The new procedure was published on December 12, 2017. The new procedure was published as a temporary provision so that requests under this procedure could be submitted until the end of 2019 or 2018 in the event that it is an anonymous request, which we will expand on below. The ITA undertakes to grant the applicants immunity from criminal charges and adopt a forgiving attitude, subject to certain conditions.
The procedure is intended mainly for Israeli residents who have generated income from assets located outside of Israel.
Who is entitled to apply a request for voluntary disclosure?
The conditions set out in the procedure for submitting a request for voluntary disclosure are as follows:
The request will be submitted to the Senior Deputy Director General for Investigations and Intelligence at the ITA, as he is the only person authorized to approve it.
The disclosure shall be sincere and include all the relevant information, such as names of the applicants, tax years involved, income origins, unreported income and the estimated tax. After the disclosure has been examined and approved, the applicant will be directed to the tax assessor and pay the tax. Once the tax was paid on the date determined, no criminal procedures shall be instituted against the applicant.
Voluntary Disclosure routs
According to the new procedure, the request may be submitted anonymously by complying with the above requirements, except for revealing the applicant's name which is to be disclosed after the signing of an assessment agreement.
The submission of an anonymous request can be undertaken until December 31, 2018.
The abbreviated track is intended for applications in which the total capital included does not exceed NIS 2 million and the total income deriving from the capital does not exceed NIS 0.5 million.
Under this track the applicant shall pay the tax assessed within 15 days. In general, the abbreviated track will not allow the submission of anonymous requests.
The ITA grants immunity from criminal charges to applicants undertaking voluntary disclosure. According to the procedure the limits to this immunity are as follows:
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