In light of the expected implementation of the CRS agreement in
Israel for automatic exchange of information between tax
authorities, and as part of the increasing efforts of the Israeli
Tax Authorities ("ITA") to detect tax evaders and to
expose unreported worldwide income of Israeli tax residents
together with the success of the last voluntary disclosure
procedure that expired at the end of 2016, the ITA published a new
"voluntary disclosure procedure" on December 12,
2017.
The objective of this procedure is to encourage non-compliant
tax payers to come forward, disclosure their unreported income and
pay taxes, thus avoiding criminal prosecution.
According to the procedure, the taxpayer can disclose the
unreported income, and pay the tax due, if all conditions of the
program are met, which includes a voluntary disclosure made in good
faith and that the disclosure has begun before the ITA has started
to investigate the applicant.
