About 250 billion NIS are rolled out each year in the country in the black market. This is one fifth of the country’s GDP. In order to reduce the black money rate in the country, many citizens and residents in the State of Israel are required to file declarations of capital. This statement indicates how much your value in money and property is. Proper filing of the complex form must be followed, as any mistake may be fatal. How to do it? CPA Guy Dovrat arranges and explains what a declaration of capital is and who is obligated to submit it.
What is a declaration of capital?
The declaration of capital is designed to examine whether the various reports made to the tax authorities over the years are in line with the economic and capital capabilities available to you, to ensure that no tax evasion has occurred.
A declaration of capital is in fact a form issued by the tax authorities where the taxpayer is required to present a comprehensive and in-depth breakdown of his assets from all areas: real estate, securities, vehicles, various liabilities, mortgaged assets and the like. We may be required to fill out such a statement once every few years and explain the changes that will occur at this time. In the declaration of capital, the taxpayer will declare the assets of all members of his family, including children up to the age of 18.
Who is required to file a declaration of capital?
- business owners are required to submit a declaration of capital once every 3 or 5 years to the tax authorities.
- Employees whose financial conduct is suspicious, whose lifestyle does not match their income or who are suspected of criminal activity or money laundering, may be required to file a declaration of capital.
- Any citizen registered with the tax authorities who acquires exceptional luxury properties such as overseas real estate, luxury vessels, personal import vehicles or luxury items in huge sums, may arouse the suspicion of the tax authorities that they enjoy unreported income and must file a declaration of capital which will explain how this purchase is in line with its declared income.
The requirement should be taken seriously
The tax authorities will not waive their right to receive a regular declaration from you which will ensure that all your income is declared, recorded and taxed as required by the authority’s regulations. The request must be submitted up to 120 days from the date of receipt of the application. A declaration of capital that is not sent or sent late may result in heavy fines and foreclosures.
The complex form may cause many difficulties when filling it out. Therefore, it is strongly recommended that you hire the services of a qualified accountant with experience in making declarations of capital that will ensure that everything is done properly and will save you many hassles and worries with the Tax Authority.
CPA Guy Dovrat’s office is at your disposal
Accountant Guy’s work experience with businesses in various industries and sizes, and his in-depth knowledge of tax authorities and in the way they are operated will serve you as a significant advantage when compiling declaration of capital and keep you from unnecessary complications. We invite you to contact us today and enjoy high quality professional accompaniment.