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The use of cash will be further reduced.

What it means?

From August 2022, the ceilings of the amounts in the law will be reduced to reduce the use of cash.

What are the new restrictions, how much can you pay and in which transactions will there be an exception?

All the details, and there are also those who oppose: "The law can not be tightened without proving that the existing law works"

Tags

• Cash

• Avigdor Lieberman

• money laundering

• Dirty money

David Rosenthal

Wednesday, 27 October 2021, 12:24 Updated: 12:51

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The Knesset's Constitution, Law and Justice Committee approved the order of Finance Minister Avigdor Lieberman (first reported in Walla! Money): https://finance.walla.co.il/item/3449615), regarding the reduction of the ceiling in the law to reduce use. In cash, so that

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To the full article

At some point the count will stop (Photo: ShutterStock)

A statement issued by the Constitution Committee said that a study conducted by the Ministry of Finance in preparation for the order to update the amounts found a declining trend in cash growth patterns in the period of the law's entry into force, halted with the outbreak of the corona crisis.

Therefore, in order to fulfill the purpose of the law to combat black capital, the Minister of Finance, with the consent of the Minister of Justice and the Governor of the Bank of Israel, sought approval from the Committee to reduce the amount of ceilings, which will take effect on August 1, 2022. In 2022 and NIS 300 million from 2023 onwards.

The committee also approved the regulations of the Minister of Justice, according to which an administrative fine will be imposed for violating the law by private individuals. Approved will be an alternative to an indictment and will allow for more effective enforcement.

Do not mess with the fines

Executive fines will be imposed according to the amount of the violation.

If the payment is in cash, the payment by check or cashier's check is up to NIS 25,000, the administrative penalty rate will be 10%.

If the payment is in cash, the payment by check or the cashier's check is from NIS 25,000 to NIS 50,000, the administrative fine rate will be 15%.

If the payment is in cash, the payment by check or the cashier's check is higher than NIS 50,000, the administrative fine rate will be 25%.

In the case of a cash payment for wages in the amount of NIS 6,000 to NIS 8,500, the administrative fine rate will be 5%.

It was further determined that in a repeat administrative offense, an amount equal to the first administrative fine will be added to the fixed administrative fine for that offense.

It was determined that a repeat administrative offense would be an offense committed within two years of the previous offense of the same provision in the law for which the administrative fine was imposed.

It was also determined that from August 1, 2022 (entry into force of the update of the amounts) and for two years, no administrative fine will be imposed on the offender of receiving payment of cash in the amount of up to NIS 8,500, unless he is notified that if he commits the offense again he will be charged Administrative fine for the same offense.

"An illogical decision."

Adv. Uri Goldman (Photo: Amit Shaal)

Yesterday, the committee's chairman, MK Gilad Karib, announced that in light of the tax authority's failure to prove that the law works - there will be no vote on it.

Lawyer Uri Goldman, (co-chair) of the Tax Authority's Anti-Money Laundering Committee, who represented the Bar Association who opposed the law, argued that the law could not be tightened without proving that the existing law works. To reduce the use of cash.

Advocate Uri Goldman responded to the committee's vote: "The committee's decision does not make sense. A law that has not been proven to work in the first place cannot be aggravated. To bring data and not bother to explain how she intends to collect another NIS 300 million - the cost of the bill. "

Finance Minister Avigdor Lieberman: "Employers tell me that workers want to pay them in black" (Photo: Reuven Castro)

The Minister of Finance, Avigdor Lieberman, does not hide the rationale behind the idea.

Recall that at the beginning of the month during the discussion in the Finance Committee Lieberman hinted that the real number of unemployed is smaller than what the data show.

"The Israeli economy currently lacks at least 130,000 workers. How do you explain that on the one hand the employers are thirsty for workers, and on the other hand we see that there is still a large number of unemployed? Because a large part is 'black economy'. The

fight against black capital is one of the biggest challenges, we have given budgets for the establishment of economic courts for the fight against black capital and economic crime. At least 20% of Israel's economy is black economy - this is a figure that does not exist in advanced countries. Hard".

(The words of the Minister of Finance were brought by Sonia Gorodisky).

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