The Limited Times

Now you can see non-English news...

The cash games: the Treasury is reducing the use of cash - these are the new restrictions Israel today

2022-07-27T20:31:34.520Z


Fewer bills in the wallet: from August 1, the use will be significantly reduced between private individuals or authorized dealers • What's new for businesses? • Are there exceptions? And what is the punishment for lawbreakers? • all the answers


Get used to it: starting August 1, 2022, the amounts in the law on reducing the use of cash will be updated and significantly reduced, so that the use of cash will be further reduced: from NIS 50,000 between private individuals to only NIS 15,000, and to NIS 6,000 in transactions with authorized dealers, instead of NIS 11,000 currently.  

The law entered into force in January 2019, and aims to reduce the phenomenon of black capital.

The law imposes administrative and criminal liability on the recipients of cash payments and also on those who pay in cash.

We enlisted the help of lawyers Erez Harel and Hilla Shimon, from the field of white collar and the prohibition of money laundering from the Gornicki law firm, to sort out the matter for you.

What's new for business?

In transactions up to NIS 6,000 there is no restriction regarding receipt or payment in cash.

Above this amount, you can pay or receive cash only up to 10% of the transaction price, or NIS 6,000 - whichever is the lower amount.

For example, a person who purchased electrical goods in the amount of 7,000 shekels, can pay in cash up to 700 shekels, and the balance will be paid not in cash.

"The prohibition also applies to wages, and it is prohibited to pay and receive wages in an amount exceeding 6,000 shekels. During the first two years, fines will not be imposed on employees who received wages in cash in the amount of between 6,000 and 8,500 shekels and those who committed the violation for the first time, but will be given a warning" . 

What restrictions have been added regarding private transactions?  

"In transactions between two private individuals, the amount will be updated to NIS 15,000, except in car transactions, where the amount remains NIS 50,000. In transactions above this amount, it is possible to pay or receive in cash only 10% of the transaction price or NIS 15,000 - whichever amount is lower.

"The law also applies to gifts - it is forbidden to give a gift in an amount exceeding NIS 15,000 in cash. This restriction does not apply to payments between relatives, except if it is a salary." 

Are there exceptions to the law?

"The law exempts supervised financial entities and GMCs, and allows them to give cash loans even in amounts of more than NIS 6,000.

Another exception that already exists in the law is in relation to residents of Yosh, Gaza and Israeli citizens who pay or receive payments from them in cash - for whom the restrictions on the use of cash will only come into effect on January 1, 2023." 

What is the expected punishment for violators of the law? 

"The punishment for the dealers is a financial sanction, determined according to the amount that was not allowed to be paid in cash, in steps between 15%-30% of this amount. Anyone who commits a fraudulent act in order to evade the prohibitions in the law (for example, splits transactions or records false details in a document) - faces a three-year prison term years". 

According to attorneys Harel and Shimon, "It seems that the new restriction will not lead to a fundamental change, because while the change brought about by the law since it came into force in January 2019 gave rise to new rules for the use of cash and checks, the reduction of the amounts now is more technical in nature, amounting to thousands of individual shekels. So that the reduction The aforementioned will lead to change, strict enforcement will be required."

were we wrong

We will fix it!

If you found an error in the article, we would appreciate it if you shared it with us

Source: israelhayom

All news articles on 2022-07-27

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.