Voluntary Disclosure to the Israel Tax Authorities
The Israeli Tax Authorities operate a voluntary disclosure procedure, a safe and legitimate way to report on all your assets and income with no risk of tax violations charges.
The voluntary disclosure procedure offers an excellent, real and effective way to report and legitimize previously unreported financial assets and income and non-financial assets, thus avoiding criminal tax violations charges and potential punishment and repercussions. Completing the procedure will give you peace of mind that all your tax issues with Israel’s Tax Authority are in order and you can “file them away” with no further worries.
The voluntary disclosure procedure is a positive move from the tax authority and the Israeli government, a result of many financial regulation changes locally and globally and a shift in public opinion regarding avoiding paying correct tax.
The Boaz Reuven Law Firm specializes in taxation and brings its vast experience in successfully managing voluntary disclosure procedures to its clients. We recommend starting the process ASAP, before it’s cancelled or revoked by the tax authority.
Voluntary Disclosure Explained
The voluntary disclosure procedure offers the opportunity for an open clean slate and get a new start regarding tax violations that were committed both knowingly and unknowingly. The procedure grants immunity from indictment for tax violations regarding unreported funds, assets and incomes, both in Israel and abroad. This is because all Israeli residents are obliged to report all their assets, incomes and financial activities to the Israel Tax Authority as part of a personal and residency dependent tax system, rather than a geographical one.
Approved disclosure requests allow you to pay the actual tax owed for unreported income and avoid any possibility of further criminal charges and/or legal actions being taken against you regarding these offenses and violations. For this reason, the voluntary disclosure procedure is an official and legally binding way of getting rid of any tax violation issues before any investigative or legal steps are taken against you.
Due to the complexities of filing a voluntary disclosure request, with all the necessary details and data, it’s considered best practice to get professional assistance and representation from a certified tax lawyer.
Voluntary Disclosure Options
The voluntary disclosure procedure offers two separate routes for submitting requests and disclosing assets and income for the purpose of paying the correct tax owed and avoiding legal, financial and criminal procedures.
- Anonymous Applications: This is the most popular route. It allows a taxpayer to submit applications for voluntary disclosure without specifying the identity of the taxpayer in question during the preliminary stages of the process. The tax authority investigates unreported assets and income to evaluate the actual tax liability. Only after application approval has been granted and the amount of expected tax to be paid decided, are full details and the identity of the taxpayer provided to the authorities.
- The Short Route: This is a faster application process, but the taxpayer must disclose their identity right from the start and provide all the necessary financial and asset information. The process of reviewing and approving the application is completed within a relatively short time frame. This route only applies when the total capital declared doesn’t exceed 2 million NIS and the overall taxable income is within a 0.5 million NIS limit.
Both voluntary disclosure application options are ONLY open for taxpayers who don’t have any other procedures and/or investigations against them in progress – so it’s best to start the process sooner rather than later!
Tax Lawyer Representation for Voluntary Disclosure Application
Getting assistance and representation from a certified tax lawyer for your voluntary disclosure application greatly improves the chances of the application being approved and successfully ending the process, with the correct and minimum tax paid and no further action being taken against you for tax violations.
Contact our office today to start the voluntary disclosure procedure with professional assistance from a law firm that has a proven track record in application approvals