"The income tax division will now consider information obtain from foreign tax authorities about Israelis' overseas income far more than in the past," Ministry of Finance income and property tax international division director Yaron Shidlo has told "Globes".
Shildo said the income tax division has been receiving information Israelis' overseas income from the tax authorities from OECD member states in the past five years, but that the information had hitherto been irrelevant, because the income was not taxable in Israel in most cases, because of the territorial tax system.
"Today, under the personal tax system, the information received has become much more relevant. That means that the income tax division place much greater importance to whether taxpayers file reports at all and on how much income," Shidlo said.
Regarding the tax liability on income from gambling, Shidlo said the information received from foreign tax authorities included Israelis' income from gambling. "This is how we enforce the law, unless the taxpayers file reports on their own initiative."
At an Institute of Certified Public Accountants in Israel conference in Eilat yesterday, former Institute president Alex Hilman said trusts was now one of the surest methods of tax planning and to avoid paying taxes in Israel, provided that the law is not changed in line with the recommendations of the trusts committee.
Published by Globes [online] - www.globes.co.il - on June 10, 2004