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Israel: What is the Source of Your Money?

shekelThe Israel Tax Authority has sent letters to 92,000 citizens requesting an explanation for the source of their money. These are people whom the authority suspects may have failed to report all of their income, to avoid paying income tax.

The questionnaire will compel recipients to explain their income, source of additional money, their business ventures and lifestyle. The letters are sent based on computer data including 25 different criteria including one who drives a high-end luxury vehicle, frequent trips abroad, large business dealings and much more. It is stressed that all of the recipients of this letter have not filed income tax returns.

According to Israeli law, one who earns 627,000 shekels annually or more is required to submit an income tax return.

The authority also turned to 16,000 residents who to date have failed to pay their debt to the state pertaining to property purchase tax since 2000.

(YWN – Israel Desk, Jerusalem)

2 Responses

  1. litvok 613 – not a typo at all. Israel has employers and banks withhold tax at the source, with individual employees then generally not needing to file returns at all. Only individuals in certain categories have to actually file returns – those who are self-employed, have certain types of income (such as some capital gains, income from abroad, etc.) or who have more than a certain amount of income (apparently NIS 627,000, though I’ve not independently verified this) need to file returns on their own.

    an Israeli Yid, CPA

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