Judge Magen Altuvia: Double taxation harms Israel’s ability to create a business milieu for foreign residents.
“A person paying full taxes abroad while tax at source is deducted in Israel, resulting in a tax burden of 65-70%, is an unreasonable situation in terms of Israel’s ability to create a business milieu that foreign residents will feel comfortable in,” said Tel Aviv District Court Judge Magen Altuvia. He made the comment at a seminar by the Tel Aviv branch of the Israel Bar Association in relation to double taxation.
Altuvia was discussing cases involving disagreements with the Israel Tax Authority about double taxation. Until cases are settled, the plaintiff often pays double taxes. Altuvia said that it was easy to understand the Tax Authority’s tendency to obtain the tax receipts in dispute until the case is settled, but this raises questions about the business milieu that Israel wants to create.
Altuvia said, “Double taxation is not only the final tax that will be determined several years after a case is opened, but is also the amount paid during this time. The fact that somewhere a businessman knows that until his liabilities are settled, he will have the money is important in my view.”
Published by Globes [online], Israel business news - www.globes.co.il - on October 24, 2007
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