The Israeli Tax Authority (ITA) announced on Thursday, June 30, that the deadline for applications – anonymous or otherwise - for the current Voluntary Disclosure Procedure in Israel ("the VDP") is postponed until December 31, 2016.

One of the reasons to postpone the deadline is the recent amendment to the Prohibition on Money Laundering Law (PML), under which severe tax offences will become a predicate offence (see further details in the second item below).

The VDP will be shortly amended to include also immunity from prosecution on money laundering offences under the PML.

The current VDP, published on September 8, 2014, includes:

1. The possibility to submit anonymous applications.

2. A "Green VDP" – a special procedure for applications where assets are below ILS 2,000,000 (currently approx. USD 519,000) and taxable income is below ILS 500,000 (currently approx. USD 130,000). The Green VDP includes the possibility to submit of all relevant reports, including the details of the applicant, and if accepted, there will be no negotiations with the ITA. The application must include the applicant's identity and amended tax return for all relevant tax years. If the invoice is paid in time, no criminal procedure will be initiated.

Since there is no change in the routine policy of the ITA to allow, as a matter of rule, anonymous applications for voluntary disclosure of assets held in trusts, foundations and similar structures, such policy is not affected by the deadline just extended, and continues to be in force.

Nevertheless, as a matter of precaution, it would be advisable to complete the procedure also by the end of the year, and settle the reporting and taxation duties of the trustee or the board of the foundation, and thus comply with the said amendment of the PML.

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