February 21

This is not the way to transact the sale of a company – Taxation Appeal (TA) 1110-06 Dr. Netta Golan vs. The Assessment Officer Kefar Saba

Anna Liskanich, Attorney at Law

The Facts:

The appellant and her two brothers inherited shares in a private company from their deceased father (hereinafter: “the company”). Each sibling inherited 33.3% of the company. After a while, a conflict arose between the siblings. As a result, around 2001, the appellant decided to sell her rights in the company to her brothers. In the 2002 financial statements, the appellant declared a dividend income of NIS 3,485,000 from the company and additional revenue of NIS 1,681,000 as the proceeds from the sale of her shares in the company. The respondent did not accept the aforementioned statement and issued an assessment order, which led to the appeal under debate.

September 8

The Encouragement of Capital Investments Law Reform in Israel

Lior Pick, Attorney-at-Law, CPA

‪One of the most significant amendments included in the Arrangements Law for 2011-2012 involves a material alteration to the Encouragement of Capital Investments Law, 5719 – 1959 (hereinafter – “the law” or “the amendment” according to relevance), commencing on January 1, 2011 (hereinafter – “the relevant date”).

September 8

The Reform of the Incentive Capital Investment Law

The Reform of the Incentive Capital Investment Law

‪In the frame of the Regularization law concerning the years 2011-2012 an essential change was carried out concerning The Incentive Capital Investment Law, 1959 – Hatashiat. (hereinafter – “The Amendment” or “The Act”), starting from January 1, 2011 (hereinafter – “The sett date”) In the frame of this amendment all tracks of taxes that existed to the sett date were cancelled. A uniform and decreased duty rate was determined for industrial corporations, according specific determined export conditions. In addition it was determined that in develop area “A” it will be possible to profit from decreased taxes and grants. ‬