Moreover, according to the provisions of the Ordinance – the date for submitting the annual report to the Income Tax is several months after the end of the reported tax year, when for the most part, and when there is the involvement of accountants who submit the reports, there are arrangements and procedures for granting extensions for considerable periods of time of several months for submitting the reports to the tax assessor.
Due to the fact that the annual report and the self-assessment relate to the entirety of the annual business conduct, the tax assessor has the authority to Section 145(a)(2) The Ordinance shall examine the annual report for a period of up to four years from the end of the tax year in which the report was submitted, and decide whether it approves the self-assessment or issues an assessment to the taxpayer according to the best judgment.
- On the other hand, a declaration and report to the Real Estate Taxation Administration refers to a specific, single, and specific event of a real estate transaction that takes place at one specific time.
Reporting to the Real Estate Tax Authority is required to be carried out within 30 days of the date of the transaction, and there are no deadline extensions in this regard. According to Section 78(b) of the Real Estate Taxation Law, the Real Estate Taxation Administration has a period of only eight months from the date of the report to examine the taxpayer's declaration and decide whether he approves the self-assessment or issues an assessment according to the best judgment.
- It follows, therefore, that there are significant and significant differences between the methods of reporting and control of reports in the Income Tax Authority compared to those of real estate taxation. These differences also explain the interpretive difference that exists and is required between the authority to amend reports and assessments in the Income Tax Authority according to Article 147 to the Ordinance and the Authority in section 85 of the Real Estate Taxation Law.
- In the Income Tax Authority, due to the broad "wingspan" of the annual report, a significant period of time is given for the submission of the report and there is even the possibility of obtaining significant extensions for its submission, and accordingly the Ordinance also stipulates a long period of time for conducting the assessment audit of the report in order to formulate a decision whether to approve the self-assessment or issue an assessment according to the best judgment. Due to the considerable periods of time, which allow for more measured and relaxed weighing and examination, and in order to maintain stability in the conduct vis-à-vis the tax assessor, the case law stipulates that the authority to amend the reports and assessments in the Income Tax Department will be interpreted narrowly and approved only in exceptional cases, due to the expectation that the assessment conduct will focus and be summarized in the assessment and objection procedures, and whereas, due to the time periods available to the tax assessor, the likelihood of errors and errors by any of the parties is lower and therefore the possibility of correction is more limited. This is also the interpretive position of the Tax Authority, as it emerges from the interpretation provisions of the Article 147 In the Habak.
- On the other hand, reporting to the Real Estate Taxation Authority is, as stated, specific, and one-time, and for this reason, the time period for reporting such a tax event is short and without granting extensions, and the time given to the Real Estate Taxation Manager to examine the report and formulate a position regarding the issues in which he is authorized to determine - the date of sale, the value of the sale, the day of purchase, the value of the purchase, the amount of purchase tax, the amount of the betterment, the additions, The permitted exemptions from the betterment or the concessions in purchase tax (see Section 78(b) and 78(c) of the Law) – it is limited to a short period of eight months from the date of reporting the transaction.
Naturally, the shorter the time given for reporting and assessment auditing, the greater the chance that mistakes will occur, and therefore the need to determine a flexible and effective mechanism for correcting those mistakes.