Income Tax Ordinance

The Assessing Officer

Where a person disputes an assessment, he may request the assessing officer, by a written notice of objection, to reconsider and amend the assessment; such a request shall set out precisely the grounds of objection to the assessment and shall be submitted within fifteen days from the date of service of the notice of assessment, provided that if it is proved to the satisfaction of the assessing officer that the person disputing the assessment was prevented from submitting the request within the said period because he was absent from the country, or was ill, or for any other reasonable cause, the assessing officer may extend the period to such extent as appears reasonable in the circumstances.

Upon receipt of the notice of objection referred to in Section 150, the assessing officer may require the objector to furnish him with all particulars that appear to the assessing officer to be necessary in relation to the income of the assessee and to submit to him all books or other documents in the objector's custody or possession that are relevant to that income, and may summon any person who in his opinion is able to give evidence in relation to the assessment to appear before him and examine that person on oath or otherwise, provided that an officer, agent or employee of the assessee or any other person employed in his affairs on the basis of personal trust shall not be examined except at the request of the assessee; nothing in this Section shall derogate from any power of examination under any other rule of law.

The burden of proof that the assessment is excessive shall lie on the appellant; however, if the appellant has conducted all the receipts and payments of his business in the manner and method directed by the Commissioner, the assessing officer shall be required to justify his assessment.

The court shall confirm, reduce, increase or vacate the assessment, or otherwise determine the Appeal as it sees fit, and notice of the chargeable income and the amount of tax which the appellant is required to pay — in accordance with the court's decision — shall be given to both parties.

A decision of the District Court under Section 156 is subject to Appeal before the Supreme Court sitting as a Court of Civil Appeals.

The Minister of Justice may make procedural Regulations in any matter relating to the lodging of Appeals under Sections 153–157 and the hearing thereof, including payment of court fees, provision of security, deposit with the court, and submission of evidence.

159. (a) An assessment, a payment Order, or any other proceeding purporting to be made in accordance with the provisions of this Ordinance shall not be cancelled, and shall not be regarded as void ab initio or as voidable, by reason of a formal defect, nor shall it be affected by reason of any mistake, defect or omission occurring therein, if it substantially and effectively conforms to what is stated in this Ordinance or in any Ordinance amending it, or to the intent and meaning thereof, and if the person assessed or about to be assessed or affected is designated therein according to the plain and ordinary meaning of the words.

And Dividends

Where a body of persons has deducted tax under Section 161(a) from interest or a dividend, and that interest or dividend, or any part thereof, is included in the income of the recipient, the tax so deducted shall be set off against the tax imposed on that income; in this Section, "tax" — excludes company tax.

Every person responsible for the payment of employment income or of income under Section 2(5), or of any other income which the Minister of Finance, with the approval of the Finance Committee of the Knesset, has prescribed by Order, shall deduct at the time of payment from the amount paid tax in the manner and at the rates prescribed; this provision applies also to the State.

[Deduction at Source]

The said deduction shall be set off against the tax imposed on the chargeable income of the recipient of the income in the tax year in which the deduction was made or in the following tax year, at the option of the Assessing Officer at the time of assessment or prior thereto.

A person who has deducted tax under Section 164 is liable to pay to the Assessing Officer at the time prescribed in the Regulations the amount of tax deducted and to submit to the Assessing Officer at that same time a return as prescribed.

156 Book of Laws 6 9th Iyyar 5721 — 25.04.1961

Assessing Officer

entitled to assess

deductions

A person upon whom the provisions of Section 164 are binding and who has not deducted tax as provided therein, or has not submitted a return as provided in Section 166, or has submitted such a return but the Assessing Officer has reasonable grounds to believe that the return is incorrect — the Assessing Officer may assess to the best of his judgment the amount of tax which that person was liable to deduct, and such assessment does not exempt that person from any other liability under this Ordinance; an assessment under this Section has the same effect as an assessment under Section 145.

A person who disputes the correctness of an assessment under Section 167 may, within two weeks, submit to the Assessing Officer a written objection, and the provisions of Sections 150–158 shall apply as if the objection had been filed under those Sections; the amount of tax determined pursuant to the assessment by an Order under Section 152(b) or on Appeal under Section 153 shall be paid within seven days of the date of service of the notice of assessment, or of the date of the making of the Order or the Judgment, as the case may be — or at such other time as is prescribed in the Regulations.

[Entitled to enter

premises, inspect

and investigate]

[Non-Resident]

Duty of the Deducting Party

from a Non-Resident

171. A person who has deducted tax under Section 170(a) is liable to pay to the Assessing Officer, within seven days of the date of deduction, the amount of tax deducted and to submit to the Assessing Officer a return in which he shall specify the name and address of the person to whom or on whose behalf the income was paid.

The amount of the deduction under Section 170 shall be set off — for the purposes of collection — against the tax imposed on the person who received the said income.

[Entitled to assess

the deduction]

A person who is liable under the provisions of this Sign to deduct tax and has not deducted the amount, in whole or in part, or has not submitted a return as provided in Section 171, or has submitted such a return but the Assessing Officer has reasonable grounds to believe that the return is incorrect, the Assessing Officer may assess to the best of his judgment the amount of tax which that person was liable to deduct, and an assessment under this Section has the same effect as an assessment under Section 145; such assessment does not exempt that person from any other liability under this Ordinance.

157 Book of Laws 6 9th Iyyar 5721 — 25.04.1961