August 4th, 2016

Timor Belan (Partner) and Assaf Harel regarding the need of new and updated cyber regulations and privacy laws.

The rise in the use of technologies that collect our personal data on a widespread and regular basis, combined with an increase in cyber-attacks on entities that collect and store such data are creating a significant threat to individual privacy worldwide. As a result, countries around the world have responded by updating their cyber regulations and privacy laws. While Israel is a global front-runner in the development of defensive cyber technologies, its legal framework pertaining to the protection of personal data appears to be outdated and insufficient in addressing contemporary threats to data privacy.

 

Israel’s regulatory efforts in the area of cyber-security, in the last couple of years, have been focused on two main objectives – (1) regulating cyber-security within governmental entities or regulated entities; and (2) regulating the provision of cyber-security services and products.
The Government of Israel has been working to promote cyber-resilience in the public sector. Government Resolution No. 2443, dated February 15, 2015, aims to do so by forming a new governmental cyber authority, allocating a cyber-security budget and imposing new cyber-related requirements on Government offices. In this context, the Government is working to establish a national CERT (Cyber Event Readiness Team), which will provide cyber-related support and guidance to entities in both the public and private sectors, as well as a Security Operations Center (SOC), which will be an intelligence-based entity focusing mainly on the protection of Government offices. Simultaneously, various Government regulators have been imposing cyber-related obligations on a growing group of regulated entities. For example, in September 2015 the Supervisor of the Banks issued a cyber-security directive to banks and credit card companies. The Director of the Capital Market, Insurance and Savings Department in the Ministry of Finance is currently working on a similar directive targeting financial institutions. However, the impact of such directives is currently limited only to a few specific regulated sectors.

 

The Government is also taking steps to regulate the local cyber-security market. Government Resolution No. 2443 set new standards for cyber professionals, their training and certification as well as the testing and approval of cyber products. Pursuant to Resolution No. 2443, in December 2015, the National Cyber Bureau published a policy paper on the regulation of cyber-security professions. This policy sets out a list of regulated professions, the professional knowledge and qualifications required under the various professions and the mechanism for implementing and enforcing such requirements (however, implementation of this policy would appear to require legislation). A proposed order relating to the export of cyber-security products was also published in the same month, with the goal of expanding the supervision on the export of cyber products from Israel. However, pursuant to the criticism voiced on the matter, especially from the local cyber industry, this initiative was abandoned and Israel is likely to continue to apply, with respect to such exports, the provisions of the Wassenaar Arrangement, which reflect the international standards with respect to the export of dual-use products.

 

Although, as mentioned above, Israeli regulators are working to promote cyber-security in the public sector and to set ground rules for the local cyber industry, Israel appears to be far behind other countries when it comes to the protection of its residents from data privacy risks. The main Israeli law that addresses this area is the Protection of Privacy Law, enacted in 1981 (the “Privacy Law”). This law reflects an outdated concept that data privacy may be protected by requiring organizations that store personal data to register their “databases” with the government, a technical process under which the organization is required to provide a few general details on the database, its intended use and the types of data it contains. The Privacy Law does not impose substantial duties on the controllers of such databases with respect to ensuring that personal data in such registered databases is protected. The protection of personal data in such registered databases is practically limited to a right of such individuals to be informed that providing information is subject to their consent and a right to review such information and a right to demand correction of inaccuracies.

 

Clearly, the Privacy Law was not meant to deal with today’s data-saturated reality, where every online store may hold personal information of tens or even hundreds of thousands of civilians. More specifically, the existing legal framework lacks basic elements that exist in modern data privacy laws in other countries, such as the requirement to inform the data subject and the relevant authorities in the event of a data breach or the setting of minimum data security standards that every controller of personal data would have to adhere to (the Privacy Law only provides a general statement that the owner, controller and manager of a database are responsible for protecting the data stored in such database).

Given the deficiencies described above, Israeli legislators and regulators should formulate a new legal framework consistent with the emerging international standards in the field of protection of data privacy and cyber-security. First, Israeli regulators should extend the list of public bodies or supervised bodies on which cyber-security duties have been imposed so far. Following the financial institutions, one can assume that the regulators will act to impose such requirements on medical institutions, local government and other public or semi-public entities. Additionally, it is safe to assume that the Israel Securities Authority (ISA) will also publish detailed cyber-security guidelines applicable to fund managers, portfolio management companies and other entities governed by it (so far the ISA has provided only general guidelines on the subject).

 

Second, Israel needs to significantly strengthen its legal framework pertaining to the protection of privacy in order to meet the evolving international standards in this area. It should compel companies that collect personal data to obtain explicit consent, from the data subject, to hold and use such information. Additionally, in cases of data breaches, companies should be required, within a reasonable time, to inform an authorized authority (for example, the authority of Law and Technology at the Ministry of Justice or Israeli Police) of data breaches that compromise personal data, as well as to notify the affected individuals when such breach could significantly harm them. Crafting this new legal framework is not merely a technical process; it also requires ethical and policy decisions to be made on the role of privacy and the proper balance between the right to privacy and other competing rights. Different countries hold different views as to how this balancing test should be applied. As part of this process, the Israeli legislator will further need to consider where she stands on legal concepts that have evolved in recent years, such as the “right to be forgotten” and the requirement of “privacy by design”. It is probable that if the legislature and local regulators do not act on their own initiative to formulate an updated legal framework addressing those issues, certain legal requirements may be imposed on Israel from outside (for example, in restrictions other countries impose on transferring personal data to Israel), and this may result in regulations that would not necessarily reflect the views of the Israeli legislator.

 

Concurrently with the imposition of new cyber-security and privacy-related requirements, the Government should also create incentives for sharing information, among companies, on cyber-attacks, and should further devote resources to educating the public on cyber-security and privacy related threats and on measures to mitigate such threats. Israel, a country with leading innovation in the field of cyber-security, can certainly become a global leader in privacy and cyber-related laws. Adopting a new legal framework in these areas, as described above, would be an important step towards promoting that goal.


Adv. Timor Belan (partner) and Adv. Assaf Harel lead Gornitzky & Co.’s Cyber Security, Privacy and

Data Protection Privacy practice.

July 21st, 2016

Partner Daniel Paserman (Adv., CPA.) in an article surveying the taxation of trusts in Israel, following the recent legislative amendments. 

May 9th, 2016

As part of a trend to make it easier to do business in Israel, the Israeli government recently adopted amendments to regulations under the Israeli Companies Law - By Partners Chaim Friedland and Ari fried.

Recent Amendments to Companies Law Regulations
Make Doing Business in Israel More Friendly

 

As part of a trend to make it easier to do business in Israel, the Israeli government recently adopted amendments to regulations under the Israeli Companies Law.

 

Israeli companies whose shares are listed for trading on Nasdaq or the NYSE can now, subject to certain conditions, opt out from the Israeli Companies Law requirements to appoint “external directors” and the rules regarding the composition of its audit committee and compensation committee. Opting out would also relieve the company from the Israeli Companies Law restrictions regarding who can participate in meetings of the audit committee and compensation committee, limitations on directors’ compensation and other matters. In order to opt out, the company cannot have a controlling shareholder, as defined under Israeli law, and must comply with U.S. rules (including NYSE/Nasdaq rules) applicable to domestic U.S. companies with respect to the appointment of independent directors and the composition of the audit and compensation committees. The amendment is based upon the principle that Israeli public companies should not be subject to additional burdens if the laws of the country where its securities are listed for trading provide adequate protections to investors.

 

In addition, commencing May 17, 2016, companies will be permitted to file their articles of association and documents creating security interests in English with the Israeli Registrar of Companies. The English document must be accompanied by a convenience translation in Hebrew.


For further information on these developments, please feel free to contact:

 

Chaim Friedland, Partner Ari Fried,  Partner

 

This publication is provided for general information purposes only. It is not, and does not attempt to be comprehensive in nature. It should not be regarded as legal or other advice.


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April 18th, 2016

Update regarding the New Israeli Voluntary Disclosure Program by Adv. Daniel Paserman (CPA)

  • On September 7, 2014, the Israel Tax Authority ("ITA") launched a voluntary disclosure program (the "VDP") to grant non-compliant taxpayers the opportunity to voluntarily disclose their previously unreported tax affairs in exchange for the ITA (in collaboration with the State Attorney) undertaking not to initiate criminal proceedings. The VDP applies to undisclosed income and assets, whether in Israel or abroad, passive or active.
  • Until 30 June, 2016, voluntary disclosure applications under the VDP may be made under one of the following two paths: (i) an anonymous application; and (ii) a short application, as follows:
  • Under the anonymous application path, the disclosure is submitted on a no-name basis and the identity of the taxpayer is disclosed only after a tax agreement has been reached with the ITA to settle the outstanding tax liability.
  • Under the short application path, the disclosure is handled under an expedited settlement process, and allows taxpayers to submit revised tax returns. The short application path is available only to taxpayers whose undisclosed capital does not exceed NIS 2 million and whose aggregate undisclosed taxable income does not exceed NIS 0.5 million.
  • Following 30 June, 2016 and until 31 December, 2016, all voluntary disclosure applications are to be made on a fully named basis, without expedited treatment.
  • The ITA may extend the anonymous path and the short path until 31 December, 2016.

 

Tax Liability for the Purposes of the VDP

 

  • Based on our experience, the tax liability to be imposed under a voluntary disclosure application will generally be composed of the following elements:
  • Taxation at the prevailing rates on financial income (i.e. income from interest, dividends and capital gains) gained in the last ten years.
  • Taxation at the prevailing tax rates for new deposits of funds not supported by sufficient documentation. Without providing a satisfactory explanation regarding the source of the funds, it is presumed that the funds constitute business income and taxable at the full applicable tax rates.
  • In general, the ITA will impose a further tax on the value or balance of the capital at the beginning of the reporting period of the voluntary disclosure application, at a tax rate in the range of 10%-15% of the capital amount, which is in addition to the taxation of the gains and profits made during the ten year reporting period of the voluntary disclosure application. In the event that a taxpayer can provide satisfactory documentation to demonstrate that the source of the capital at the beginning of the reporting period of the voluntary disclosure application is exempt from tax (e.g. inheritance or gift), the taxation on such capital is likely to be reduced. In cases where such capital is derived from business activity, the applicable tax rate may be higher.


VDP Now Available to the Diamond Industry

 

  • Until recently, the ITA did not handle voluntary disclosure applications by diamond dealers due to the complex nature of the taxation framework of the diamond industry.
  • However, following efforts made by both the Israel Diamond Exchange and the Israel Diamond Manufacturers Association (represented by our firm), participants of the diamond industry may now submit voluntary disclosure applications under the VDP.
  • We note that the diamond industry is still currently negotiating with the ITA to establish industry-wide principles regarding the treatment of the unreported tax affairs for the participants in the diamond industry.

 

For more information please click here to see our memorandum from September 2014. 

 

For further information and advice please contact Adv. (CPA) Daniel Paserman (paserman@gornitzky.com) or Adv. (CPA) Inbar Barak-Bilu (inbarb@gornitzky.com) at Gornitzky & Co., +972-3-7109191.

 


This brief memorandum provides general information and does not constitute or substitute any legal advice. As these issues are complex and of a circumstantial nature, which involve different tax and legal aspects, each case should be examined according to its individual circumstances.


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February 4th, 2016

Adv. Michael Ayalon (Partner) discusses in "The Marker" magazine the new amendments to the Supervision of Financial Services (Provident Fund) law and its significant implications for both employers and employees.

Adv. Michael Ayalon (Partner)head of labor law Practice, discusses in "The Marker" magazine the new amendments to the Supervision of Financial Services (Provident Fund) law and its significant implications for both employers and employees.


Read full article (Hebrew)

December 8th, 2015

Jack Smith (partner), in an article published in Globes magazine, offered 52 reasons, corresponding to the 52 exploration licenses, with favorable terms, that Iran has announced it will issue, as to why the State of Israel needs the Gas Framework: “In light of Iranian policy, which is both practical and experienced in the energy field, there are grounds to expect, from at least a portion of the Gas Framework’s leading detractors, a bit of intellectual honesty,” said Adv. Smith, and added: “to be clear, if Iranian policy succeeds, and multi-national companies flock to Iran where they are promised favorable terms, these companies will not come to Israel due to constraints which the Iranians will impose on

them.”

(Hebrew)

December 1st, 2015

Partners Elite Elkon covered the new Israeli regulator of banking activities and the new steps taken to enhance competition in the credit card business 

September 8th, 2015

Partner Jack Smith was featured in an article in "Globes" regarding the discovery of an offshore natural gas field in Egypt and its potential implications on Leviathan gas field. Read the full story: 

Hebrew Item
February 26th, 2015

In their article published in Missim (Feb. 2015), Gil Grady, Molly Kelner and Shlomo Aviad Zider address the issue recognition of losses incurred by an individual taxpayer when realizing securities denominated in or linked to a foreign currency during a period when the foreign currency has decreased in value. The article discusses various approaches to interpreting the provisions of the Income Tax Ordinance on this matter.

Hebrew Item
September 17th, 2014

In their article on the the new Israeli voluntary disclosure program , Daniel Paserman and Yoav Kremer give an overview of the main criteria and the guidelines of the new program.  The program, which was launched on September 7, 2014, enables non-compliant taxpayers to come forward and arrange their reporting and tax obligations in exchange for which the Israel Tax Authority undertakes not to initiate any criminal proceedings against such taxpayers.


May 4th, 2014

In his article published in the American Lawyer magazine, Jack Smith covers the new regulatory developments initiated by the Israeli government and their effects on the gas and electricity sectors in Israel.

March 21st, 2014

In his article, Avner Finkelshtein writes about the negative effects of price control on competition. He argues that price control can lead to situations where competitors adopt the maximum price allowed and in doing so create a uniform market price. In essence, he believes that price control creates a cartel sanctioned by the law.

Hebrew Item
January 17th, 2014

In his article "Supersol Conviction: the Dam Has Been Broken," Adv. Avner Finkelshtein analyzes the precedential (criminal) conviction of Supersol of an attempted restrictive arrangement between a wholesaler and retailer. In his survey of the ruling, Avner criticizes the Court for not distinguishing between vertical agreements and horizontal agreements, and covers the legal prohibitions regarding a vertical arrangement.

Hebrew Item
June 17th, 2013

In his article "Key Questions: Gifting an Apartment to Children," Adv. Aviram Handel analyzes the implications on both parents and children when parents gift an apartment to their children.  The author proposes alternatives to the "immediate gifting" model.

Hebrew Item
July 30th, 2012

While Mr. Pinhas Rubin finds that Israel's government has been fickle, chaotic and void of any systematic thinking, he believes that the recent tax raises – at their core – are a necessity. Despite the harm it will cause, specifically to the middle and lower classes, he believes this is a quick and effective tax solution – an important point to consider in times of economic crisis.

Hebrew Item
July 1st, 2012

Dr. Zvi Gabbay analyses the first decision rendered by the newly established Administrative Tribunal, which hears enforcement cases brought by the Israel Securities Authority (ISA), in which the Tribunal criticized the ISA for entering into a settlement with defendants that were not required to admit to the facts alleged in the settlement. The author demonstrates the appropriateness of such settlements and their pragmatic advantages, in light of the SEC's policy in these situations and US District Court Judge Rakoff's criticism of "neither admit nor deny" settlements.

Hebrew Item
June 10th, 2012

Current regulation of publicly-traded companies is extremely cumbersome, especially for smaller companies, thus imposing enormous costs and creating significant barriers on the ability of such companies to raise capital. Following the recently enacted American CROWDFUND Act and JOBS Act, authors Dr. Zvi Gabbay (Partner) and Yoav Meer call for the adoption of similar measures by the Israeli legislature.

Current regulation of publicly-traded companies is extremely cumbersome, especially for smaller companies, thus imposing enormous costs and creating significant barriers on the ability of such companies to raise capital. Following the recently enacted American CROWDFUND Act and JOBS Act, authors Dr. Zvi Gabbay (Partner) and Yoav Meer call for the adoption of similar measures by the Israeli legislature, including allowing certain companies to raise money through crowdfunding (without considering such action a "public offering") and by providing regulatory exemptions to emerging growth companies and mini-offerings.

Hebrew Item
March 28th, 2012

Rani Haj-Yahia wonders, at a time where there is heightened discussion over concentrated markets, whether such discussion will ever include the Arab business sector. In his article, the author discusses the existence of two separate economies in Israel, calling for a solution that begins with taking responsibility.

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Hebrew Item
February 16th, 2012

The media spin of the new "Haircuts" bill has gained momentum, however if the bill is passed, it will become an unnecessary law. The law does not cause much harm, but what is the purpose of passing such laws? An article by Mr. Pinhas Rubin.

Hebrew Item
December 29th, 2011

Years have passed since the Supreme Court revealed that Yitzhak Shamir, Israel's former arch-conservative Prime Minister, endorsed one of the greatest revolutions the Israeli legal world has known. An article by Mr. Moriel Matalon.

Hebrew Item
October 23rd, 2011

Mr. Pinhas Rubin analyzes possible implications of the expected recommendations of the Committee to Increase Competitiveness in the Economy

Hebrew Item
September 13th, 2011

A decision regarding the investigation of justice Yoram Danzinger must be made and better sooner than later.

Hebrew Item
August 29th, 2011

The section prohibiting compensation and insurance of adminstrative enforcement proceedings is vastly critisized and needs to be amended.

Hebrew Item
June 2nd, 2011

Although there are repeating opinions to empower the liability of the gatekeepers - underwriters, lawyers and accountants, a recent ruling given by the Israeli Supreme Court in the matter of "Trade Bank" seams to be doing the opposite and limits those liabilities.

 

An article by Dr. Yael Aridor Bar-Ilan

Hebrew Item
May 4th, 2011

The Companies Law amendment allows public company to cancel transactions without the cancelation will be considered as a violation. An article by Sharon Werker-Sagy (Partner) and Dr. Zvi Gabbay (Partner).

Hebrew Item
January 25th, 2011

The Israeli Supreme Court overruled, with the parties agreement, the ruling that cast a large shadow over the possibilty of leveraged buyots. An article by Mr. Pinhas Rubin.

Hebrew Item
January 3rd, 2011

The question was simple: "what is your Ideal court?" five advocates from different practices, among them Moriel Matatlon, the Managing Partner with Gornitzky & CO.

Hebrew Item