The Israeli Supreme Court has just ruled that a taxpayer cannot claim a foreign tax credit under the US-Israel tax treaty (Tel-Aviv 4 Assessing Officer vs. Gmul America Ltd, Civil Appeal 8934/16 of June 11, 2018). Double taxation and no tax treaty relief is not good for international trade and investment ...
July 11, 2018Leon Harris
The Israeli Supreme Court has just issued a judgment of interest to the Israeli hitech and industrial sectors and their employees (Kontera Technologies Ltd v Tel-Aviv 3 Assessing Office 943/16, Finisar Israel Ltd v Rehovot Assessing Officer 1728/16). Transfer Pricing in Israel: The Supreme Court handed down a combined judgment relating to ...
June 13, 2018Leon Harris
New restrictions will limit the use of cash and blank checks (cheques) commencing the beginning of 2019 pursuant to a law just passed by the Knesset (Law Limiting the Use of Cash, 2018, Book of Laws 2710). The new law distinguishes between businesses, consumers (referred to as non-businesses) and tourists. A business ...
May 23, 2018Leon Harris
In 2017, it became mandatory for the self-employed in Israel to contribute money to their own pension fund, even if they are Exempt Dealers (Osek Patur). Type of fund? The pension fund must be an approved Israeli fund, such as a regular pension fund, managers’ insurance or provident fund. A foreign product is ...
April 25, 2018Leon Harris
בפסח אנו חוגגים את היציאה של בני ישראל ואת זמן חרותנו. בזמנים המודרניים, פירוש הדבר שה-STARTUP NATION בארץ המובטחת חופשיה להרוויח כסף מיציאות אקזיט - מכירת חברות טק ועסקים אחרים לקבוצות רב-לאומיות שצריכות להמשיך להתקדם בכל מחיר. לדוגמה, אינטל שילמה 15 מיליארד דולר עבור Mobileye בשנת 2017 ו- KLA-Tencor משלמת ...
April 11, 2018Leon Harris
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