Tax Offences · Legal briefing
Tax Composition Payments & Prosecution
By Adv. Yechiel Rachamim Menahemov & Adv. Assaf ShpigelPublished:
The practical dilemma
Undeclared income or improper deductions raise the prospect of a criminal case. Is a composition payment available?
The legal position
Income Tax Ordinance section 221 and VAT Law section 121 allow the competent authority to accept composition under statutory conditions and with the person’s consent. After indictment, prosecutorial consent is also required as specified. This is discretionary, not an entitlement offered to every suspect. Composition is not a conviction, but does not erase civil tax, interest, penalties or lawfully retained information. Official source 1 Official source 2
Your next step
Assess the evidence and civil consequences before an application containing admissions. Document circumstances, remedial steps and financial position. Compare alternatives without assuming payment resolves every issue.