More Trouble for US Depositors in Israeli Banks!

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.

• More Tax Problems for U.S. Citizens with Foreign Bank Accounts in Israel and 
• IRS Targets Israeli Banks and Their US Client.

Now Israel has announced that it will be joining an international mechanism for the sharing of information on financial accounts, according to its Finance Ministry who made the announcement announced Monday on November 3, 2014. The cross-border exchange of information, which is due to be in place by the end of 2018, is expected to make it more difficult to evade paying taxes on financial assets. 
 

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

at: www.TaxAid.us or www.TaxLaw.ms or

Toll Free at 888-8TaxAid (888 882-9243).

Source:

HAARETZ