Tax Raids Held in Israel

November 19, 2013 Taxation In AsiaTaxation in Israel

Jerusalem propertyJERUSALEM – Several hundred homes have been raided by tax authorities across Israel, in an effort to find tax evading property owners who don’t declare rental incomes.

Over the weekend the Tax Authority of Israel revealed that several raids and investigations were conducted by tax inspectors last week on affluent homes across the country in an effort to uncover evidence of tax evasion, especially instances of overseas-based landlords not reporting the rental incomes received from high-end properties.

Two separate raids were initially carried out on pre-selected homes in Tel Aviv and Herzliya Pituach, and several days later a further raid occurred in Ashdod.

According to the Tax Authority, over the course of the last raid, 200 homes were visited with specific requests for the occupier to provide the legally mandated lease agreements and evidence of the payment of the rent.

The requested information was only provided in 30 instances, and with an additional 80 residents were given several days to provide any paperwork which wasn’t on hand, while the remaining individuals were not present at the property and are expected to be contacted within days.

The collected paperwork and information will be examined and compared to the income declarations already provided to the Tax Authority by the home-owner.

If any discrepancies or evidence of illicit activity are uncovered, the local legal representative of the home-owner will be asked to represent the client and provide further clarification on the situation.

Photo by runneralan2004