• Mon. Mar 4th, 2024

Tax Evasion Mechanism Delayed by Chamber of Auditors until 2025 amid ongoing war: Implications for Small Businesses

ByEditor

Feb 12, 2024
Auditors Chamber of Israel warns of ‘unprecedented actions’

The Chamber of Auditors has called for the Tax Administration to delay the implementation of a mechanism aimed at combating tax evasion and fictitious receipts until January 1, 2025. This was scheduled to take effect on April 1, 2024.

The Chamber believes that the delay is necessary due to the ongoing war, which has affected reservists and evacuees. Their businesses have already been severely impacted, and they cannot afford to deal with additional bureaucracy. The statement warned that unprecedented measures would be taken should the decision not be made to postpone the implementation of this mechanism.

The pre-reservation of tax receipts for transactions over NIS 25,000 was intended to help combat tax evasion and fictitious receipts. However, without a pre-reserved number, receipts will not be taken into account when writing off VAT. This would create an added layer of complexity for businesses already struggling due to the war.

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