Recently we see that the Tax Authority is increasing the intensity of the fight against undeclared wealth in Israel and abroad, and they have been cooperating with various other tax authorities in the world, something that has not been done until this point.
The main form of cooperation is simply the reciprocal trading of information about Israeli citizens who hold assets and bank accounts abroad, and vice versa.
As a result of this information the Tax Authority has intensified its enforcement and has begun to take aggressive action against those people whose names appear on these lists – the results of which we can learn from the media such as the example of the Swiss banks chapter, UBS and HSBC.
At the same time as intensifying enforcement, the Tax Authority is giving those citizens who number among those who have foreign bank accounts or income from foreign assets, the chance to voluntarily disclose undeclared income and even opened a window of opportunity for a period of one year, allowing the tax-payer to declare his foreign income without fear of criminal conviction. The new procedure allows two tracks- an anonymous track and a shortened track.
In actual fact, the process of voluntary disclosure is complicated and takes place while simultaneously facing a number of bodies at the Tax Authority, where the method, the technique, and the timing of the presentation of the facts are critical to the final tax outcome and to the minimization of risk to the tax-payer. Managing the process of voluntary disclosure requires a broad understanding of the complex aspects and ramifications of the disclosure, and at the same time an appraisal of the dangers and optimum chances of success, as well as dynamic, weighted, and professional negotiations with the goal of reaching the most optimal tax outcome with the least possible superfluous damage and danger to the tax-payer.
Our office has extensive experience and proven results in this type of procedure in particular and in representing clients at the Tax Authority in general. Avoid criminal prosecution!!! It is highly recommended that if this document speaks to you or to those close to you, don’t wait! Contact our office for a free first consultation and for further details.