Dr. Avi Nov, Adv.
The Israel Tax Authority extended by three months (from June 30 to September 27) the time deadline for Israelis who have foreign income and assets to disclose them. For more details on this, see Israel's new voluntary disclosure of offshore income.
According to the Israel Tax Authority announcement, the decision to grant an extension to the Voluntary Disclosure Procedure was taken after many requests from taxpayers and their representatives, who had not finished preparing their applications, and as an integral part of the Israel Tax Authority’s strategy of increasing confidence, transparency and listening to the public.
The Israel Tax Authority notified that after the above date (September 27, 2012), no relief will be granted for those who fail to exploit this window of opportunity. For such people who fail to disclose their income, the Israel Tax Authority announced that it will apply all its civil and criminal powers.
In the new announcement, the Israel Tax Authority declared that they will now allow anonymous applications to be made in the above three-month period to ascertain the resulting tax liability before formally applying using the Voluntary Disclosure Procedure.
The anonymous applicant should apply to the Director of the Israel Tax Authority and specify all the required information including:
· the capital accumulated abroad;
· the types of income accumulated (such as interest, capital gain, dividend);
· the source of the capital abroad;
In addition, the anonymous applicant should report:
· the list of documents he holds;
· the local tax office that handles the taxpayer’s tax file, and if there is none, the place where he resides.
A person who submits an anonymous application will be referred to the relevant tax office for processing to determine the amount of the tax due. If the anonymous applicant decides to go ahead, he must then file a formal application on a named basis.