Introduction
Israel is a relatively small country, of approximately 6 million people. It is in the heart of the Middle East and has excellent access to Europe, Africa, Asia and North America. As the Middle East peace process becomes a reality, Israel's strategic position and human resources will make the country one of the economic and financial centers of the Middle East. Israel's population growth has been quite phenomenal and there is a continuing immigration from around the world. In 1990, Israel's population was 4.8 million residents. By 1999 its population had grown to 6 million.
Israel is considered to be a part of the Western world and its legal and taxation arrangements are based on Anglo-American foundations. Many people do not realize that, although its own residents bear a heavy tax burden, in certain respects, it may be referred to as a tax haven for both foreign residents and for segments of its permanent population. Probably one of the most notable characteristics
