In regular circumstances, a company is treated as a seperate entity for tax purposes; in much the same way that it is treated separately for legal purposes. However, there is the option – under certain circumstances – for the income to be taxed directly in the hands of the shareholder. The first of these cases is the “Family Company,” the חברה משפחתית. There were fairly significant changes to these rules that came into effect as of 1st August 2013, and what follows are the new rules which apply to companies setting up after that date. A company can only be considered a Family Company

Yesterday (7th September 2014), the Israeli tax authority finally published their long-awaited and anticipated Voluntary Disclosure scheme. Anyone who has committed a tax felony, be it related to Income Tax, VAT, Mas Shevach (Land Appreciation Tax) or Customs, can now come forward, report the income, pay the tax (including all interest and fines), and – provided they meet the other criteria – get immunity from criminal prosecution. The immunity from prosecution is dependent on the taxpayer meeting a number of criteria. In general, these require that a full and thorough disclosure be given. Furthermore, it is a requirement that the taxpayer cooperates fully with