A year ago, the Israeli Tax Authority issued a temporary order for a period of one year on the subject of voluntary disclosure which was due to expire these days. On September 6, 2015, the Tax Authority announced that the procedure will be valid for an additional year. According to the procedure a taxpayer may voluntarily declare income (of any kind) which was not reported in the ongoing reports to the Tax Authority, and to the extent that it complies with the conditions specified in the disclosure procedure, will be allowed to pay the tax without being subject to criminal proceedings.
The procedure enables two main tracks - the first track is "anonymous track" under which a taxpayer may in the initial phase submit the application without specifying the details of the taxpayer. After the submission is reviewed by the Tax Authority and the anticipated tax liability is determined, the taxpayer will be required to disclose the full details and the Tax Authority will issue a payment voucher. The second track, is an "abbreviated track" to handle applications for voluntary disclosure, in which the total capital included in the request does not exceed ILS 2 million and the resulting taxable income does not exceed ILS 0.5 million. In such case, after review of an application, the taxpayer will receive a payment voucher.
Upon payment of the voucher the taxpayer will be issued a notice and confirmation that no criminal proceedings will be opened regarding the information provided.