Israeli Tax Officials Want To Reform The Reforms

by Robert Lee, Tax-News.com, London

30 January 2003

Following the Israeli elections, and with a cabinet shake-up looming increasingly large, the Ha'aretz news service has argued that whether incumbent Finance Minister, Silvan Shalom is replaced in a coalition government or retains his position, immediate moves should be taken to improve the recently implemented tax reform programme.

According to observers, issues which will need to be addressed by the Finance Minister include unifying the Treasury's many departments, combining national insurance contributions with income tax payments, and making changes to the Rabinovitz committee tax proposals, passed in haste late last year.

'The reforms, based on the recommendations of the Robinovitz committee, came into effect on January 1, but due to the haste with which they were debated in the Knesset and thrust onto the public, many believe there is already an urgent need for amendments,' Ha'aretz argued, continuing:

'Tax officials know the current law contains errors that the Knesset committee was unable to spot...and correct.'

According to the Israeli news service, Income Tax Commissioner, Tali Yaron-Eldar is also keen to launch a one-off tax amnesty for those taxpayers with undeclared black market earnings. It is thought that this could net the government between NIS 3-5 billion in the initial stages.

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