Tax Bulletin - August 2016| Extension of Israeli Voluntary Disclosure Procedure & Inclusion of Tax Offences in Prohibition on Money Laundering Law
The Extension of the Voluntary Disclosure Procedure
- 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.
The Inclusion of Tax Offences in Prohibition on Money Laundering 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.
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.