Why Will Billionaire Roman Abramovich Not Pay Taxes in Israel?

If Abramovich receives the status of a new immigrant, he will not pay taxes for ten years on income abroad ■ Abramovich visited today the Israeli startup Stordot

Roman Abramovich visited today the Israeli startup Stordot

It all began in October 2009, when Hollywood businessman and filmmaker Arnon Milchan returned to Israel.

Before his return, his lawyer, Pini Rubin, convinced the tax authorities to amend the law that would allow new immigrants and returning residents to be exempted from paying tax for ten years on income abroad.

These immigrants are also exempt from tax in the country from which they emigrated. In most countries, the tax is determined on the basis of residency.

The law also provides an exemption from reporting requirement, an exemption granted in the framework of Israel’s 60th-anniversary celebrations.

Attorney Rubin argued that the amendment would help wealthy tycoons like Arnon Milchan return to Israel, which helped, and the law, called “The Milchan Law”, was enacted in 2008 and it was agreed that he would enter retroactively in 2007 – even though in practice retroactive legislation is Something very unusual in the tax world, and there is really no reasonable argument for legislation that is supposed to encourage immigration, for those who have already immigrated to Israel.

New Israeli Unicorn: 5-Min Charging Battery StoreDot Raises $60 Million at $500 Million Valioation

Today, nine years later, Israel is again dealing with a similar situation. The new immigrant, oligarch Roman Abramovich, the owner of the English football club Chelsea, does not need tax breaks – but he will win them.

If he does receive the status of a new immigrant, he will also benefit from the exemption, which is anchored in the law and allows for all active and passive income generated outside of Israel – whether it comes from capital gains from the realization of assets and investments outside of Israel, or from current income generated outside of Israel.

Although his fortune is estimated at $13.9 billion, Abramowitz will not be required to report his income abroad in the coming decade, and he will only have to pay for his income in Israel. It is doubtful whether there will be such revenues.

Russia: Abramovich has full right to receive Israeli citizenship

Meanwhile, Russian Prime Minister Dmitry Paskov on Tuesday referred to the Russian oligarch Roman Abramovich’s rise to Israel and said: “The Kremlin does not think about anything, and a businessman has full right to receive Israeli citizenship.” This is how they quoted Paskov’s laconic reference from a number of Russian media outlets a while ago.

One of the most popular business sites in Russia, RBK, mentions the difficulties in obtaining the British visa and states that obtaining the Israeli passport will give Abramovich access to almost 150 countries, including Britain. However, despite the speculation, it is not known at this stage whether Roman Abramovich received an Israeli passport in addition to his identity card and immigrant certificate.

Stordot

Roman Abramovich toured the Stordot company where he invested through his investment company Milhouse.

The company has raised $ 130 million to date, while Abramovich’s investment company is one of the company’s leading investors.

The company recently announced that it had raised $ 20 million from BP Energy. In addition to the investment, the two companies signed a strategic cooperation agreement in the field of rapid charging of electric vehicles.

Stordot has developed a lithium-ion battery that enables ultra-fast charging to an electric vehicle and industrial markets.

In addition, the company is developing a new type of electric car battery that will allow the car to be loaded in five minutes and travel about 300 kilometers, depending on the capacity of the battery.

Stordot is also expected to start selling super-fast batteries to mobile in early 2019, which it developed in cooperation with TDK of Japan.

Read more about: , , , ,

Email:

Delivered by FeedBurner