Minister of Finance Ronnie Bar-On is planning to undo another reform instituted by MK Benjamin Netanyahu when he was finance minister. The Suari committee, which is reviewing the structure of the Israel Tax Authority, recommends separating the customs and VAT department from the income and land tax department. Netanyahu consolidated the two previously separate divisions.
The Suari committee also recommends that the income tax commissioner serve as the director of the Israel Tax Authority as well, while the Customs and VAT director serve as the deputy director of the Tax Authority. The Tax Authority director will appoint the deputy director, who will serve as acting director if necessary. The committee recommends establishing the customs unit as an independent agency, and redefining the unit’s role, activity, and to which ministry it should belong.
The committee recommends retaining a number of common functions, such as customer service, planning and strategy, internal auditing, and the comptroller. However, each division will operate separate departments for assessments, legal counsel, human resources, professional training, collection, intelligence and investigations, and land. The committee also recommends transferring the planning department to the Ministry of Finance State Revenue Administration.
Yitzhak Suari said, “The Tax Authority scandal raises questions about the basic integrity of public service in general, and of the Tax Authority in particular.”
If Bar-On accepts the recommendations, it will be tantamount to challenging the reform instituted by Netanyahu, when he consolidated the Tax Authority in 2004.
Published by Globes [online], Israel business news - www.globes.co.il - on October 17, 2007
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