US depositors in Israeli banks face additional risks of being discovered. On Friday, October 31, 2014, we posted Bank Leumi to Face $300 Million Settlement Option to Close an Investigation Regarding Their Aiding Americans to Evade Taxes where we discussed are previous posts:
- IRS Continues Cracks Down on Undeclared Israeli Bank Accounts! where we discussed our prior posts about US taxpayers with undeclared income from Israeli Bank Accounts.
The announcement could have dramatic implications for
overseas investors with undeclared assets in Israel.
Once the new system is in place, the assets would be
automatically disclosed to participating foreign tax authorities.
It would also affect Israelis with undeclared financial holdings abroad, which the Israel Tax Authority could be informed of. The Common Reporting Standard, is expected to expand to a network of about 50 countries, the Finance Ministry noted.
Implementation of the Common Reporting Standard will take time in Israel, because it requires amendments to current legislation. It will also not be retroactive. Between now and when it comes into effect, it is reasonable to assume that some holders of undeclared assets will come clean, while others will move their money to new tax havens.
Have Unreported Income from an Israeli Bank?
Felling a Bit Faclept?
Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation
Toll Free at 888-8TaxAid (888 882-9243).