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October 28, 2016 / 26 Tishri, 5777

Posts Tagged ‘Finance Ministry’

All-Time High Israeli Tax Collection: $57 Billion So Far in 2016

Monday, October 10th, 2016

Over the first 9 months of 2016, the Israeli tax authority has collected an unprecedented 216.1 billion shekel, or about $57 billion, a full 5% more than during the same period in 2015, the Finance Ministry’s Accountant General’s Management Information Division reported Sunday. In fact, in September 2016 alone Israel has collected $6.67 billion, 12.3% more than in September 2015.

According to the report, tax collection has far surpassed early forecasts at the Finance Ministry, so much so that the Finance Ministry’s Chief Economist Yoel Naveh in mid-July pushed up the 2016 forecast and set it at 282.5 billion shekel, or $74.5 billion.

The new, record tax collection is expected to impact the government budget deficit. The 2016 budget permits government a deficit of 2.9% of GNP, or as much as $9.23 billion. But based on the tax collection bonanza, it appears government could go on a mad spending spree, especially on security, and still end up with only a 2% of GNP deficit. The accumulating government deficit over the past 12 months stands at only 2.2% of GNP.

Overall, government expenses in September stood at $8.05 billion, out of which expenses came up to $6.7 billion, interest payments on the national debt was $500 million, and interest and repayment of principal to Social Security came to $820 million.

Since the beginning of 2016, government expenses came to $55.28 billion, a 7% rise compared with the same period last year. Of that, civil ministries’ expenses rose by 8.9%, while the security apparatus showed more restraint with only a 2.2% rise in spending. The original budget plan, however, called for an 11.4% rise for civil services, while the security apparatus was actually scheduled to go down by 3.7%.


UN Report on Failed Gaza, PA Governments: It’s All Israel’s Fault

Monday, September 5th, 2016

If a visitor from outer space were to read the new Report of the “United Nations Conference on Trade and Development assistance to the Palestinian people: Developments in the economy of the Occupied Palestinian Territory” to be issued Tuesday, they would have walked away with an image of a nation of industrious, democratic, peace-loving people named the “Palestinians” who are intentionally and on a daily basis prevented from thriving and achieving the economic success they so richly deserve by a cruel and capricious Israeli occupation that sets out to torpedo every shred of goodness those peaceful folks manage to sustain.

This horrifying image is only enhanced by the fact that this report comes from the principal organ of the UN General Assembly dealing with trade, investment, and development issues. The organization’s goals are to: “maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis.”

With that in mind, here is the opening paragraph of the Executive summary of the UNCTAD report, meaning the gist of whatever else comes below:

“In 2015, Israel withheld Palestinian fiscal revenue for four months, donor aid declined and Israeli settlements continued to expand into the Occupied Palestinian Territory, while poverty and unemployment remained high. The Occupied Palestinian Territory continued to be a captive market for exports from Israel, while occupation neutralized the potential development impact of donor aid. Genuine reconstruction has yet to take off in the Gaza Strip despite $3.5 billion in donor pledges. Gaza’s socioeconomic conditions worsened and the infant mortality rate increased for the first time in 50 years.”

It’s an executive summary, so one cannot argue that so many of these assertions are being lumped together out of context. And yet, for a report that should provide an overview of the economic and social situation in the PA and Gaza to cite the withholding of revenues without mentioning that Israel was forced to freeze those funds after the PA had accumulated half a billion dollars in unpaid electric bills; and for the same executive summary to make the construction of a smattering of Jewish apartment units as a top-level cause for Arab decline — signals the point of view and general inclination of the authors.

You’re welcome to read the entire report if you wish. We went looking for those items that best reflect how the report turns facts and figures on their head to come up with the preconceived conclusion: it’s all the fault of the Israeli occupation, and once Israel is out of the picture you’ll see how those Palestinians will become Switzerland of the Middle East.

UN Blames Israel for Unemployment

Take, for instance, item 5, dealing with Arab unemployment. In 2015, the unemployment rate in the “Occupied Palestinian Territory” was 26%, compared with 12% in 1999.

What happened in 1999? Well, for some unknown reason, there was an Israeli “tightening of restrictions on movement and access of Palestinian labor and goods.”

What a capricious, wicked nation those Israelis must be. Of course, 1999-2000 marked the eruption of the second intifada, which made the current plague of shooting, stabbing, car ramming and stone and firebomb throwing look like a day at the fair. Israeli employers were done with hiring Arabs from the PA and Gaza who would turn on them one morning and slash their throat, thank you very much. Israel imported foreign labor from Asia, and other migrants started cutting through the border illegally in the Sinai, and the Arabs were pushed out of the Israeli labor market. God is in the context.

UN Blames Israel for PA Arabs Wanting to Work for Israelis

Next, the report offers a blatant lie (Item 6): “Lack of employment opportunities in the domestic economy forces thousands of unemployed Palestinians to seek employment in Israel and in settlements in low-skill, low-wage manual activities.”

The reality is that those “lowly” jobs in Israel pay three times what the average job pays inside the PA, and if Israel only issued more work permits, those PA Arabs would have gladly abandoned their lousy jobs in Ramallah and Shechem and flooded Israel’s construction sites.

But the report is unhappy with the fact that as many as 12% of the PA Arabs find decent employment in Israel, because, let’s face it, “this forced dependence on employment in Israel and in settlements magnifies the vulnerability of the Palestinian economy to political shocks, as Israel can at any time bar Palestinian workers, even those with Israeli permits, from entering Israel and settlements.”

On that assertion, there is one surefire way to make sure Israel would never, ever bar those workers and take away their permits: if Arabs from the PA not start shooting, stabbing, car ramming and stone and firebomb throwing. It’s a scientific correlation, proven by 50 years of Israeli presence in Judea, Samaria and Gaza: Arab violence leads to Arab poverty; Arab civility leads to Arab prosperity. It’s such a simple message, one must attend many anti-Semitic incitement sessions at one’s local mosque to be able to ignore it.

Israel’s Response to Arab Terror and Illegal Construction Harms the PA Economy

Here’s Item 9, which does not belong in an economic report, because it covers a negligible issue in terms of costs to the Arab economy, but it’s there to make a political point, and tell another lie: “In April 2016, the Secretary-General of the United Nations advised the Security Council that demolition of Palestinian homes and businesses in the West Bank was continuing at an alarming rate.” How alarming? “By early April, the number of Palestinian structures demolished had exceeded the total of those destroyed in 2015, displacing 840 people.”

Israel demolishes Arab homes in Area C for two reasons: illegal construction, and participation of one of the occupants in a terror attack. In terms of numbers, the vast majority of the structures are destroyed for lack of building permits. Israel is the recognized sovereign in Area C, according to the Oslo accords, and you can’t defy the sovereign power by building whatever and wherever you want. But Israel also demolishes Jewish structures in Area C, for a variety of legally contested issues, a fact that is completely ignored by the report which prefers to repeat the mantra that Israel demolished those Arab homes “while accelerated settlement activity created facts on the ground.”

Now, what was the economic effect of those 840 demolitions on the PA, whose citizens reside in Areas A and B? Probably negligible, but a point scored is a point earned.

In Item 14, UNCTAD supports the World Bank’s assessment of a problem they named “the Palestinian fiscal leakage.” What it means is that while the Arab earnings are meager and sub-standard in the PA, the PA Arabs working in Israel make triple those wages and get to keep a lot more after taxes, some of which Israel transfers to Ramallah. But the World Bank and now the UNCTAD want those PA laborers in Israel to pay higher taxes, which would go to their government. Indeed, Israel has promised to collect and transfer to Ramallah “$128 million to cover some of the losses accumulated over the years by the Authority.” That money, as the Israeli Finance Ministry explained to the Knesset Finance Committee this summer, will be coming out of the wages of PA Arabs working in Israel.

UN Blames Israel for Gaza’s Internal Problems

Now we get to what the report names, “Slow reconstruction in Gaza and disregard for the productive base.”

It has been documented by every major news outlet and at least two recent court cases in Israel that Hamas has completely usurped the $3.5 billion in donations for the digging of new terror tunnels and for rebuilding Hamas leaders’ homes destroyed in the 2014 war. It is also understood by most rational people in the world that as long as the Gaza Strip is governed by a terrorist organization whose major stated aim is to destroy the Jewish State, Israel has no choice but to impose a blockade on the free flow of goods into Gaza, because those goods would inevitably be used to prepare for the next attack on Israel.

Not on planet UNCTAD.

Item 22 states without benefit of context or recognition of regional realities: “Israel’s blockade of Gaza, in its ninth year, continues to exert a heavy toll. The population of Gaza is locked in, denied access to the West Bank and the rest of the world. … The blockade has affected Gaza’s once vibrant export sector.” Ah, those capricious Israelis and their obsession with not getting killed.

UN Report Straight Out Lies

The same item adds a nasty line: “Even people in need of medical treatment are not allowed to travel to obtain essential health care.” The author of this blatant lie should come visit Israeli hospitals in Ashkelon, Ashdod and Beer Sheva, where Gazan patients are a regular feature, including family members of top Hamas officials.

Israel Refuses to Be Annihilated

Item 23 is also about Israel’s refusal to be annihilated: “A prominent element of Israel’s restrictions on Palestinian productive activities is the dual-use list, which prohibits the importation of civilian goods deemed by Israel as potentially having other, harmful uses. The list includes essential factors of production, raw materials, agricultural fertilizers, telecommunications equipment, steel, pipes, spare parts and other capital goods.”

Yes, because Hamas engineers have skillfully turned all those highly useful items into highly murderous weapons.

The same item complains that “recently, more items have been added to the list, and the thickness of wood classified as dual-use has been reduced from 5 to 3 cm, then to 1 cm. This has far-reaching implications for Gaza’s furniture industry, among other harmful effects. Enforcement of the stringent dual-use restrictions obstructs reconstruction efforts, raises production costs and forces Palestinian firms out of business.”

Again, let Hamas officially abandon its murderous designs on Israel, let it sign a document recognizing Israel’s right to exist and watch how the Gaza Strip becomes paradise in a month. The fact is, with the right investments and without the Islamic extremists’ threat, Gaza could become as pretty and as prosperous as Sad Diego. Parts of it already are, even today.

UN Blames Israel for Gaza’s Now Rising Infant Mortality Rate

Item 25 is a tour de force of convoluted logic: “A shocking indicator of the grim situation in Gaza is the rising infant mortality rate, one of the best indicators for the health of a community. Infant mortality has risen for the first time in 50 years. The rate of neonatal mortality has also risen significantly, from 12 per 1,000 live births in 2008 to 20.3 in 2013.”

The sad truth is that Israel was investing in Judea and Samaria and Gaza infrastructure and social services to the point where they exceeded the standards in all other Arab countries. It is safe to say that had Israel continued to run those territories, today they would have been its equal in terms of social services and levels of income.

The relatively low baby mortality cited for Gaza in 2008 did not appear out of thin air — Israel, that hated occupier, pushed it on with heavy investments and years of government effort. The progressive decline in both parts of the Arab-run territories is not the result of “the occupation,” but of the utter failure of local Arab governments to manage modern state systems. We can illustrate this point:

On June 16, 1994, the Israeli Civil Administration in the Territories issued a report comparing the state of the Arab infrastructure in Judea, Samaria and Gaza in 1970 with 1990. According to that report, in 1970 Gaza had 3 community clinics. In 1990 there were 28. Each of the Israeli built Community Clinics in the Gaza Strip offered mother and child health services, family care units, and pharmacies. Several of the centers offered 24-hour a day delivery units and emergency services, and minor x-ray units.

Major renovations and/or additions were made to almost every hospital in Judea, Samaria, and Gaza since 1967. Thus, for example, Rafidiah Hospital in Shechem received a radiology center in 1987 and an out-patient department in 1988. Wattani Hospital in Shechem received an intensive care unit in 1987. Ramallah Hospital received a diagnostic radiology center in 1987 and a neo-natal and premature intensive care unit in 1986. Beit Jala Hospital received a radiology center in 1987. Hebron Hospital received an outpatient and laboratory wing in 1988. The Bethlehem Mental Hospital received a chronic care department for male patients in 1986. The dialysis department at Shifa Hospital in Gaza City was completely renovated in 1989. Khan Yunis Hospital’s surgical suite was refurbished in 1987. The Opthalmic Hospital in Gaza City was renovated and re-equipped in 1989.

And infant mortality in Gaza declined from approximately 85 deaths per 1,000 live births in 1968 to 26.1 in 1990. In Judea and Samaria, infant mortality declined from approximately 35 deaths per 1,000 live births in 1968, to 18.1 in 1991.

For comparison, in 1991 deaths per 1,000 births in Libya stood at 62, Egypt 82, Turkey 54, Iraq 66, Syria 37, Tunisia 38, Jordan 38, Lebanon 50 and Saudi Arabia 69.

Together with the decline in infant mortality, great progress was made by Israel in controlling and eliminating major childhood diseases, due mainly to immunization programs instituted since 1967. Twelve nursing schools, two of which offer BA degree programs were opened between 1971 and 1991. The numbers of both doctors and nurses more than doubled from 1967 to 1991.

Voluntary health insurance plans which were unavailable before 1967 were first offered in Judea and Samaria in 1973, and in Gaza in 1976. In 1978, a new comprehensive plan was introduced; it was automatically applied to Civil Administration workers and to area residents working in Israel and was offered to all other area residents on a voluntary basis.

Israel greatly improved and expanded sewage treatment facilities in the liberated areas. Before 1967, there were no sewage treatment plants in Judea and Samaria. Since 1967, modern installations were built in Jenin (1971), Tulkarem (1972), Ramallah (1979), and Kalkilya (1986). The first stage of the Hebron sewage treatment plant was completed in 1991. In Gaza, sewage was managed through local septic tanks. Since 1967, treatment facilities were improved and/or constructed in Gaza City, Khan Yunis, Jabalya, Rafiah, and the Shati refugee camp. Routine testing of sewage for various enteric bacteria was begun in 1981.

Judea and Samaria were recognized as malaria-free areas in 1971.

UN Report Blames Israel for Palestinian Authority’s Failure in Self-Government 

Item 37 in the UNCTAD report unwittingly makes this point: “Palestinian economic indicators have deteriorated in the last two decades, with serious ramifications for the welfare of the Palestinian people. In 1995-2014, the population grew by 3.6 per cent annually, while real GDP per capita grew by only 1 per cent. In addition, productivity failed to grow and unemployment increased by 9 percentage points to 27%.”

What else happened between 1994 and 2014?

Yes, governing of Judea, Samaria and Gaza was handed over to the local Arab leadership, which proceeded to mess things up while inciting to violence against the only country on earth that actually took the trouble to help them. With numbers like these, and the report heaps them in multicolored tables, the Arab record of self-government is nothing short of abysmal.

Naturally, UN reports that tell the world these failed regimes aren’t to blame, it’s all Israel’s fault, are not helping anyone, least of all the local Arabs who by now are telling survey takers openly they would rather live under Israeli rule or escape to Canada, whichever comes first.


Ahmad Tibi, Yisrael Beiteinu, Cooperating to Protect Arab Workers from Unjust Taxation

Monday, August 15th, 2016

Joint Arab List MK Ahmad Tibi, political advisor to Palestinian Authority Chairman Yasser Arafat from 1993 to 1999, and PLO representative at the 1998 Wye River negotiations, is not a politician one easily imagines in cahoots with MK and former Navy officer Oded Forer (Yisrael Beiteinu). But last week, at a meeting of the Knesset Finance Committee, the two legislators supported each other’s arguments, even though those arguments were diametrically opposed.

At the meeting, the Finance Ministry requested the Knesset’s approval for a rule that was described as aimed at strengthening economic cooperation with the Palestinian Authority regarding the employment of PA Arab workers. As reporter Zeev Kam of Makor Rishon put it, the rule sounds innocent enough. But, of course, the devil is always in the details.

There are three categories of PA Arab employees: those who work in the PA, those in the Jewish communities of Judea and Samaria, and those who work inside “greenline” Israel. Workers in the latter two categories earn on average three times what their brethren working inside the PA do. This has to do with the fact that Israelis in and out of the greenline just pay more reasonable salaries, but also with the fact that Israel endows these workers with certain tax benefits.

And those tax benefits are what the Israeli Finance Ministry is after, seeking to match the tax rates of PA Arabs working inside and outside the PA. The estimate is that by cutting the tax benefits, the PA stands to earn about $45 million a year — taken from the PA Arabs who are lucky enough to qualify for work for Israeli employers.

Why would Israel be so invested in taking money away from the only PA Arabs who still have something good to say about it, and give it to the PLO, who will spend this money dragging Israel through the mud in international forums? The two representatives of the Finance Ministry at the Knesset Finance Committee explained that the World Bank has recommended the move to impose the same tax rate on all PA Arab workers, regardless of where they work.

Mind you, it took the MKs some time to decipher the financial mumbo jumbo heaped on them by the two civil servants, but in the end, both Tibi and Forer were equally outraged, each for his own reason, and both supporting each other in the strangest example of political bedfellowship.

MK Tibi was annoyed that instead of forcing Israel to pay up the PA tax money it has frozen for a variety of reasons (the PA’s awarding stipends to terrorists’ families, the PA owing the electric company half a billion dollars), the Finance Ministry would simply charge the most vulnerable workers. He was also upset at the fact that when seeking to equate the pay of PA Arabs making $400 a month and those making $1,300 a month, the financiers decided to cut everybody down closer to $400.

Tibi, an obstetrician, suggested bitterly that since there are hospitals in the PA that provide inadequate treatment, “using the same principle a Palestinian patient being treated in an Israeli hospital, instead of receiving two infusion bags should receive only one, to make it even.”

MK Forer said he was at his wits’ end trying to understand the Israeli concern for the welfare of the Palestinian Authority. “There are about 70 thousand Palestinian workers with permits in Israel,” he said. “Out of those only one was involved in a terror attack. Which points to the fact that these people really come here to earn their bread. And you now wish to take more taxes from them, not to fund positive activities, but so the money would go to the Palestinian Authority. And what does the PA do with these monies? Pay those who are in prison for security violations.”

“Finally,” Forer said, “taking the example of a plant in [the Samaria Jewish community of] Barkan, a Palestinian who would sell the Israeli merchandize produced in Barkan would suffer severe punishment according to Palestinian law, imprisonment and fines.” In other words, Israel sets out to cut the income of a PA Arab who supports Israeli products, and give the money to the PA which boycotts the same products.

According to Kam’s report, the attempt on the part of the Finance Ministry to sabotage Israeli relations with PA Arabs to support a hostile PA died in committee.


A First: Kibbutzniks to Pay Personal Income Tax

Thursday, August 4th, 2016

Individual kibbutz members will be required to pay a 25% personal income tax as well as the Social Security Healthcare tax starting next January, according to a move by the Finance Ministry, Israel Hayom reported Thursday. The new taxes are expected to enrich the Finance coffers by close to $80 million annually, and the Social Security income by about $50 million.

Since the beginning of communal history, each kibbutz used to pay a corporate tax for all the members, and even after the change in taxation kibbutz members without outside income will not be required to file individually. But over the past few decades many kibbutz members have been working off the kibbutz grounds, contributing a portion of their income to the cooperative — and the Israeli tax authority would like to take a peek at those monies.

The Finance Ministry’s new rule must still go through the Knesset Finance Committee for approval, and the agricultural lobby is expected to put up a hard fight against the changes.

Amitai Porat, the Religious Kibbutz Movement Secretary General, and Nir Meir, the Kibbutz Movement Secretary General, on Wednesday wrote Prime Minister Netanyahu requesting that he halt Finance Minister Moshe Kahlon’s proposed changes in the tax code regarding kibbutzim. They told the PM that “Minister Kahlon is not interested in meeting us to find a solution that would make it possible to reexamine the tax code while maintaining and protecting the kibbutz character and the communal life in which we believe.”

David Israel

Airport Union’s Unique Strike Threat: Shabbat Observance

Thursday, August 4th, 2016

The Airports Authority Employees’ Union announced Thursday that they intend to observe Shabbat laws at Ben Gurion International Airport from dusk Friday until dark Saturday night. The strike was declared in protest of the Finance Ministry’s plan to take about half a million dollars in royalties from the airport authority. The union declared that the airports authority is not the cash cow of the state of Israel, and if the authority has been sitting on money the workers had been unaware of, it should use it to absorb the thousands of contract employees who are currently working without benefits.

A senior union member told Walla Thursday that the workers were enraged by the Finance Ministry’s decision to pull the funds, because “it’s clear to us that withdrawing the money will result in budget deficits at the authority, leading to mass layoffs.” He added that it looks like “the Finance Ministry wants to pay the costs of the government’s coalition agreements out of the Airport Authority’s money.”

According to the union, the Shabbat protocol will permit landings of already scheduled flights from abroad, but no takeoffs. But should the Finance Ministry not change its plan, further disruptions will follow.

This unusual, albeit partial observance of Shabbat laws comes at one of the busiest seasons at Ben Gurion International, with tens of thousands of Israelis leaving on their vacations every day. Last August saw the breaking of all time records, with more than two million passengers on international flights going through the airport.


Bill Approved to Increase Competition in Israeli Financial Sector

Monday, August 1st, 2016

By Michael Zeff/TPS

Jerusalem (TPS) – The Israeli government unanimously approved legislation to increase competition in the Israeli financial sector on Sunday.

According to a Finance Ministry spokesperson, the legislation aims to shatter the current banking sector oligopoly by allowing new players to enter the financial and banking sector thus increasing market competition.

“The problem with Israeli banks is that they all suffer from a lack of efficiency in costs, which is necessarily rolled on to the consumers of their financial services,” Professor Omer Moav, an economics expert at the University of Warwick, told Tazpit Press Service (TPS). “Competition can help that. Allowing foreign banks to offer services, even through the Internet for example, will decrease costs and increase efficiency.”

The bill was proposed by Finance Minister Moshe Kahlon and is an implementation of recommendations made by the Committee on Increasing Competitiveness in the Economy. The committee was formed by Minister Kahlon and the Central Bank of Israel (CBI) in order to find legal ways to increase competitiveness and efficacy in the otherwise concentrated and cartelized Israeli banking system.

“The changes mandated by this law, mainly the recommendation to separate the banks from the credit companies, will create an advanced banking system and more competitiveness in the retail and small business fields in the upcoming years,” said CBI Governor Karnit Flug.

The main clauses of the bill include a separation of the major Israeli banks from Israeli credit companies. The three largest Israeli banks also currently own and operate the credit card companies.

The three banks, Hapoalim, Leumi, and Discount, together control about 75% of credit in Israel. The new law will force Hapoalim and Leumi at the least to sell their existing credit card companies.

In addition the new law will provide certain protections and incentives for potential new actors to enter the Israeli market, such as more flexible regulations to help them compete with the major banks.

“The bill also includes a pathway to the establishment of entirely new Israeli banks, better oversight on existing banks and on their competitiveness, the creation of new and improved databases for credit card companies, and the advancement of technology and innovation in local banks,” Governor Flug elaborated.

However, the measures proposed by the bill have been previously criticized by the International Monetary Fund (IMF) of which Israel is a member.

According to the IMF, the government committee that provided recommendations for the bill used old data in its analysis thus rendering the basis of the reform faulty and potentially harming the stability of the entire system.

While Flug and the CBI supported the bill and helped shape it to a large extent, Flug cautioned the government to implement the law responsibly. “An increase in the number of banks and financial brokers that are not banks means a higher risk of collapse,” she contended.

TPS / Tazpit News Agency

Knesset Committee Approves Submission to US IRS Tax Compliance Act

Tuesday, July 12th, 2016

After weeks of debates, on Monday the Knesset Finance Committee approved a bill to apply the Foreign Account Tax Compliance Act (FATCA), which the US has already signed with 113 countries. The 2010 federal law enforces the requirement for US citizens living abroad to file yearly reports on their non-US financial accounts to the Financial Crimes Enforcement Network (FINCEN). The law also requires all foreign financial institutions (FFIs) to search their records and to report the assets of US citizens living abroad to the US Department of the Treasury.

Finance Committee Chairman MK Moshe Gafni (United Torah Judaism) was able, after lengthy negotiations with the Israeli Finance Ministry, to increase the protection of Israeli citizens whose information will be handed over to the US, and reduce in half (from about $27 thousand to about $13 thousand) the sanctions against financial institutions that fail to comply with new law for technical reasons. Gafni also managed to change the definition of charity organizations in the Haredi community (Gmachim), changing their definition from “financial institutions” to “organizations that benefit the public,” thus removing them from the FATCA zone.

The committee also succeeded in repelling the Israeli tax authority, which wanted initially to be able to use information gathered by Israeli banks for FATCA to their own local tax collection ends. As Gafni put it, “This is a bad law, and to come now and use it for other purposes that have nothing to do with its essence would be unthinkable.”

The issue of forcing foreign financial institutions and foreign governments to collect data on US citizens at their own expense and transmit it to the IRS has been attacked outside Israel as well. Former Canadian Finance Minister Jim Flaherty objected to the law’s “far-reaching and extraterritorial implications” which require Canadian banks to become extensions of the IRS and could jeopardize Canadians’ privacy rights.

There have also been reports of many foreign banks refusing to open accounts for Americans, making it harder for Americans to live and work abroad.


Printed from: http://www.jewishpress.com/news/breaking-news/knesset-committee-approves-submission-to-us-irs-tax-compliance-act/2016/07/12/

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