A risky idea
A number of Israelis with unreported money abroad have recently asked Bar-Zakay about transferring money to Dubai. He advises them that it is a “risky idea.”
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“Almost daily, I receive in my office people from all over the world, both Israelis and foreigners, who have realized that the banking system will not serve them so long as they do not report their accounts to the relevant tax authorities. Even someone who imagines he has found a place where no such questions are asked is liable to be surprised soon, ” warns Bar-Zakay. “The entire global banking system has decided in principle to verify that customers comply with the tax requirements of their countries of origin, and that will not miss places like Dubai. It will not help someone who closes an account or draws large sums of money and transfers it to Dubai.
“When attempting to fix a small problem, people tend to create a much bigger problem that is actually a serious criminal offense.”
Bar-Zakay says that the solution is to jump on the Tax Authority’s voluntary disclosure bandwagon as soon as possible. “It is possible to make voluntary disclosure and end the persecution. Many rich people conclude that should make the disclosure, especially when they think about their next generation. They ask themselves if they are bequeathing a gift or trouble to their heirs, because ‘death’ is not tax planning.”
Published by Globes [online], Israel business news – www.globes-online.com
