The Israeli Finance Committee is belatedly dealing with the issue of the Israeli banks’ reporting obligations under the OECD bank account reporting requirements.
The OECD’s CRS (Common Reporting Standard) agreement requiring Israeli banks to verify their clients’ tax compliance in their country of residence takes effect January 2018. Israeli banks will be required to report the existence of these accounts to the country of the client’s residence. This mirrors the previous American FATCA rules requiring financial institutions around the world to report on the accounts of US citizens to the US authorities.
In order to allow the Israeli banks to implement and comply with the CRS reporting process, the Knesset must first enact legislation with regulations, which have not yet been finalised. At this late stage of the game, it is clear that the Israeli banks will be overwhelmed with the task of contacting all their clients, obtaining the required tax declarations from them, and implementing the internal reporting systems before the deadline of 31st December 2017.
We are advising all our clients and prospective clients to ensure that their personal tax & compliance affairs are all in order to facilitate their bank’s dealing with their accounts amidst the turmoil that is sure to come.
If you require assistance with your international wealth management please call our offices +972-2-992 1519 or email [email protected] to arrange an appointment with Philip Braude.
Click here to read the Globes article Finance Committee to discuss OECD bank account international reporting.