Taxpayers in Israel rarely have the opportunity to rate the performance of the Israel Tax Authority. Even if they did, they would be apprehensive about doing so critically and openly for fear that the Tax Authority would likely come knocking at their door looking for retribution.
However, this month Israel's largest corporations with international operations and their most senior executives will get a chance to mark the Tax Authority through a questionnaire sent to them by the OECD as part of its BEPS (base erosion and profit shifting) guidelines. BEPS seeks to combat international tax planning. More than 100 corporations and their executives were sent the questionnaires either directly or through the Manufacturers Association of Israel.
The companies are being asked to have their say about the Israel Tax Authority's performance in mutual agreement procedure (MAP) between countries to prevent tax duplication.
The corporations and executives will be asked to give a rating to such questions as: Is the Tax Authority clear enough in its guidelines in attempts to reach a settlement with a foreign country and to prevent companies from paying double tax? Does the Tax Authority reach mutual agreements for the benefit of the taxpayer? Is the result sent to the taxpayer and implemented by the country? And if not why is the agreement not implemented?
On the face of it the questionnaire seems technical. But it offers a first ever opportunity for Israeli companies to provide feedback about the Israel Tax Authority's performance since Israel joined the OECD. Moreover, the companies are entitled to answer anonymously removing fear of retribution.
Published by Globes [online], Israel business news - www.globes-online.com - on January 3, 2018
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