Study: Most Israelis Complying With Cash Restrictions
A study by the Tax Authority indicates that 84% of Israelis are complying with rules against using cash to make large purchases. The Authority said that there were 3,392 violations of the law since it went into effect in February 2019, amounting to NIS 51 million.
According to the law, cash payments in deals with businesses of NIS 11,000 or more can constitute only 10% of the total payment; for a deal worth NIS 25,000, for example, the cash portion can be no more than NIS 2,500. The rest needs to be paid by check or credit card. Individuals who are not businesses can transfer up to NIS 50,000 between themselves.
The law includes penalties, including criminal charges, for violations, but the Authority has so far limited itself to warnings against offenders. The Authority said that between February 2019 and the end of January 2020, it had conducted 20,654 spot checks of money exchanges. The biggest violation was in a construction deal worth NIS 945,814, of which NIS 539,090 was in cash.
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