Israel's 
Mizrahi-Tefahot bank now expects to pay
the US authorities a penalty of USD116.5 million, to ward off prosecution for
helping US persons evade tax on their offshore assets, it revealed in its
second quarter results statement. Previously, it had estimated the penalty at
only USD44 million. Last month, it rejected an offer from the US Department of
Justice to settle at USD342 million, and negotiations are still continuing.
Mizrahi-Tefahot, Israel’s third-largest bank, reported a 48 percent drop in quarterly net profit on August 30, 2018, as it hiked a provision to cover the potential settlement of a U.S. tax evasion investigation.
US authorities targeted three Israeli banks with investigations regarding tax evasion in the US by customers. In 2014, Bank Leumi Le-Israel Ltd. agreed to pay some $400 million to US regulators to settle a criminal probe after admitting it helped US taxpayers hide assets. Investigations by US regulators into Bank Hapoalim Ltd. and Bank Mizrahi-Tefahot Ltd. are ongoing.
The IRS investigations have caused Israeli banks to decrease their activities abroad, and there has been a dramatic drop in the number of deposits held by foreign residents in Israeli banks, the Bank of Israel has said. In the past 10 years, almost NIS 70 billion ($19 billion) worth of deposits by foreign residents have left Israel’s banking system, according to central bank data.
Is Your Name Being Handed Over to the IRS?
Mizrahi-Tefahot bank now expects to pay
the US authorities a penalty of USD116.5 million, to ward off prosecution for
helping US persons evade tax on their offshore assets, it revealed in its
second quarter results statement. Previously, it had estimated the penalty at
only USD44 million. Last month, it rejected an offer from the US Department of
Justice to settle at USD342 million, and negotiations are still continuing.Mizrahi-Tefahot, Israel’s third-largest bank, reported a 48 percent drop in quarterly net profit on August 30, 2018, as it hiked a provision to cover the potential settlement of a U.S. tax evasion investigation.
US authorities targeted three Israeli banks with investigations regarding tax evasion in the US by customers. In 2014, Bank Leumi Le-Israel Ltd. agreed to pay some $400 million to US regulators to settle a criminal probe after admitting it helped US taxpayers hide assets. Investigations by US regulators into Bank Hapoalim Ltd. and Bank Mizrahi-Tefahot Ltd. are ongoing.
The IRS investigations have caused Israeli banks to decrease their activities abroad, and there has been a dramatic drop in the number of deposits held by foreign residents in Israeli banks, the Bank of Israel has said. In the past 10 years, almost NIS 70 billion ($19 billion) worth of deposits by foreign residents have left Israel’s banking system, according to central bank data.
Earlier this in August, Mizrahi rejected a
proposal from the U.S. Department of Justice to pay a fine of $342 million to
settle the U.S. tax evasion investigation.
Do You Have Undeclared Income From
Mizrahi-Tefahot bank ?
Is Your Name Being Handed Over to the IRS?
Want to Know if the OVDP Program is Right for You?
Contact the Tax Lawyers at
Marini & Associates, P.A.
Toll Free at 888-8TaxAid (888) 882-9243
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