News

New Israeli Tax Ruling Regarding Israeli Residence Certificates for New Immigrants

Israeli resident individuals are subject to Israeli tax on their worldwide income and capital gains. Effective January 1, 2007, "New Residents" and "Senior Returning Residents" (Israelis who have lived abroad for at least 10 years) are both entitled to the same package of tax benefits, which include a 10-year exemption from reporting and payment of tax from all non-Israeli sourced income and capital gains, even if the foreign assets were acquired after moving to Israel.

Increased FBAR penalty for 146 Foreign Banks and Facilitators

According to the 2014 Offshore Voluntary Disclosure (hereinafter: “OVDP”), the offshore penalty of 27.5% increases to a 50% penalty in any of the following circumstances:

Israel Steps Up Campaign Against Tax-Evading Airbnb Landlords

Reproduced with permission from International Tax Monitor, 165 ITM, 8/28/17. Copyright 2017 by The Bureau of National Affairs, Inc. 800-372-1033 http://www.bna.com 

Israel Supreme Court Ruling Regarding Tax Residency

By Mirit Reif, Adv.

Recently, the Israeli Supreme Court ruled that a married businessman’s tax residency was in Israel, thus impacting his tax obligations in Israel, even though he spent a significant amount of time outside of Israel, tending to his businesses abroad and had “marital relationships” with other women while he was there.

The taxpayer had a wife and four children living in Israel. He worked in Israel and since 1991, started to engage in business activities in two other unspecified countries.

The Third Apartment Tax Bill Has Been Revoked

As mentioned in our previous articles on this subject, the Economic Arrangement Bill (Legislative Amendments to Implement the 2017-2018 State Budget) 5776-2016, was published by the Israeli government on December 29, 2016. Various tax amendments were made including the new Third Apartment Tax Bill.

This Bill imposed a tax on anyone who owns 3 apartments and more, at a maximum amount of NIS 18,000 tax per year, per apartment. The Israeli Tax Authority (ITA) recently postponed the deadline for reporting and payment under this new Bill until September 1, 2017.

IRS International Enforcement Group

On August 2, 2017, Mr. Donald Fort, the new IRS Criminal Investigation (CI) Division Chief, announced the establishment of two investigation initiatives: a nationally coordinated investigations unit and a dedicated international tax enforcement group. Fort explained that the new unit will provide a way to more effectively coordinate investigations that have nationwide impact, since it will report to CI’s frontline executives. The unit will use data analytics “to help identify and develop areas of noncompliance,” Fort said.

Deadline Deferral for Reporting & Payment of Tax under the Multiple Apartment Tax Bill

As mentioned in our previous article on this subject, the Economic Arrangement Bill (Legislative Amendments to Implement the 2017-2018 State Budget) 5776-2016, was published by the Israeli government on December 29, 2016.

This Bill included a tax to be imposed on anyone who owns 3 apartments and more, at a maximum amount of NIS 18,000 tax per year, per apartment.

Closed your account in 2009? Bank Hapoalim still wants you to report it to the IRS

Lately, we were contacted by several American citizens who received letters from Bank Hapoalim requesting that they provide proof that their account at the bank was properly declared to the Unites States tax authorities (the IRS). In addition, the bank requested from the clients to sign on a waiver of confidentiality and consent to report to the IRS information regarding the account. Even if the American citizen refuses to sign the waiver, the bank may still be required to transfer the information to the United States.

Deadline Deferred for Reporting & Payment of Tax under the Multiple Apartment Tax Bill

As mentioned in our previous article on this subject, the Economic Arrangement Bill (Legislative Amendments to Implement the 2017-2018 State Budget) 5776-2016, was published by the Israeli government on December 29, 2016.

Various tax amendments were made including the new Multiple Apartment Tax Bill. This Bill imposes a tax on anyone who owns 3 apartments and more, at a maximum amount of NIS 18,000 tax per year, per apartment.

6,000 Taxpayers Affected by New OVDP Campaign

IRS’s Large Business and International (LB&I) Division announced in January 2017, thirteen initial issue-based campaigns as a new audit strategy. The campaigns span a broad range of topics and intended to offer a comprehensive response to compliance risks.

Israeli Voluntary Disclosure Program (Israeli VDP)

Rumors have it that a new Israeli Voluntary Disclosure Program (Israeli VDP) will be announced in September 2017. This was mentioned by an Israeli Tax Authority representative during the tax forum meeting of the Israeli Bar Association. In the event that all conditions of the program are met, which includes a voluntary disclosure made of good faith effort, the taxpayer will be able to disclose the unreported income, and pay the taxes due.

The United States Tax Authority Released Information on 30,000 More Accounts to the Israeli Tax Authority

The Israel Tax Authority (ITA) recently received information of approximately 30,000 accounts owned by Israeli residents that were held in financial institutions in the United States during 2014. This list is added to the previous information that was released by the United States in January of over 35,000 accounts owned by Israeli residents that were held in financial institutions in the United States during 2015, and to the account information of 8,000 Israelis obtained from HSBC Switzerland recently.

U.S. Passport Restrictions & Delinquent Taxpayers

by Mirit Reif

In 2015, a new section of the tax code, called “Revocation or Denial of Passport in Case of Certain Tax Delinquencies", was approved by both the House of Representatives and the Senate.

Taxation of Virtual Currencies - ITA Draft Regulations

On January 11, 2017, the Israel Tax Authority (ITA) posted draft regulations relating to the taxation of virtual currencies.

Alternative Methods for Proving Lack of a Residential Home for Foreign Residents

By Mirit Reif, Adv.

When one sells a property in Israel he is obligated to pay capital gains (CG) tax on the profit of the sale. CG tax will apply whenever there is a value difference between the original purchase price and the current sale price (not including inflation increase).

A CG tax exemption will apply when an Israeli resident that owns a single home which is his only property in Israel, wants to sell it. In this case, he may sell his only home in Israel once every eighteen months with a full tax exemption on any profit gained.

“C’MON MAN!” Ridiculous Law Suits

In Georgia, USA a woman was awarded $161,000 after she was found only slightly liable for walking into a ladder while looking at her cell phone. The incident caused an indentation in the woman's head. She also suffered from headaches and a mild concussion as reported by Georgia legal journal The Daily Report.

Israel and Switzerland Sign the Agreement of Automatic Transfer of Financial and Banking Information

December, 2016

A declaration of intent for mutual cooperation was signed on November 27, 2016 between Israel and Switzerland. This agreement intends to increase the cooperation between the two countries for automatic exchange of financial information, which will assist in the enforcement of payment of Israeli tax and the combat against money laundering.

Increased FBAR penalty for 144 Foreign Banks & Facilitators

On October 14th, 2016, the IRS added 47 entries to the list of foreign financial institutions or facilitators that trigger the increased 50 percent penalty under the offshore voluntary disclosure program.

Giving Someone the Power to Choose for You

When giving one the “power” to make choices for another, and the legal aspects this entails. In this short summary we clarify some of the issues that can arise.

Israeli Tax Code Proposal to Reduce Evasion & Increasing Enforcement Laws

On August 12, 2016, the Israeli budget proposal for 2017-2018, was approved by the Israeli governmen, includes twelve clauses that were suggested as amendments to the Israeli tax code, and that are expected to be discussed for approval in November in the Knesset.  These clauses all have the same goal of reducing tax evasion and increasing tax enforcement laws.

Do veggies get equal protection?

A South Florida couple forced to dig up the organic vegetable garden they had in their front yard for 17 years, due to threats of $50-a-day fines by Miami Shores, is now pursuing a constitutional case over a front-garden ban.

Dave Wolf & Co. Law Firm is Proud to Announce that Mirit Hoffman Reif Has Been Promoted to Partner

Dave Wolf & Co. Law Firm is proud to announce that Mirit Hoffman Reif has been promoted to Partner at the firm on April 1, 2016.

Receiving money from abroad? Make sure you have back up information.

If you plan on receiving money from abroad in the near future we highly recommend that you prepare proof of funds, and if possible, have it confirmed in writing by a lawyer, otherwise, that money might never reach you.

Funny Tax News: Cookie Seller's Tax Evasion Excuse

During a random inspection by the local tax authorities, a cookie seller at a booth in Kiryat Shemona in the north of Israel was found to not have registered her income for that day. Her excuse? She claimed that she didn't have a pen at hand and that she had sent someone else to buy one for her, but that this person had not yet returned...

Odd News: Identify Thief Sets Up New York Law Firm

A Brooklyn man has been arrested for allegedly stealing a lawyer's identity and setting up a law firm where he met clients and filed lawsuits on their behalf.

هل تم فصلك من العمل؟اعلم ما هي حقوقك!

هل تم استدعاؤك لجلسة استماع قبل فصلك من العمل؟من واجب صاحب العمل أن يعقد مع العامل جلسة استماع قبل فصله من العمل، وهكذا يتسنى له التفكير بصراحة وبشكل جدي في مسألة فصله من العمل. وهذا التفكير لا يمكن أن يتم أثناء الجلسة، إنما بعدها، ويتم بعد تفكير مليّ. وأثناء تلك المحادثة يتعين عليك كعامل مرشح للفصل من العمل أن تطرح كل ادعاءاتك ضد الفصل من العمل، مثلاً: حالة مادية/عائلية صعبة، بل وبوسعك إبراز أوراق ومستندات تسند ادعاءاتك و/أو أن تُتاح لك إمكانية طرح فكرة أخرى بدل الفصل من العمل، ومنها على سبيل المثال: نقلك إلى وظيفة أخرى في الشركة، طالما كانت هناك وظيفة أنت مؤهل للقيام بها. نوضح هنا أن المحاكم لا تتردد في الحكم على أصحاب العمل بدفع تعويضات إذا لم يتيحوا لمستخدميهم المفصولين عن العمل إمكانية المحادثة لسماع اقوالهم و/أو إذا تصرفوا بطريقة مخالفة للإجراءات المتبعة.

Been fired? Know your rights!

Been fired from your job in Israel - or concerned you're about to be laid off? Do you know your rights to prior notice, a hearing and severance pay? Knowing your power as an employee can ensure you get what you deserve - and sometimes even prevent the loss of your job.

Вас уволили? Знайте свои права!

Проводилось ли с Вами собеседование перед увольнением? Перед увольнением работника работодатель обязан провести с ним собеседование ("шимуа"), с тем чтобы взвесить вопрос о его увольнении самым честным и добросовестным образом, а такое серьезное рассмотрение этого вопроса возможно не в течение самого собеседования, а только после него...

פיטרו אותך? דע את זכויותייך!

האם נעשתה לך שיחת שימוע טרם הפיטורים? חובה על המעסיק לקיים שיחת שימוע לעובדטרם פיטוריו וכך לשקול בכנות וברצינות את פיטוריו ולכן שקילה מעין זו אינה יכולה להיעשות באותו מעמד של שיחת השימוע, אלא לאחריה ובכובד ראש כאמור

Portland pimp sues Nike for $100 million for lack of warning label after beating victim with Jordans

The Oregonian reported on January 13, 2014 that 26-year-old Portland pimp has filed a $100 million lawsuit against Nike, claiming the shoe manufacturer is partially responsible for a brutal beating that helped net him a 100-year prison sentence.

Taxpayer Scores $862,000 from IRS after Tripping over a Phone Cord

A taxpayer undergoing an audit at an Internal Revenue Service office on Long Island successfully sued the IRS for $862,000 after he was injured by tripping over a phone cord.

Bitcoin Israel - Q & A

Bitcoin is digital virtual currency run by a system based on open source software. No country, company, bank or organization owns or controls Bitcoin.

ביטקוין ישראל (Bitcoin Israel)

שאלות ותשובות ביטקוין ישראל | ביטקוין הוא מטבע דיגטלי וירטואלי המנוהל על ידי מערכת מבוססת קוד פתוח. שמאחוריו לא עומדת אף מדינה, חברה, בנק או ארגון

Attorneys at Hacohen Wolf Law Offices Meet MK Rabbi Dov Lipman

Dave Wolf and Mirit Reif, attorneys at Hacohen Wolf Law Offices, met MK Rabbi Dov Lipman, who is a member of the Knesset (Israeli parliament), to discuss FATCA problems in Israel

Nothing is Certain but Death and Taxes or is it?

It seems that in 2013 you cannot be certain about the meaning of death anymore. An Ohio man who appeared in court is legally dead, a judge has ruled.

What Are My Rights? A brief guide for the working woman

Most of us are educated to believe that we can have it all if we only apply ourselves. We can have the perfect home, the relaxed well behaved kids and the perfect satisfying job. In pursuit of this challenging goal, we find ourselves being plunged into the complex world of "Working Mothers". The goal of this short article is to give you, the working woman, a basic summary of some of the rights Israeli women have at work.

Question from the web: US Citizens can`t own a securities account in an Israeli bank?

A user on a popular Israeli online forum recently posted a tax compliance issue that their Israeli bank notified them about. This type of question has become more common since the new changes in US tax and SEC requirements for US citizens living abroad went into effect. Please see the question and Dave Wolf's response below: