The default position (except for the Family Trust, as mentioned here) is that the trust itself is liable to pay the taxes on the trust income. It is the trustee who is required to file the tax returns and who is responsible for ensuring that the taxes are actually paid. The rates of tax applicable are the highest rates applicable to individuals, i.e. 48% plus the 2% surtax for total taxable incomes above NIS 811,560 (2014). That being said, the tax rate is also limited on certain passive incomes in the same way as for an individual, e.g. 25% on most interest, dividends

Last night, the accountant world of Israel got together to review the Voluntary Disclosure procedure after the first eight months of the new system being in place. The facility was announced back in September, and you can read more about it here. Let’s not forget that the main carrot being dangled by the tax authority is immunity from prosecution. That peace of mind is no small thing – the last thing anyone wants is the tax authority to knock on their door in the middle of the night (or any other time for that matter). At the same time, the primary goal of the