Income Tax Ordinance [New Version]

For the proper implementation of the Ordinance, the Minister of Finance may appoint a Director, assessing officers and other officers or other persons, all as required.

The powers of an assessing officer shall also be vested in the Director.

Where a person has been lawfully required, on at least two occasions with an interval of 30 days but not more than one year between them, to appear before an assessing officer and has failed to do so, and has not notified the assessing officer of a reasonable cause for his failure to appear, a judge or Registrar of a Magistrate's Court may, upon application by the assessing officer, issue an order requiring him to appear before the assessing officer at the time and place specified in the order.

A person appointed under the provisions of the Ordinance, or employed in its implementation, shall not be required to show to a court any return, certificate or assessment, or to disclose to the court or to inform it of any matter that came to his knowledge in the course of performing his functions under the Ordinance, except to the extent necessary to do so for the application of the provisions of the Ordinance or with the intention of prosecuting for an offence committed in respect of income tax, or in the course of the hearing of such a prosecution.

A person who has in his possession or under his control certificates, information, returns, assessment lists or copies thereof relating to a person's income or to a particular of his income, and who at any time communicated or attempted to communicate such information, or any part of the contents of the documents, to a person whom the Minister of Finance has not authorised him to communicate it to, or who communicated them otherwise than for the purposes of this Ordinance, is liable — to six months' imprisonment, or a fine of one hundred pounds.

For the purposes of sections 235b–235e —

"professional secret" — communications between a client and an advocate that have a substantive connection to the professional service rendered by the advocate to the client, whether made orally or in writing, including notes made by the advocate for his own use, provided they have a substantive connection to the professional service as aforesaid;

"confidential document" — a document containing a professional secret;

"court" — the District Court within whose jurisdiction the office of the advocate claiming privilege is situated;

"judge" — the President or the Acting President of the court.

Notwithstanding the provisions of the Bar Association Law, 5721-1961, an advocate is required, if so demanded by an assessing officer, to deliver to him any document in his possession and to allow him to examine and seize any such document and also to permit him to take any other action in connection with such a document, all in accordance with the powers vested in him under this Ordinance, but an advocate is not required to do so if he claims that the document is confidential.

"package" for this purpose — an envelope or other container.

"judge" for this purpose — including a District Court judge and a Magistrate's Court judge.

The following persons are authorised to represent taxpayers, and for this purpose, representation includes representation before a books acceptability committee:

this provision shall not derogate from the right of an advocate under the Bar Association Law, 5721-1961.

In calculating the amount of taxable income and every amount a person is liable to pay under this Ordinance, every amount shall be increased or reduced to the nearest complete lira.

The Director may prescribe conversion rules by which the income, taxable income, losses, expenses and tax payments of a taxpayer that originate outside Israel shall be translated into new shekels.

A special assessment period shall be designated by the number of the year of the 1st of April falling within that special assessment period.

Where the Trading with the Enemy Ordinance, 1939, or the Absentees' Property Law, 5710-1950, or any other law relating to trading with the enemy or with absentees, affects a person or any income or property, the provisions set out in the Second Schedule shall apply.

The Minister of Finance may make Regulations for the implementation of the provisions of this Ordinance, and in particular, Regulations with respect to –

The Minister of Finance may, by Order requiring Knesset approval by way of decision, amend the rates of deductions and credits specified in this Ordinance.

The Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe, with respect to sections 5, 29, 64a1 to 64a10, 67b to 67k, 68a, 75c to 75q, 75b, 85a, 91, 92, 100a, 102, and Part 10 Chapter III, required conditions and adjustments.

The participation amount payable to the assessing officer under section 6 of the Law for the Freezing and Reduction of Recreation Pay in 2024 for the Purpose of Budgeting Benefits for Reserve Soldiers, 5784-2024, shall be treated, for the purposes of the provisions under this Ordinance, as tax withheld at source under section 164 at the time at which recreation pay is paid to an employee in 2024, and in the case of an office holder to whom recreation pay is not paid in 2024 – at the time of payment of his salary in July 2024, and which is to be paid to the assessing officer under section 166; for this purpose, "office holder", "participation amount" and "employee" – as defined in that Law.

The participation amount payable to the assessing officer under section 5 of the Law for the Freezing and Reduction of Recreation Pay in 2025, 5785-2025, shall be treated, for the purposes of the provisions under this Ordinance, as tax withheld at source under section 164 at the time at which recreation pay is paid to an employee in 2025, and in the case of an employee to whom the full recreation pay as referred to in section 3(a)(2) of that Law has been paid, and in the case of an office holder to whom recreation pay is not paid in 2025 – at the time of payment of his salary in July 2025, and which is to be paid to the assessing officer under section 166; for this purpose, "office holder", "participation amount" and "employee" – as defined in that Law.