Tax Authority director: We will demand customer accounts info from banks

Speaking at the annual conference of The Chamber of Insurance Agents in Eilat, Yaacov said that in the new Arrangements Law, the ITA will propose reforms to handle illegal capital.

 Illustration of a sign leading to the Tax Authorities offices in Jerusalem.  (photo credit: FLASH90)
Illustration of a sign leading to the Tax Authorities offices in Jerusalem.
(photo credit: FLASH90)

Israel Tax Authority (ITA) director Eran Yaacov stated that his office will demand information about customer accounts from all Israeli banks.

He told Maariv that "the obligation to report on customer accounts from entities such as banks should be expanded." He knows that Israelis try to avoid paying taxes and said that he knows it’s hard for anyone to like the Tax Authority.

Yaacov spoke at the annual conference of The Chamber of Insurance Agents in Eilat and said that in the new Arrangements Law, the ITA will propose reforms to handle illegal capital.

Information is an extremely important tool, so the ITA "must ask for customer accounts from entities like banks, financial institutions, insurance companies and provident funds," he said, adding that this will enable it to be much more accurate in the world of the fourth industrial revolution.

In addition, the authority has a lot of information and an advanced analysis capability. In order not to harass people, they need to receive all information in advance.

 THE ISRAEL Tax Authority is apparently interpreting ‘mail’ to include email and downloads from the Internet.  (credit: OLIVIER FITOUSSI/FLASH90) THE ISRAEL Tax Authority is apparently interpreting ‘mail’ to include email and downloads from the Internet. (credit: OLIVIER FITOUSSI/FLASH90)

On the citizens' approach to paying taxes, Yaacov stated that he understands that it's hard for anyone to like the Tax Authority because nobody really likes paying taxes. Yet recently there’s been a change in the public's attitude. To improve compliance, the authority knows it needs to explain to the public the importance of tax payments.

Israeli tax authority cracks down on tax evaders

He also said, though, that the ITA will be firm against those who choose not to pay taxes legally and specifically those who do so blatantly. The authority has sent hundreds of letters to those who opened accounts in all kinds of countries and thought that the ITA wouldn’t find out. In the letters, it was clearly stated that a case was opened for them without consent. 

This means they’re legally obligated to submit a report because they have funds in various countries and don’t report them. This was the first wave of such letters, and there will be more.