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The Israeli tax authorities are examining acquisition transactions, inter alia, to ensure they are not artificial transactions intended for offsetting losses. Transactions acquiring public shells are no exception in this regard.
A sale of intellectual property between related parties requires advance planning and preparation in order to avoid tax exposures in Israel.
The use of token-based compensation has grown in recent years. It is important to understand the tax aspects of such compensation, especially when a company is gearing up for a major deal.
The Israel Tax Authority and the Real Estate Tax Appeals Committee disagree on the entitlement to the maximum exemption from land appreciation tax.
The Israeli court’s ruling further details and explains the complicated tax issues that may arise from business restructuring and from transactions that create such restructuring.
On May 31, 2021, Israel and the United Arab Emirates signed a tax treaty. This is the first tax treaty between the states. It is expected to go into effect on January 1, 2022, after passing the necessary ratification processes in the Knesset and the government.
In order to promote the technology and biomedical industries and to restore the Israeli stock exchange to its position as an efficient and attractive arena for capital raising to companies, an ad hoc committee was formed to analyze feasible tax incentives.
Several days ago, the second phase of financial assistance grants for third-sector companies kicked off. Compared to the first phase, the size of a company’s revenue for grant eligibility was expanded, as were the period of harm and the maximum assistance threshold.
In a bold step, the Haifa District Court rejected the Israel Tax Authority’s position on a company’s repurchasing of shares, and in effect split with a ruling of the Tel Aviv District Court, who considered a similar issue several years ago.
Israeli Minister of Finance Israel Katz’s plan to reduce purchase tax for investors has gone into effect. Until now, under plans advanced by the previous Minister of Finance, Moshe Kahlon, for lowering housing prices and pushing investors out of the real estate market, the purchase tax for investors went up from 5% to 8% for an apartment that was not the purchaser’s sole apartment.
A hedge fund is an entity comprised of several investors seeking to invest in financial assets to achieve a common profit, where the execution of the investment may change from one fund to another, in accordance with the investment strategies put in place by the fund manager.
Due to the coronavirus pandemic, the Israel Innovation Authority (IIA) has issued a major easement for the companies it supports, in the manner in which payroll expenses for companies in the midst of carrying out approved plans will be recognized.
In light of the coronavirus pandemic affecting the economic market, the Israel Tax Authority has published several reliefs for taxpayers.
The Haifa District Court recently held, in a precedential decision, that an employee who received shares in a company held by a trustee in accordance with section 102 of the Income Tax Ordinance has no shareholder rights.
An amending protocol to the 1962 Israel-UK tax treaty is effective as of January 1, 2020.The protocol includes a long list of significant and fundamental amendments and updates.
The treaty for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income between the government of Israel and the government of the Republic of Serbia is expected to take effect on January 1, 2020.
The Minister of Finance signed in December 2019 the order bringing the double taxation treaty into effect on January 1, 2020.
The sanction-free voluntary disclosure procedure will come to a close at the end of 2019. Provided the Israel Tax Authority and the State Attorney’s Office decide not to extend this procedure, this may be the last opportunity to declare and report true income, and accordingly pay true taxes, without the disclosure being subject to criminal sanctions.
The Tel Aviv District Court handed down a decision a few days ago rejecting the Israel Tax Authority’s (ITA) position on the conveyance of real estate properties to trusts. This decision dramatically changes the taxation of trusts in Israel.
A precedential judgment was handed down on option plans for employees in respect of section 102 of the Income Tax Ordinance. The court ruled that when a tax assessor is notified of the allocation of options in accordance with section 102 and fails to respond within 90 days, the plan is approved and the assessor cannot later claim that this is not so, except in very exceptional cases.
