An assessor sounds like someone who calculates numbers and issues forms. In practice, he is a kind of “first judge” in the tax system, and sometimes also a prosecutor, an investigator, and an auditor general.
When a letter arrives with the title “Tax assessment for the years…” or “Assessor’s determination”Many people panic. Whether it’s a difference of thousands of shekels or a demand for payment in imaginary amounts, the feeling is one of helplessness in the face of a huge, ramified, and opaque system.
But it’s important to understand: an assessor’s decision is not the end of the story. The law gives the taxpayer (i.e., you) the right to appeal it, present counterclaims, and even take it to court.
The question is how to do it right, when, and most importantly – why it’s not worth just paying and moving on.
What is an assessment officer’s determination – and why is it happening to me?
The tax assessor is the person responsible for determining income tax assessments for taxpayers. When he believes that the returns you have filed do not reflect reality, or when you have not filed any returns at all, he may issue Tax assessment according to best judgment .
The reasons for this are varied:
- Unreported income identified in information received by the Authority (e.g., banking information or reports from third parties)
- Discrepancies between submitted reports and external reports (e.g., between VAT expenses and revenues)
- Lack of cooperation on the part of the taxpayer in auditing and concealment of the true business activity
- Conclusions from a bookkeeping audit or investigation
Can the decision be appealed – and how does it work?
Absolutely. There are several ways and channels to appeal an assessment officer’s decision:
- Administrative achievement (first stage)
An objection may be filed within 30 days of the decision being made. To the assessor. At this stage, it is still the same entity – but a further examination of the data is carried out, accompanied by arguments, evidence and sometimes a meeting with the taxpayer.
Important tip: Although the decision returns to the assessor, many cases are closed here, when the finding is submitted professionally, including documents and a convincing explanation. - Appeal to the District Court (second stage)
If the request is denied, an appeal can be filed with the court within an additional 30 days.. This involves a full legal process, including hearings, testimony, cross-examinations, and the submission of affidavits.
The meaning: This is a legal battle in every sense of the word, which requires the assistance of a lawyer with expertise in tax law.
Is every case worth appealing?
No. Sometimes the decision is based on solid evidence, or the discrepancies are objective (e.g., failure to report identified income). But too often – it is a matter of rough estimates, a lack of understanding of the nature of the business, accounting errors, or even an overly suspicious starting point on the part of the authority.
Examples of appeals that can and should be filed:
- Tax official who ignored legitimate expenses that were fully documented
- Using unreasonable profit rates, without any basis
- A decision made without the right to a hearing
- Income assessment according to “external sources” that can be contradicted
- Incorrect calculation of revenue based on partial data
What are the consequences of not appealing?
Anyone who does not appeal accepts the ruling as a decree of fate. Furthermore, it is a decision that has final effect:
- A tax debt is created that begins to accrue interest and linkage.
- It is not possible to claim a tax refund for those years.
- The taxpayer is labeled in the records as problematic – which will result in additional checks in the future.
- The chance of retroactive correction is almost zero.
Frequently Asked Questions from Business Owners and Individual Taxpayers
- Do I need a lawyer for an appeal?
At the acquisition stage – not necessarily, but highly desirable. At the appeal stage to the court – yes, and it is even desirable that there be a tax expert. - If I file an appeal, do I have to pay the tax at the same time?
No. Payment of the debt can be delayed until a decision is made, but sometimes a bond or partial payment is required. - How long does such an appeal take?
Between several months and years, depending on the workload of the courts and the complexity of the case. - Is it possible for the tax assessor to “retaliate” if I appeal?
No. This is a completely legal procedure, and a fundamental right of every taxpayer. - What happens if I lose in court?
A request for leave to appeal to the Supreme Court can be submitted – but this is an exceptional procedure. However, the ruling is binding – and the tax must be paid in full.
Summary: Don’t give up your right – just use it wisely
An assessor’s determination may seem final, especially to taxpayers who are not used to dealing with bureaucratic and legal systems. But the law gives you the right to appeal – and to have your voice heard against the decision. Experience shows: a reasoned, well-supported, and properly administered appeal – not only reduces the amount of the charge, but sometimes eliminates it altogether.
If you’ve received a tax that feels like a disproportionate punishment to you – don’t stay silent. This is not the way of the law, nor of justice. Just don’t do it alone. In taxes – as in war – you have to know when to strike, when to defend yourself, and when to simply submit the right documents.
