May 5, 2020
Adv. Doron Levy, head of our Tax Department and Senior Partner, and Adv. (CPA) Racheli Guz-Lavi, partner in our Tax Department, explain that the “data published is misleading and problematic”. The real reason for the minor decrease lies in the fact that typically, the first phase of a recession is characterized by a lack of investment and renewal of inventories by businesses. As a result, input tax returns sharply decline, and the net collection of indirect taxes, a major component of tax collection, appear to be high (or, there appears to be a minor decline in tax collection). Lack of investments and the non-renewal of inventories will lead to a sharp decline of VAT collection and a sky-high deficit in tax collection”.
For the full article in Hebrew, please click here.