Starting from a clean slate/A new beginning/Turning a new page
Voluntary disclosure is a common procedure that allows taxpayers, who for different reasons, did not report their income and/or paid no tax, to correct this situation, report the authorities accordingly and pay the outstanding tax liability – without escalating to legal procedures and indictment.
How does voluntary disclosure work?
There are three acceptable methods for voluntary disclosure:
- Authority direct disclosure – The taxpayer initiates a disclosure and full reporting to the tax authorities regarding his past and present income, assets and etc.
- Anonymous disclosure – Using this approach allows the taxpayer to apply anonymously, thus ascertaining the tax liability even before revealing the applicant’s name.
- Fast track disclosure – this method is applicable for less complicated cases where unreported funds do not exceed 2M NIS and taxable income does not exceed 500 thousand NIS.
What should you do, if you encounter this situation?
In general, failing to report an income is considered a criminal offense in the State of Israel, but by performing a voluntary disclosure procedure you will gain immunity from criminal proceedings.
If in doubt regarding the best course of action, it is highly recommended to seek assistance from an experienced Tax expert and form the best suitable strategy for reporting and settling tax related issues with minimal risk and spending.
If you have a bank account or other property abroad that you did not report in Israel, or if you have unreported capital gains, and if you are concerned that you may have violated any of the tax laws, please consider the voluntary disclosure as it may be the best solution for you.
We can help!
Vita Algranaty & Co. is a boutique tax firm specializing in providing assistance to select clients in a variety of tax areas. The firm was founded by Shuki Vita and Shmulik Algranaty, both of whom have extensive experience in senior positions in the Tax Authority as well as working for private entities vis-à-vis the Tax Authority.
We offer a fresh look at your problem Appling creative and innovative approach and assist you to start a new page with the Tax Authorities.
To get started, contact us now.