Afik News is the bi-weekly professional magazine of Afik & Co. Attorneys and Notary
SubscribeIncome from sale of partnership units will be taxed as capital gains even if paid over time
Business, Corporate and Joint Ventures
Taxation and Government Incentives and Funding
Dispute Resolution
A partner retired from a partnership and transferred his part to the other partners against annual payments from the partnership’s profits for several years. The Tax Authority contended that this should be taxed as income and refused to accept the position that it is a capital gain from the sale of the partnership units. The […]
Law Update: Increase of minimum wage, annual leave and payments for pension
Labor Law and Immigration
As of January 1, 2017 some major changes enacted in 2015 came into effect in the Israeli labor law. Among other changes, he following: 1. The minimum wage for a full time employee of 186 hours per month was increased to ILS 5,000 and the hourly minimum wage to ILS 26.88. 2. The annual leave […]
Taxing of Wallet Companies
Taxation and Government Incentives and Funding
Business, Corporate and Joint Ventures
Many high-wage employees use ‘Wallet Companies’ in order to try and reduce their tax burden. The 2017 tax reform may put many of them at risk of high rate taxation. Every year the Tax Authority is pushing to close, or at least reduce, the gaps in Israeli tax net. A faulty taxation planning of transaction […]
An arbitration clause in an agreement may be valid even if the agreement is set to be invalid
Commercial, Banking and Financial
Dispute Resolution
Real Estate
A joint venture for the construction of a residential building ended in a conflict resolved in arbitration pursuant to the agreement between the parties. After receiving the arbitrator’s award one of the parties moved the Court to revoke the award, inter alia because the arbitrator held that the signature on the agreement was forged and […]
The burden to ensure that the leased property fits the purpose of the lease is on the lessee
Dispute Resolution
Real Estate
A person leased a building for opening a gym and after several weeks discovered that the zoning rules do not enable it and a special permit will be required and thus cancelled the agreement. The lease agreement specifically set that the lease is to obtain the required permits and that the lessee found the leased […]
One cannot set an investment by an employee in the company as a precondition for salary
Business, Corporate and Joint Ventures
Dispute Resolution
Labor Law and Immigration
A new immigrant to Israel worked in a high-tech for six months full-time and five month part-time while not being paid, except for receiving clothes, travel reimbursements and other refunds, and did not receive pay slips or other terms given to employees. The employee sued not only the company but also the person who was […]
Unforeseen circumstances may enable changing of agreement terms even after completion of tender process
Public Law, Environment and Tenders
Dispute Resolution
A petition was filed to cancel a tender due to significant changes made in the agreement terms of the winner of the tender procedure, after the tender process was completed and thus the concept of equality between tender participant was jeopardized. The Court dismissed the petition and held that the principal of equality between tender […]
Directors approving distribution of dividends may be liable for the amount distributed and maybe even to all debts of the company
Business, Corporate and Joint Ventures
Dispute Resolution
A liquidator of a company sought to obligate directors to pay company debts because they approved three distributions of dividends prior to the company entering liquidation. The Court held that a company may make a distribution if there is no reasonable suspicion that the distribution may prevent the company from meeting its existing and expected […]
