Latest Updates /  Tax

Our firm represented the private equity group Bridgepoint in the acquisition of control in the Israeli software testing company Qualitest from Marlin Equity Partners for approx. USD 420 million.

Following the ruling that Bar Refaeli must pay NIS 16 million in income tax, Adv. Harel Perlmutter, the head of our tax team, was interviewed by a popular radio program on 103FM. The Central District Court in Lod rejected yesterday the supermodel's appeal, which was filed following an Israel Tax Authority order that she pay taxes in Israel on millions of dollars in income earned abroad. Refaeli claimed that during the relevant years she spent only six months in Israel, and as a foreign resident, she did not owe any money to the tax authorities. Harel Perlmutter explained the definition of a country of residence, as the trial revolved around the question of whether Refaeli was domiciled in Israel in 2009 and 2010. He also clarified the difference between the civil case and pending criminal charges.

Adv. Harel Perlmutter lectured today at Ben-Gurion University on startup taxation. The lecture was part of a course for MBA students in the Faculty of Management.

Adv. Micky Barnea was featured in a follow-up article in Globes about the Income Tax Authority's new circular that changes the tax policy relating to capital-based compensation dependent on performance. According to Barnea, "The new circular stipulates that options allocated under an approved plan, submitted lawfully to the Tax Authority, may be discovered on judgment day as not being entitled to reduced capital taxation."

Adv. Daniel Lorber, the head of our firm's Equity Incentives practice field, was interviewed by Globes on the Israel Tax Authority's latest decision. Instead of a capital gains tax rate of 25% on options granted to employees for exercise in the event of an exit or issue, the proceeds from such exercise will now be considered labor income, and therefore the tax liability may rise to 50%.

Adv. Harel Perlmutter was interviewed by Bloomberg BNA following Airbnb's decision to remove listings in the West Bank.

Adv. Anat Even-Chen was interviewed by Bloomberg BNA following the implementation of new rules regarding the licensing of IIA-funded know-how for use by multinational corporations outside of Israel.

Adv. Harel Perlmutter, Head of the Tax Department, was interviewed by Bloomberg BNA following the Israel Tax Authority's announcement of a new "Green Route" to make it easier for Israeli entrepreneurs to transfer corporate assets abroad.

Adv. Harel Perlmutter, Head of the Tax Department, was interviewed by Bloomberg BNA on the decision of Amazon Web Services’ to start collecting and remitting value-added tax in Israel.

Adv. Harel Perlmutter was interviewed by Bloomberg BNA, following the reveal of eBay Inc. that the Israel Tax Authority is demanding NIS 156.6 million in additional taxes from the company for the 2010-2015 tax years.

Our firm is hosting today the participants of Taasiyeda, an education program founded by the Manufacturers Association of Israel, for a seminar on founders' agreements, IP, and tax issues.