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The billions on the way?
An amendment to the Natural Resources Taxation Law was approved
The wealth fund was supposed to already have tens of billions of shekels for the benefit of all Israeli residents.
In practice, the beneficiaries of natural resources used to appeal the charge and delay the payment for years in lengthy litigation with the tax authorities.
The amendment passed in the Knesset is supposed to put an end to the situation: first they will pay 75%, then they will hold a debate
Tags
Natural Resources
taxation
Income Tax
jazz
Sonia Gorodisky
Thursday, 11 November 2021, 06:47 Updated: 07:04
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The Knesset plenum approved on second and third reading the bill on the taxation of profits from natural resources. The law proposes changes in the mechanism for collecting excess profits for the Israel Citizens' Fund, with an emphasis on collection in the event of a dispute regarding the amount of the assessment between the Tax Authority and corporations.
The fund's income comes from the Petroleum Profit Tax Law, from 2011. According to the law, the fund will be established after accumulating NIS 1 billion in excess profits tax. Until the establishment of the fund, the income from over-profit tax is kept in a special account managed by the Accountant General in the Ministry of Finance.
In the current situation, the process of paying excess profits tax is carried out in such a way that initially, the corporation, according to its calculations, determines a self-assessment and indicates this in the annual report to the Tax Authority. The Assessing Officer examines the report and must determine whether he accepts the corporation's calculation or whether he believes the assessment is higher.
If there is no consent, the assessee issues an "assessment according to the best judgment" - without consent. In payment for profits from oil and natural gas, the assessee must do so within one year of submitting the report, in the rest of the natural resources within four years.
If there is no agreement between the assessee and the corporation, a court order is found and the judgment can be appealed to the district court and even to the Supreme Court (a procedure that may take a long time). As long as there is no final assessment agreement or court ruling, the amount of the dispute in dispute (the gap between the company's self-assessment and the assessment issued by the tax authority) should not be paid.
The law has now been amended so that in the event that an assessee removes the higher assessment from the corporation's self-assessment, and the corporation chooses to go to court, the assessment issued by the assessee will be paid by the corporation, including 75% of the disputed assessment (in addition to the undisputed part). The court (of course if it decides in favor of the corporation, the permit fees will be refunded to it).
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Alex Kushnir: "Opposition has done everything to stop the law that will put money into our children from natural resources" (Photo: Reuven Castro)
"Money will start flowing to the wealth fund"
The chairman of the Finance Committee, MK Alex Kushnir: "To take part in the establishment of the Wealth Fund is to do justice to all citizens of the State of Israel.
I finished preparing the 'Natural Resources' law in the Finance Committee four months ago, but it did not end there. waiting for me dozens of hours into the night and filibuster never-ending - the opposition did everything to stop the law would bring money to our children intervals natural resources.
after years of shuffling and dreams of principal wealth, it's finally happening. the practice of attracting the date of payment of the tax by The gas, oil and natural resources companies ended.
Even if there is a dispute over the amount of the tax, the companies will be required to pay at least 75% of it immediately.
That's how we released the cork and the money will start flowing to the wealth fund "
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