At Passover we celebrated our exodus from Egypt and the season of our freedom. In modern times, that means the start-up nation in the promised land is free to make money from exits – selling tech and other businesses to multinational groups that need to stay ahead at all costs. ...
April 11, 2018Leon Harris
Israelis love investing their spare Shekels in bricks and mortar. But when does a landlord stop being a passive investor and becomes an active business in the real estate field? Does it depend in the number of rental properties? This matters, because on residential rental income, individuals may be as low ...
March 28, 2018Leon Harris
The OECD has been caught dawdling on the information superhighway, the Internet. This is surprising as the OECD dazzled us in 2015 with souped up worldwide tax initiatives for nearly everyone. Corporations got hit by BEPS - base erosion and profit shifting. Individuals got hit by CRS – Common Reporting Standard. ...
March 19, 2018Leon Harris
The Israeli Tax Authority has just published a controversial tax ruling that imposes partial tax on a foreign investment fund. Background: Section 108 of the Israeli Income Tax Ordinance (ITO) empoweres the ITA to collect tax from an Israeli resident who represents a foreign resident. And the Israeli Tax Authority (ITA) claims ...
March 14, 2018Leon Harris
The Israeli Tax Authority has just published a controversial tax ruling that imposes partial tax on a foreign investment fund with an Israeli presence. Background: Section 108 of the Israeli Income Tax Ordinance (ITO) empowers the ITA to collect tax from an Israeli resident who represents a foreign resident. And the Israeli ...
March 12, 2018Leon Harris
החלטת רשות המסים פוגעת בקרנות השקעה זרות בישראל ליאון הריס רשות המסים בישראל פרסמה זה עתה החלטה מקדמית, המטילה מס חלקי על קרנות השקעה זרות מסויימות. רקע כללי: סעיף 108 לפקודת מס הכנסה בישראל מאפשר לרשות המסים לגבות מס מתושב ישראל המייצג תושב חוץ. רשות המסים טוענת כי רווחים ממכירת מניות וניירות ערך הינם ...
March 12, 2018Leon Harris
The Start-Up nation thrives on cash. Where can an Israeli business find financial assistance? Try government sources including the Israel Innovation Authority - formerly the Office of the Chief Scientist and Matimop. Here is a brief overview. Competitive Research and Development: This program offers Israel’s primary financial incentives for R&D activities from ...
January 25, 2018Leon Harris
The Israeli Tax Authority (ITA) has just relaxed its procedure for enabling Israelis in less central locations in Israel to get tax breaks for doing so. The ITA announced on November 7, 2017, that it will now allow “privileged” municipal authorities to send their residents self-initiated but targeted confirmations of residency ...
January 3, 2018Leon Harris
This year Israel introduced new rules for taxing personal “wallet companies” which pay company tax at a rate of 24% in 2017, but no more if profits are left in the company’s bank account. These rules tax deemed dividends, loans to major shareholders and personal services provided via such a ...
January 2, 2018Leon Harris
OECD Deals Get Out of Jail Card On November 8, the OECD issued important guidance on how governments can catch tax evaders and, significantly, what rights taxpayers have. (“Fighting Tax Crime: The Ten Global Principles”). OECD guidance is back-door law in OECD member countries such as Israel. Article 6 of the OECD Convention, ...
December 13, 2017Leon Harris