Israel Tax Authority will exercise powers to force company owners to distribute dividends so they can be taxed at the full marginal rate.
“It’s important. I think they will increase the pressure and start using the section effectively because it gives them a lot of power. They will go over the tax returns of all these private companies and they will see which have accumulated profits and they will start applying the section.”
Daniel Paserman (CPA), Head of Tax at our firm, was interviewed by Matthew Kalman for Bloomberg Tax regarding the new targets of ITA – tax-avoiding private holding companies.