Tax alert

On March 13, 2008 the Israeli Ministry of Finance issued an official press release according to which significant legal amendments and benefits are planned to be introduced in relation to the 60th anniversary of the State of Israel. The plan includes tax amendments to be enacted as a tax reform aimed, according to the Finance...

In November 2007, a significant tax Decision (Income Tax Appeal 1226/02) was issued by the Tel Aviv District Court. According to that Decision, dividend stripping, i.e., the transfer of shares of a company immediately prior to dividends distribution, should be considered as two separate transactions, for tax purposes: (a) transfer of...

General: As a general rule, tax treaties provisions should prevail over the domestic laws of the contracting states. According to a landmark decision of the Tel-Aviv District Court (the 5663/2007 the Yanco-Weis Decision), Israeli domestic law provisions, which are designed to prevent tax abuse and tax evasion, should...