The High Court of Justice on Monday 9 Elul rejected a petition claiming a law providing access to US tax officials regarding personnel information of Americans living in Israel is a violation of one’s rights. Israel’s High Court sees things differently and feels the reciprocal agreement between the US and Israel is part of global efforts against money laundering and tax evasion, not a violation of one’s basic rights. In fact, Israel has agreements with other nations too as the global community continues efforts to track ‘black money’ that is the result of illegal dealings and tax evasion. Israel is also a leader in efforts to limit the amount of a cash transaction and the nation is moving ahead rapidly towards digital cash, which is far easier for government agencies to track.

The Knesset this summer approved working with America’s Foreign Account Tax Compliance Act (FATCA), and the law was to go into effect in Israel on 17 Elul (September 20th) but the High Court placed that on hold pending the appeal, which has been rejected.

Privacy issues aside, the new law has been the cause of grief for some, who report banks do not wish to open new accounts for persons with dual Israeli/American citizenship while in other cases there are issues with accessing one’s account.

(YWN – Israel Desk, Jerusalem)