Tax Advisory and Planning for Companies and Individuals

For most companies and individuals in Israel, income tax (together with National Insurance and VAT) is the heaviest expense on the profit and loss statement. Despite this, many treat tax as "fate" and only address it after the fact, when filing the annual return. This is a mistake that costs a fortune. The absence of tax planning, or deficient tax planning, leads to unnecessary overpayments, loss of tax benefits, and in extreme cases – criminal exposure due to transactions structured artificially or reported negligently. The line between "legitimate tax planning" and "tax evasion" is thin, and the Israel Tax Authority is equipped with technology and intelligence to detect irregularities.

Israeli case law has explicitly established: "A person has the right to plan their steps in order to reduce the tax burden." Effective tax planning is the intelligent use of tools provided by law:

• Leveraging benefits and incentives: Capital investment encouragement laws, benefits for preferred/technological enterprises, tax credits, and social contributions.

• Proper corporate structure: Choosing between operating as a sole proprietor, a limited company, a personal services company, or a partnership, based on turnover and objectives.

• Timing of tax events: Deferring income recognition or accelerating expenses (within the bounds of the law) to create positive cash flow. The challenge is clearing the hurdle of Section 86 of the Ordinance (artificial transaction) – namely, proving that the tax plan also has a genuine commercial purpose, and not merely a desire to reduce tax.

We analyze your business and personal activities from a Holistic View to build a long-term strategy. Our expertise combines mastery of the intricacies of local and international legislation together with practical business understanding. We know how to structure transactions that will "hold water" before the Assessing Officer, while maximizing the profit that stays in your pocket at the end of the day. Our goal is to transform taxation from a barrier into a growth engine.