As we described in an earlier post (see here), certain deductions can be claimed, even if they are not direct business expenses. This post will look at some of these in greater detail.
The deduction works in different ways for Income Tax and Bituach Leumi purposes:
(1) Income Tax – purely on a cash basis, so any prior-year amendments will be included as well. As such, you could end up having received a net refund – so the 52% is then added to your income (as you previously took a deduction).
(2) Bituach Leumi – this is done on an accruals basis i.e. what you were supposed to have paid taxes on. As such, amendments for prior years get taken into account in those previous periods.
With the 2013 tax year drawing to a close, you should consider whether you can benefit from topping up payments to any of the