The payment covers tax assessments for 2011-2013 and tax due on aircrew expense allowances for 2014-2017.
El Al Israel Airlines Ltd. (TASE: ELAL) reported this morning that it had reached agreement with the Tax Authority Income Tax Division inspector at Ramla whereby it will pay an additional NIS 75 million tax. The company says that the payment covers tax assessments for the years 2011 to 2013 and tax due on aircrew expense allowances for 2014-2017.
El Al will record a provision of NIS 47 million ($13.5 million) in its 2017 financial statements in addition to provisions already made for the tax expense.
In December 2016, El Al reported that two tax assessments it had received from the Ramla tax inspector. In the first, it was required to pay NIS 33 million (excluding index-linking and interest) following an audit of tax deductions relating to payroll tax for 2011. The following day it reported the receipt of a further notification from the tax inspector, requiring it to pay NIS 28 million as a result of an audit of deductions for the purposes of payroll tax for 2012. El Al has now reached agreement on a payment of NIS 75 million to cover all liabilities for the period 2011-2017.
Payroll tax is an alternative to VAT for certain types of businesses in Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on February 27, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018
El Al, photo: Sivan Farag