Handling Tax Assessments and Representation before the Tax Authorities
Managing discussions and representing clients before tax authorities—Income Tax (IT), Value-Added Tax (VAT), and the National Insurance Institute (NII), including withholding taxes—is an integral part of the disputes that occasionally arise regarding tax payments in a regulated state. Every business in Israel is required to submit an annual report to the tax authorities, serving as the basis for calculating the taxes owed on the profits earned during the year. These reports are processed as self-assessments within the tax authorities’ systems, with taxes paid without in-depth review by the Income Tax Authority. As part of their routine operations, tax inspectors conduct audits on the financial statements submitted by businesses. These audits, referred to as tax assessment discussions, sometimes involve on-site visits, requests for computerized backups of the business’s bookkeeping system, and summoning the taxpayer or their accountant to the Income Tax offices for questioning and general discussions about the submitted reports and their reasonableness.
Our firm has extensive experience in managing tax assessment discussions and representing clients before the Income Tax Authority throughout Israel, offering professional representation based on in-depth knowledge of relevant laws and regulations, alongside extensive experience working with tax inspectors and officials nationwide. Typically, the parties reach an agreement resulting in a final tax assessment settlement, with efforts made to minimize additional tax liabilities. Signing a final tax assessment agreement significantly reduces the likelihood of future audits for the years covered by the agreement.
In addition to discussions with the Income Tax Authority, we also manage proceedings with other institutions such as the VAT Authority, focusing on discussions related to input VAT deductions and VAT transaction reporting, and the National Insurance Institute and Income Tax Withholding, focusing on employee withholding tax assessments.
Our firm, Michael Weizman & Co. – Consultants and Certified Public Accountants, brings over 25 years of experience in managing tax assessment discussions with the Income Tax Authority, VAT, and the National Insurance Institute. We ensure that these discussions are handled professionally, protecting the client’s interests and safeguarding their legal rights. Any tax assessment agreement will only be signed with the client’s full consent, following recommendations from our tax department based on the outcome of the discussions.
An accountant from our firm will be happy to assist you with this service. Contact us today for a no-obligation consultation.
