The Knesset Law Committee has approved a bill that would increase the severity of tax evasion, making it a criminal act similar to money laundering. The bill now has to be passed in its second and third readings in Knesset before it becomes law.

According to the bill, the new designation would be applicable if one hides NIS 1 million or more of annual income or NIS 2.5 million or more over a four-year period. The bill will also apply to persons who do not pay VAT (Value Added Tax), setting parameters at a minimum owed of NIS 170,000 annually and NIS 480,000 over four years.

This will ease enforcement by relevant agencies, including investigations against Jews from abroad who have purchased properties in Israel and in light of treaties between Israel and many countries in which they share information for the mutual benefit of all.

Haaretz adds under the new bill, the Anti-Money Laundering Authority will be permitted to share information with Israel’s Tax Authority, giving the latter a major boost in enforcement abilities as it will have the authority to lock up assets.

The maximum jail term will remains as it is today; seven and ten years for tax violation and money laundering respectively.

(YWN – Israel Desk, Jerusalem)