Government Ditches New Financial Disclosure Requirements for Immigrants

YERUSHALAYIM -

The Immigration and Absorption Ministry has concluded a quiet but effective lobbying campaign to preserve the 10-year grace period for new immigrants to disclose foreign financial assets, The Jerusalem Post reported on Wednesday.

A new regime that would have required that immigrants make such disclosures within a period of one year was struck from the economic arrangements bill on Wednesday.

However, it was agreed that a professional committee will be established to recommend  a new policy with the tax authority that facilitates compliance with international standards of financial disclosure without discouraging new and returning immigrants from coming to Israel.

The proposed changes in the law reflect a broader trend in which the authorities in the U.S., Israel and Europe are cracking down on tax evaders and money launderers.

As of last year, for example, Israeli banks were required to divulge information to American regulators on any of their bank account holders who are U.S. citizens.

Americans in Israel who were caught not reporting their account information back in the U.S. were liable to face severe penalties.