June 15, 2016
On September 21, 2015, the ITA announced that the two temporary provisions of the Israeli Voluntary Disclosure Programs (the Anonymous Track and the Fast Track) will end this month, June 30, 2016.
Today, at the annual Israel STEP conference in Tel-Aviv, Mr. Moshe Asher, the Israeli Tax Commissioner, announced that the deadline for these provisions has been extended until the end of 2016.
1.The Anonymous Track- this track enables the taxpayer to come forward anonymously in order to check out the tax liability and upon which the taxpayer has a limited time frame to expose his name and his full details in order to participate in the program.
2.The Fast Track-when the total unreported capital included in the voluntary request does not exceed NIS 2,000,000 and the unreported income derived from it does not exceed NIS 500,000, the taxpayer can submit his request using this “Fast Track” together with his amended returns. If the request is approved, the taxpayer will receive a payment voucher. Once this voucher is fully paid by the time limit indicated on it, the taxpayer will receive notification stating that no criminal investigation will be opened regarding the information he had disclosed.
Taxpayers who are not interested or cannot apply to the above tracks can still come forward through the main Voluntary Disclosure Program which does not expire until December 31, 2016.
In the event that all conditions of the program are met, which includes a voluntary disclosure made out of good faith effort, the taxpayer can disclose the unreported income, and pay the taxes due. In return the Israel Tax Authority, with the approval of the Criminal State Attorney, will not recommend criminal prosecution against these taxpayers. Therefore it is highly recommending to utilize this “window of opportunity” to come forward before an investigation is initiated and this opportunity is lost.
The content of this article is intended to provide a general guide to the subject matter and is not a substitute for legal consultation. Specific legal advice should be sought in accordance with the particular circumstances.