What is a tax investigation?
A tax investigation is essentially an economic investigation and is carried out by the investigation departments of the Tax Authority in the various districts. There are tax investigations that incorporate additional criminal offenses besides tax offenses, in which case the investigation will be conducted in cooperation with additional investigative agencies, for example the Israel Police, […]
When can the accounting books be discarded?
Every business owner is required to maintain accounting books and receipts from the first day of operating the business. Bookkeeping depends on the type of business, its scope, and the industry in which it operates. The VAT and Income Tax account book management instructions are complex, cumbersome, and not easy to implement. These instructions relate […]
Dealing with a tax assessment issued based on best judgment
Every business owner is required to maintain accounting books and receipts from the first day of operating the business. Bookkeeping depends on the type of business. Bookkeeping rules are found in the Income Tax regulations (bookkeeping). Many business owners and taxpayers find themselves in a situation where they have been assessed a judgment by the […]
What is a durable power of attorney?
“A man’s desire is his glory” A durable power of attorney is a legal document that allows any adult (over the age of 18) to explicitly determine the identity of the person who will be authorized to make decisions on his behalf and handle his medical and/or financial affairs on the day he is no […]
Tax offenses – fictitious tax invoices
A tax invoice issued illegally – for a service or sale made under false pretenses – is called a ” fictitious invoice “. Buying a fictitious invoice and reporting it as input means reducing the amount of VAT that the trader must pay, and reducing payments to the Income Tax and the National Insurance Institute, […]
Money laundering as an alternative to criminal proceedings for tax offenses
Tax offenses are considered serious offenses in the Israeli legal system due to their direct impact on the economy and public trust. These offenses include tax evasion, false reporting, use of fictitious invoices, and more. In some cases, the criminal proceedings can be converted into a ransom payment, which allows the proceedings to be concluded […]
Assigning tax invoice numbers – what do you need to know?
The new law regulating the issue of assigning tax invoice numbers, enacted as part of the Arrangements Law for the years 2023-2024, changes the rules of the game for businesses in Israel. The main goal of the law is to combat the phenomenon of fictitious invoices and strengthen transparency in VAT reporting processes. At the […]
Free Trade Zone in Eilat – VAT Aspects, Registration Conditions and Legal Implications
The Eilat Free Trade Zone Law (Tax Exemptions and Discounts), 1985 (hereinafter: “the Law”), was enacted with the aim of developing the city of Eilat and transforming it into a prosperous tourist and commercial area. The legislation is intended to deal with economic challenges resulting from the city’s geographical distance from the centers of trade […]
VAT refund for bad debts
VAT refunds for bad debts are a central issue in the work of business owners in Israel. Any business owner who conducts transactions with unpaid customers may find themselves required to refund VAT paid on a bad debt. VAT refunds, which are essential for many businesses, are subject to the provisions of the Value Added […]
Advance tax rulings and pre-ruling – a mechanism for ensuring legal certainty in taxation
Over the past few years, the institution of “ Pre Ruling “ or preliminary tax decisions has been increasingly used as a tool that allows taxpayers – both individuals and corporations – to avoid uncertainty in the taxation of future transactions or economic activities. This tool, which is part of the services provided by the […]