Under the Amendment, an Israeli resident individual who transferred out of Israel funds in a total value higher than ILS 500,000 (approx. USD 131,500), is obliged to file an annual tax return for the relevant tax year(s) in which the transfers took place and also for the subsequent year.
1. Severe tax offences above a certain threshold are added to the list of predicate offenses. (For example, under the amendment, filing of a falsified tax return, or omitting a detail that should have been included in a tax return, would be considered as a Severe Tax Offence under the PML, provided that the income involved is ILS 1,000,000 within one year or ILS 2,500,000 in a period of 4 year)
2. The maximum punishment on severe tax offence is raised from 7 to 10 year of imprisonment
3. Specific provisions enable the transfer of information between the Israeli Tax Authority and the Israel Money Laundering and Terror Financing Prohibition Authority;
The amendment will enter into force on October 7, 2016.
As explained above, the ITA announced that the VDP will be shortly amended to allow possible applicants to come to an agreement also with regards to any possible liability under the amended PML, the whole until December 31, 2016.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.