The Israeli Tax Authority (ITA) has announced this morning that the temporary Provision regarding the voluntary disclosure procedure which was supposed to expire today, has been extended until December 31st, 2016.
The temporary provision relates to two main issues: anonymous voluntary disclosure application and abridged application regarding disclosures of capital up to Nis 2 million and tax liability up to Nis 0.5 million.
In addition, in light of the amendment to the Prohibition on Money Laundering Law (that will take effect in October) which determines that serious tax offenses are considered as original offences according to the Prohibition on Money Laundering Law, the ITA announced that the voluntary disclosure procedure will also apply to money laundering offences originating from such serious tax offenses and that the immunity which is granted under this procedure will include immunity from prosecution for these money laundering offences .
We note that according to the voluntary disclosure procedure, a person who discloses his assets, declares the unreported income derived therefrom and pays the tax in respect thereof, will receive immunity from prosecution for the offence, provided he meets the conditions specified under the procedure.
Originally published June30, 2016
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