On December 18, 2016, the Israeli Tax Authority (ITA) announced that agreements were reached with the Israel Diamond Exchange and the Israel Diamond Manufacturers Association, regarding taxation of the Israeli Diamond Industry.
These agreements, which are expected to be reflected in new legislation in 2017, will enable members of the Israeli diamond industry to participate in the voluntary disclosure program published by the ITA on September 7, 2014, which will be in force until the end of the year.
The ITA has announced that the voluntary disclosure program will not be extended past the end of 2016. However, it is unclear at this time whether the voluntary disclosure program may be extended in some manner for members of the Israeli diamond industry.
Special considerations of unique aspects of the diamond business were agreed upon and approved by the Israel Ministry of Justice, but have yet to be published. These special considerations will guide tax assessors in voluntary disclosure programs of members of the Israeli diamond industry and in determining applicable tax liability. Please note that the general conditions and limitations set in the voluntary disclosure program published by the ITA on September 7, 2014, will apply to voluntary disclosure programs of members of the Israeli diamond industry.
We are at your disposal for any question or verification.
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This review was prepared only for informational purposes and as a summary. The information contained in it does not constitute legal opinions or advice.
Should you have any questions or need additional information regarding this matter, please feel free to contact Adv. Tal Atsmon, Head of the Tax and Executive Compensation Department: tal.atsmon@goldfarb.com, 03-6089858, Adv. Yaron Sever, Deputy Department Head of the Tax and Executive Compensation Department: yaron.sever@goldfarb.com, 03-6089161, or the attorneys responsible for handling your matters at the firm.
