As a rule, offenses concerning the Income Tax Ordinance and the Value Added Tax Law are referred to as “tax offenses”, as there is distinction between technical tax offenses and material tax offenses. The difference between the types of offenses is the criminal intent at the base of committing the offense.

 

Technical tax offenses are more common and include offenses such as failure to file an annual report or annual financial statements or declaration of capital on time, or failure to transfer taxes deducted pursuant to the Income Tax Ordinance and failure to withhold at origin.

 

Material tax offenses are more severe and include tax evasion, omission of income, false bookkeeping and filing false reports. Offenses concerning the Customs Law and the Customs Ordinance include failure to report of funds or products upon entering the country and which are required to be reported to the Customs Authorities and payment of import duties.

The severity of punishment and risks

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Due to technical tax offenses, the penalty set forth under law is up to one year’s imprisonment in practice depending on the circumstances. Should the omissions due to which the indictment had been filed be amended, instead of imprisonment in practice, usually a sentence of probation will be imposed as well as a financial penalty or an administrative penalty. The punishment for material tax offenses is up to 5 years’ imprisonment and under aggravating circumstances up to 7 years’ imprisonment in practice.

Violation of the customs’ provisions bona fide may lead to criminal proceedings and a maximal penalty of up to six months’ imprisonment or a high financial penalty. The maximal penalty for failure to report intentionally, is 3 years’ imprisonment or high fines.

Legal advice by the best – Sharon Nahari & Associates Criminal Defense Law Firm

Are you suspected of customs or tax offenses, or have you been summoned for a hearing prior to filing an indictment for such offenses? You are welcome to contact the Sharon Nahari & Associates Criminal Defense Law Firm, which specializes in handling offenses within the tax domain – customs and excise offenses, income tax, tax offenses and purchase tax offenses. As part of the quality legal services, you will be given personal assistance and tight accompaniment throughout the investigation proceedings, representation in detention procedures, voluntary disclosure proceedings as well as management of the case and representation in court.

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