"Dear Sir/Madam, We are hereby sending you a form for filling out personal details," opens scores of letters sent in recent months to taxpayers by the Income Tax Intelligence Department. It asks the respondents to fill out personal details and a declaration on their sources of income.
The panicked taxpayers asked to disclose their Israeli and foreign sources of income rush off to their tax attorneys for advice, who tell them that this is part of a new policy by the Tax Authority to catch people whose financial activity raises suspicion of tax evasion.
This activity includes paying for home renovations under the table, frequent overseas trips, and unusually large capital market transactions.
The Tax Authority set a new targets for tax collection several months ago. Several months ago, "Globes" reported that the Tax Authority had targeted Israelis who made frequent foreign business trips, artists and singers, and Israelis who made frequent foreign trips. It is now expanding its net to catch tax cheats.
The taxpayers have no clear common denominator, except that their financial activity raised the suspicions of the Tax Authority. If you have bought a car for over NIS 500,000, renovated your home, or listed a new property at a higher value with the Land Registry, or even bought expensive furniture, you are a target.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2014
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