{"id":8585,"date":"2025-10-05T08:14:38","date_gmt":"2025-10-05T08:14:38","guid":{"rendered":"https:\/\/aboulafia.co.il\/?p=8585"},"modified":"2025-10-05T08:14:38","modified_gmt":"2025-10-05T08:14:38","slug":"voluntary-disclosure-update","status":"publish","type":"post","link":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/voluntary-disclosure-update\/","title":{"rendered":"Voluntary Disclosure \u2013 update"},"content":{"rendered":"<p style=\"text-align: left;\">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.<\/p>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">The facility was announced back in September, and you can read more about it\u00a0<a href=\"http:\/\/www.aboulafia.co.il\/voluntary-disclosure-procedure-announced\/\">here<\/a>.<\/div>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">Let\u2019s not forget that the main carrot being dangled by the tax authority is immunity from prosecution. That peace of mind is no small thing \u2013 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).<\/div>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">At the same time, the primary goal of the tax authority is to encourage more people to come into the system and start paying their taxes on an ongoing basis.<\/div>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">Whilst not\u00a0a huge amount was learned, there were\u00a0a few important points that were clarified:<\/div>\n<div style=\"text-align: left;\"><\/div>\n<ul style=\"text-align: left;\">\n<li style=\"direction: ltr;\">The tax authority are interested in people sorting out tax crimes (of all natures) going back 10 year (i.e. no further back than 2005). For prior periods, the tax authority needs to be satisfied that the source of funds is clean, and the burden of proof is on the taxpayer in question to prove that the funds were not from monies that should have had Israeli tax paid on them. If proof cannot be forthcoming, expect an \u201cimputed tax\u201d to be levied.<\/li>\n<li style=\"direction: ltr;\">The \u201cshort\u201d route qualifications are treated fairly leniently, i.e. they want more people in this route. This should allow for quicker audits by the tax inspectors \u2013 although whether this happens in practice remains to be seen.<\/li>\n<li style=\"direction: ltr;\">The \u201canonymous\u201d route is designed to give the taxpayer piece of mind regarding the tax due before disclosing their name. The representative said that he has not heard of a single case where the amount has been reneged on once the name has been disclosed.<\/li>\n<li style=\"direction: ltr;\">The approval stage (checking that the taxpayer has no started investigation) is taking much longer than expected. The authorities are trying to improve this aspect; but it is not entirely in their hands.<\/li>\n<li style=\"direction: ltr;\">In and of itself, the receipt of the form sent out by the tax authority requesting information (see more\u00a0<a href=\"http:\/\/www.aboulafia.co.il\/tax-authority-clamping-down-on-non-reporters\/\">here<\/a>) does not necessarily imply prior information; much depends on why the person received the form and whether it has anything to do with the unreported income.<\/li>\n<li style=\"direction: ltr;\">To date, approximately 1,600 requests have been made.<\/li>\n<li style=\"direction: ltr;\">The tax authority representative said that tax paid incorrectly to a foreign country (e.g. due to Double Tax Treaty provisions)\u00a0that cannot be recovered \u201cwill be taken into account\u201d. He declined to elaborate further as to how that would be done.<\/li>\n<li style=\"direction: ltr;\">Paying the tax \u2013 and thereby sorting out the civil side of the issue \u2013 puts you in s much better place in terms of potential criminal proceedings. And so, even for those who don\u2019t want to go into the full disclosure scheme should report their income and pay the tax due, even if they don\u2019t get the \u201cget out of jail\u201d card.<\/li>\n<\/ul>\n<div style=\"text-align: left;\">Don\u2019t forget, applications for the \u201cshort\u201d or \u201canonymous\u201d routes must be submitted by\u00a0<strong>6 September 2015.<\/strong><\/div>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">I cannot sufficiently stress how important it is to sort these matters out now. With information sharing taking huge strides by tax authorities around the world, there simply won\u2019t be the possibility of hiding current, future or past undeclared incomes.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>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\u00a0here. Let\u2019s not forget that the main carrot being dangled by the tax authority is [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[200,201,253],"tags":[],"class_list":["post-8585","post","type-post","status-publish","format-standard","hentry","category-israeli-taxation-en","category-voluntary-disclosure-en","category-binyamin-radomsky-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Voluntary Disclosure \u2013 update - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/voluntary-disclosure-update\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Voluntary Disclosure \u2013 update - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\" \/>\n<meta property=\"og:description\" content=\"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. 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