Under Israeli law, a taxpayer taking a certain tax position, is required to report it to the Israeli Tax Authority (“ITA”) by submitting a special form as part of the annual tax return. The reporting liability arises only if the position results in a tax saving of NIS 5 million in the relevant tax year, or NIS 10 million over a period of 4 tax years. The list of tax positions, which should be reported, is published by the ITA, further to its consultation with the Israeli Bar Association and the Institute of Certified Public Accountants in Israel.  This year, as well as in the previous year, Meir Linzen and Guy Katz from our firm’s tax department, participated in these consultations on behalf of the Israeli Bar Association.

To read the full client update – click here.