"Non-Competition. During the Non-Compete Period, Seller shall not, for himself or through or on behalf of any other Person, without the prior written consent of the Purchaser ."[...]
The Ottoman Settlement [Old Version] 1916
12-34-56-78 Chekhov v. State of Israel, P.D. 51 (2) It was further determined, in the section E The preamble to the Activity Acquisition Agreement states that Kahane will sign, on his behalf and on behalf of the holding company, a personal guarantee for the purpose of securing Eisenberg's obligations under the agreement (hereinafter: The Personal Guarantee):
"As a condition and material inducement to the willingness of Purchaser to enter into this Agreement, Eli Kahana ('Kahana'), on behalf of himself and on behalf of Eli Kahana Holdings Ltd., an Israeli company, the sole shareholder of Seller (the 'Shareholder'), will execute a guarantee in the form attached hereto as Exhibit B (the 'Kahana Guarantee')."
The Second Agreement: A non-compete agreement between Kahane and the acquiring company (hereinafter: Non-Compete Agreement). In the framework of the non-competition agreement (clause 3), Kahane undertook, for a period of three years, to refrain from a series of actions, which are formulated in a manner similar to the non-compete clause in the activity purchase agreement. Thus, it was determined that Kahane would refrain, during the non-competition period, from the following actions:"to, either for himself or through or for the benefit of another, whether as an officer, director, employee, shareholder, partner, advisor, senior advisor, creditor or otherwise:
"Non-Competition. During the Term (as defined below), Executive shall not, for himself or through or on behalf of any other Person, whether as an officer, director, employee, equity holder, partner, consultant, advisor, creditor or otherwise, without the prior written consent of FEI: ."[...]
In clause 2 of the non-compete agreement, it was determined that the acquiring company would pay Kahane, in exchange for his undertaking, a total of $2.2 million during the years 2014-2015. It should also be noted that in the section A In the preamble to the non-compete agreement, it was determined that in parallel with this agreement, the acquiring company and Eisenberg entered into an agreement for the acquisition of Eisenberg's activity. Further to this, in the clause E In the preamble to the non-compete agreement, it was determined that Kahane would sign, on his behalf and on behalf of the holding company, a personal guarantee for the purpose of securing Eisenberg's obligations According to the Activity Purchase Agreement.
- Following the conclusion of the two agreements above, Kahane reported to the respondent, the Tel Aviv 3 Tax Assessor, receipts in the amount of $2.2 million in the years 2014-2015, which Kahane classified as capital gains income subject to a capital gains tax rate under section 91(b) of the Income Tax Ordinance [New Version] (hereinafter: the Income Tax Ordinance). In addition, in Kahane's 2015 report, Kahane offset a capital loss of ILS 170,000 for a loan he gave to his nephew. At the same time, Eisenberg reported receipts of $3.3 million in the years 2014-2015, which is subject to corporate tax.
Copied from Nevo On September 19,2017, assessments were sent to the appellants according to the best judgment, in accordance with To the section 145(A)(2)(II) To the Ordinance Income Tax. Essentially, in the assessments according to the best judgment, it was determined that the entire amount of the consideration (both the consideration to Eisenberg in accordance with the activity purchase agreement, and the consideration to Kahane in accordance with the non-compete agreement) should be regarded as income paid to Eisenberg. Therefore, it was determined that the funds received by Kahane personally should be classified as fruitful income according to Section 2(4) To the Ordinance Income Tax (dividend income), or alternatively according to Section 2(2) (income from work), or according to Section 2(1) (Income from a business or occupation) to the Income Tax Ordinance or according to the Section 2(10) (Income from Another Source) to the Income Tax Ordinance.