Recently, the Tax Authority’s intelligence department began sending tens of thousands of 5329 forms to Israeli citizens. This form, entitled “Personal Data Report and Statement of Income Sources in Israel and Abroad” is sent as far as possible to citizens who are monitored or audited by the tax authorities following one or more of the following situations:
1. Real estate investors – Citizens who own more than one apartment but have not reported rental income to the tax authorities.
2. Permanent travelers – Citizens who are abroad for more than 90 days in a calendar year and therefore are suspected of having income or assets abroad that have not been reported.
3. Bank account holders who have carried out business operations – Citizens who own a bank account in which transactions were carried out that may constitute transactions that are not reported to the tax authorities.
4. Civilians who have denounced them – citizens for whom information was received by the tax authorities through the “line of justice” and the information received is not appropriate to that reported to the Income Tax Authority.
In recent months, those who did not respond to the first demand have received “reminder letters,” and recently published that the Tax Authority intends to use civil and even criminal means against those who do not respond to the information demand.
It is important to understand that incorrect filling or non-fulfillment of the form constitute a criminal offense punishable by imprisonment. The form is very short, only one page, but it is important to fill it carefully and meticulously while receiving professional advice. For example, it is necessary to fill in the form with information about all sources of income, bank accounts, assets, including real estate, companies and businesses owned by that citizen and his spouse.
If you, your friends or family, have received Form 5329, do not hesitate to contact us today for your first free consultation.
For more information read the detailed return on this issue from September 2014