Forms are important and should be respected. Sometimes legislation drives the forms, sometimes they drive the law by stretching its meaning. There is no shortage of Israeli tax forms. As it is the tax return season, we discuss below two forms which usually take far longer than expected to complete and don’t really say what they mean to say.
CFC and FPC companies are important, because their Israeli resident shareholders may need to pay Israeli tax, generally at rates of 25% – 32% on deemed dividends according to a detailed body of rules in the Israeli tax law
The above is a brief summary only. As always, consult experienced tax advisors in each country at an early stage in specific cases.