Recently, the ITA published to the general public that it is conducting investigation and taking measures against Israelis, who did not report their ownership of foreign bank accounts and the income thereof. Following to information obtained and gathered by the ITA regarding these bank accounts owners, the ITA started to execute extreme measures against them, by arresting them and/or summoning them to inquiries. The ITA also published to the general public information regarding the bank accounts owners, who has been arrested.

The arrest and questioning by ITA investigators constituted a (traumatic) event that should have been avoided. This subject may be resolved within a voluntary disclosure proceeding program that was announced in September by the ITA, which offers, among other things, an opportunity for anonymous applications and negotiations. Through the voluntary disclosure proceeding, the applicant may be granted amnesty for possession of an unreported bank account overseas, thus sparing himself and his family anguish, to the extent that information about him reaches the ITA’s investigators.

We must state, parenthetically, that recently, the belt has been tightening around Israeli residents who keep unreported overseas bank accounts, and the ITA is operating on all planes to receive information about them, for example through legislative amendments that will allow Israel to sign automatic information exchange treaties between with other countries.

Our office works extensively in providing service for Israel residents who keep unreported overseas bank accounts. Within the scope of our services, we perform an initial contact (in certain cases- anonymous) with the ITA in order to settle criminal and civil aspects. We recommend our affected readers to come as soon as possible for consultation concerning the voluntary disclosure program proceeding.