Major Offenses
Israeli tax law imposes criminal penalties for: failure to file a return (up to 1 year prison), omission of income (up to 7 years), false entries in books (up to 5 years), issuing fictitious invoices (up to 5 years), and money laundering related to tax evasion (up to 10 years).
Voluntary Disclosure
The ITA's voluntary disclosure program allows taxpayers to report previously unreported income while avoiding criminal prosecution. The taxpayer must pay the full tax, interest, and linkage, but criminal charges are not filed. The program requires full and honest disclosure initiated by the taxpayer before any investigation has begun.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.