Money cash Shekels currency 521.
(photo credit: Reuters)
The Israel Tax Authority (ITA) is playing a role in Operation Pillar of Defense
by paying financial compensation and allowing more time to report and pay
Fifty teams of ITA employees and assessors
are deployed in all the stricken areas and are providing initial financial
assistance to citizens, the ITA announced Tuesday. A Help line has been set up
at (08) 662-3300, and more than 1,200 incidents were reported after six days of
With regard to buildings, the government undertakes to
compensate damage caused by hostile action, in accordance with the law. The aim
is to rectify the situation as fast as possible.
With regard to household
possessions, the government provides compensation according to a price list
based on type of item and size of the family. But there is no compensation for
money, food, checks, jewelry and artwork.
For example, a married couple
with two children can claim NIS 52,053 for furniture, NIS 20,933 for clothes,
NIS 37,857 for electric appliances and electronic devices and NIS 24,505 for
other household items. Before damage occurs, additional amounts up to NIS
863,808 may be insured by paying a premium of 0.3 percent.
will be repaired at any garage subject to the approval of a government
Business assets will be recompensed based on their market value
at the time of the damage. Business inventory will be recompensed at cost before
VAT. It will be necessary to prove ownership by providing invoices, inventory
lists or financial statements confirmed by an accountant.
compensation is available to people who bought insurance from the government. Up
to NIS 863,808 of extra coverage can be purchased by paying a premium of
A number of tax administration measures have also been
implemented. First, the ITA has announced a general extension from November 30
to December 31 for filing 2011 annual Israeli tax returns. This applies to
taxpayers who use an Israeli CPA or tax adviser, as these professionals are
allowed to stagger the tax-return filing of their clientele over several months
beyond the normal filing deadlines of April 30 or May 31.
Second, the ITA
has granted an extension for monthly/bimonthly filings from November 15 to
November 27 regarding income tax and VAT. This only applies to residents in the
South within 40 kilometers of the Gaza Strip.
Institute filings are currently due this Wednesday,and we are awaiting a further
Third, taxpayers and tax preparers who do not live in the
South but were called up to serve in reserve units and cannot report on time are
permitted to apply to their tax office for a cancellation of any penalties,
interest and indexation. The ITA director has instructed tax and VAT officials
to “apply broad discretion, understanding and sensitivity” in dealing with such
cancellation requests (this is not normally the case?).
readers peace and quiet wherever you are.
As always, consult experienced
tax advisers in each country at an early stage in specific
cases.Leon Harris is a certified public accountant and tax
specialist at Harris Consulting & Tax Ltd. firstname.lastname@example.org