Israel issued statement of revised voluntary disclosure arrangement

Individual taxpayers may apply for this voluntary disclosure arrangement until 30 June 2012

The Israeli Tax Authority has issued a statement of its revised policy for voluntary disclosure of income derived from foreign assets.

In addition to immunity against criminal liability, the new arrangement provides for the possibility – upon qualification – of cancellation of administrative penalties, interest charge on tax debt and indexation of tax debt.

Requests in this respect are considered by a special committee.
Taxpayers are eligible for this arrangement for the following types of income:
• Income from foreign assets received from a foreign resident by way of inheritance or by way of gift;
• Income derived from foreign assets purchased with means derived from income generated in Israel or abroad, regardless of whether such income was taxed in Israel;
• Income from foreign assets subject to tax in Israel, as of 1 January 2003, that were held when the tax system shifted from a territorial to a worldwide approach.
“Assets”and “income” resulting from “crime” (as defined in Israeli criminal law) are not eligible. Taxpayers already under tax investigation in Israel may not qualify for this arrangement.

source :tmagazine