The Tax Authority, with the approval of the Legal Advisor to the Government, announced the implementation of a voluntary disclosure procedure that will remain in effect until August 31, 2026 - in a year.
According to the provisions of the procedure - businessmen, individuals, corporate officers and representatives, Israeli residents and foreign residents, who have committed tax law offenses, will be able to carry out a "voluntary disclosure" procedure, pay the taxes legally required and thus avoid criminal proceedings.
Among the conditions is the requirement that the request be made honestly and in good faith, and that at the time of the request, no inspection or investigation is being conducted by the Tax Authority regarding the requester's case.
Requests for voluntary disclosure will be submitted to the authorized entity, exclusively via an online form that will be uploaded to the Tax Authority website in the coming days.
Applications will be processed in one of two ways: a regular route and a green route.
In the regular track, an assessment agreement will be signed with the relevant office. In the green track, which is intended to expedite the processing of applications with relatively low amounts of capital, the applicant will submit a corrective report or a report in the event that a report was not submitted in the past, which will include the income that he wishes to report as part of the voluntary disclosure.
Within the framework of the green track, requests will be processed that relate to income originating from financial assets held in a financial institution outside of Israel whose balance as of 12/31/2014 is less than 4,000,000 NIS, and there were no new deposits/transfers of funds to the financial account during the disclosure period; or income from a residential rental in Israel and/or abroad in an amount not exceeding 250,000 NIS per year; or income originating from digital assets in an amount not exceeding 500,000 NIS for the entire disclosure period, and the fair value of all digital assets as of 12/31/2024 does not exceed 1,500,000 NIS.
The decision on the route in which the application will be processed will be made by the Tax Authority, after the application is approved.
In cases where the request is not approved, the Tax Authority will not be able to use the information provided, whether in a civil proceeding or as part of a criminal investigation. The Tax Authority may use any information related to the voluntary disclosure request that has reached it in another way, or in cases where the tax has not been paid or the request was not made in good faith, or part of the relevant information has been concealed.
The procedure applies to the tax offenses detailed in Appendix A to the procedure and refers to all tax systems - income tax, VAT and customs, and real estate tax - and to all types of income.
The payment of tax in relation to the disclosure of income originating from digital assets can be made in accordance with the "Temporary Order Procedure for Receiving Tax Funds Due to Profit from Realization of a Decentralized Payment Means.".
Similar procedures were previously implemented in 2011-2012, 2014-2016, and 2017-2019. As part of these procedures, approximately 9,000 cases were handled and tax was collected in a total amount of approximately 5 billion shekels.
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