Government bill · 25th Knesset · published as law 12 February 2023
חוק לתיקון פקודת מס הכנסה (מס' 263), התשפ"ג-2023Law to Amend the Income Tax Ordinance (No. 263), 2023 · automatic translation · suggest a correction
Status: התקבלה בקריאה שלישית
Topics: Taxes* · * from the Knesset's official law classification
Official summary of the law (Knesset)
It was determined that Section 141(a) of the Income Tax Ordinance (requiring money changers to report to the Director transactions in an amount of NIS 50,000 or more) would be made a permanent provision. Accordingly, Section 195B(b) of the Income Tax Ordinance (imposing a monetary sanction on money changers who violated the reporting obligation), which was also set as a temporary provision, was anchored and made a permanent provision.
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Hebrew original
נקבע כי סעיף 141(א) לפקודת מס הכנסה (חובת דיווח של חלפני כספים למנהל על ביצוע פעולה בסכום של 50,000 ש"ח ומעלה) יוסדר כהוראת קבע. בהתאם, עוגן סעיף 195ב(ב) לפקודת מס הכנסה (הטלת עיצום כספי על חלפני כספים שהפרו את חובת הדיווח) הקבוע גם כן כהוראת שעה והוסדר כהוראת קבע.
Readings
- 30 January 2023 · First readingהצעת חוק לתיקון פקודת מס הכנסה (מס' 263), התשפ"ג-2023Bill to Amend the Income Tax Ordinance (No. 263), 2023autoBill passed first reading33 for · 2 against
- 8 February 2023 · Third readingהצעת חוק לתיקון פקודת מס הכנסה (מס' 263), התשפ"ג-2023Bill to Amend the Income Tax Ordinance (No. 263), 2023autoLaw passed23 for · 1 against
What was said in the plenum
The law makes permanent the duty of money changers to report to the Tax Authority on transactions exceeding 50,000 shekels, a provision that until now applied as a temporary provision and, according to its sponsors, contributed to the fight against unreported income. The discussion in the first and second-third readings barely addressed the content of the law itself, serving mainly as a platform for speeches on other topics - from opposition to the judicial reform to criticism of the government's conduct - with direct criticism of the law focusing on the legislative process and the identity of the committee that discussed it.
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Hebrew original
החוק הופך להוראת קבע את חובת הדיווח של חלפני כספים לרשות המיסים על עסקאות מעל 50,000 שקלים, הוראה שחלה עד כה כהוראת שעה ותרמה, לדברי מציעיו, למאבק בהון השחור. הדיון בקריאה הראשונה והשנייה-שלישית כמעט לא עסק בתוכן החוק עצמו אלא שימש בעיקר במה לנאומים על נושאים אחרים - מהתנגדות לרפורמה המשפטית ועד ביקורת על התנהלות הממשלה - כאשר הביקורת הישירה על החוק התמקדה בהליך החקיקה ובזהות הוועדה שדנה בו.
Arguments for
- The experience accumulated since the provision went into effect shows that it has made a significant contribution to the effectiveness of the Tax Authority's enforcement in the fight against unreported income and tax evasion, and therefore it should be made a permanent provision.Ohad Tal (Religious Zionism), Michal Miriam Woldiger (Religious Zionism)
Arguments against
- The law was passed not in the appropriate committee - the Finance Committee - but in the Committee for Public Projects, which has no interest in taxation matters, indicating disorder in the management of the Knesset's work procedures.Zeev Elkin (National Unity)
Who spoke (28)
| Member | Faction | Readings | Speeches | In the final vote |
|---|---|---|---|---|
| Ohad Tal | Religious Zionism coalition | Third reading | 1 | no record |
| Tatiana Mazarsky | Yesh Atid opposition | Third reading | 1 | no record |
| Pnina Tameno | National Unity opposition | First reading, Third reading | 2 | no record |
| Alon Schuster | National Unity opposition | First reading, Third reading | 2 | no record |
| Zeev Elkin | National Unity opposition | First reading, Third reading | 2 | no record |
| Michal Miriam Woldiger | Religious Zionism coalition | First reading | 1 | no record |
| Ram Ben Barak | Yesh Atid opposition | First reading | 1 | no record |
| Merav Ben Ari | Yesh Atid opposition | First reading | 1 | no record |
| Gilad Kariv | Labor opposition | First reading | 1 | no record |
| Evgeny Sova | Yisrael Beytenu opposition | First reading | 1 | no record |
| Sharon Nir | Yisrael Beytenu opposition | First reading | 1 | no record |
| Vladimir Beliak | Yesh Atid opposition | First reading | 1 | no record |
| Idan Roll | Yesh Atid opposition | First reading | 1 | no record |
| Yoav Segalovitz | Yesh Atid opposition | First reading | 1 | no record |
| Michal Shir Segman | Yesh Atid opposition | First reading | 1 | no record |
| Iman Khatib Yassin | Ra'am opposition | First reading | 1 | no record |
| Yorai Lahav Hertzanu | Yesh Atid opposition | First reading | 1 | no record |
| Mickey Levy | Yesh Atid opposition | First reading | 1 | no record |
| Orna Barbivay | Yesh Atid opposition | First reading | 1 | no record |
| Simon Davidson | Yesh Atid opposition | First reading | 1 | no record |
| Moshe Turpaz | Yesh Atid opposition | First reading | 1 | no record |
| Chili Tropper | National Unity opposition | First reading | 1 | no record |
| Naor Shiri | Yesh Atid opposition | First reading | 1 | no record |
| Sharren Miriam Haskel | National Unity opposition | First reading | 1 | no record |
| Matan Kahana | National Unity opposition | First reading | 1 | no record |
| Gideon Sa'ar | National Unity opposition | First reading | 1 | no record |
| Naama Lazimi | Labor opposition | First reading | 1 | no record |
| Yifat Shasha Biton | National Unity opposition | First reading | 1 | no record |
An automatic summary of the plenum transcripts: the debate on the bill at every reading it was voted on. Arguments are given as the speakers made them; this is not an assessment. The list of speakers comes from the transcript, without a model. Transcripts of the sittings: 1, 2 · write to the author
Reservations to the second reading
25 reservations were filed: proposed changes to the text the committee brought to the second and third reading.
The reservations sought to amend Section 141 of the Income Tax Ordinance regarding the duty to report wage agreements, to expand reporting obligations and the use of information transmitted to the Tax Authority regarding money changers, and to condition or extend the tax exemption set out in Section 1 of the bill.
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Hebrew original
ההסתייגויות ביקשו לתקן את סעיף 141 לפקודת מס הכנסה בנוגע לחובת הדיווח על הסכמי שכר, להרחיב את חובות הדיווח והשימוש במידע הנמסר לרשות המסים בנושא חלפני כספים, ולהתנות או להאריך את הפטור ממס הקבוע בסעיף 1 להצעת החוק.
By faction
- National Unity opposition · 16 reservations · 12 members
- Labor opposition · 7 reservations · 4 members
- Yesh Atid opposition · 2 reservations · 24 members
A joint reservation counts for every faction whose members filed it.
Who proposed what
- קבוצת המחנה הממלכתי · 16The National Camp group proposed adding to the marginal note and the content of the section details regarding the transfer of information to the Tax Authority, enforcement against money laundering, transaction monitoring, and privacy protection, and also proposed alternative wordings to amend the marginal note concerning the reporting obligation of currency exchangers.Sections: לסעיף 1
- קבוצת העבודה · 7The working group proposed adding, before the section, amendments to Section 141 of the Income Tax Ordinance regarding the duty to report wage agreements, reporting deadlines, the manner of providing details, and the identity of the parties obligated to report.Sections: לפני סעיף 1
- קבוצת יש עתיד · 2The Yesh Atid group proposed conditioning the cancellation of the tax exemption on a High Court of Justice ruling regarding infringement of the Basic Law: Freedom of Occupation, and also extending the exemption period from three to four years.Sections: לסעיף 1Yair Lapid, Orna Barbivay, Meir Cohen, Karine Elharrar, Meirav Cohen, Elazar Stern, Mickey Levy, Merav Ben Ari, Ram Ben Barak, Yoav Segalovitz, Boaz Toporovsky, Michal Shir Segman, Idan Roll, Yorai Lahav Hertzanu, Vladimir Beliak, Ron Katz, Matti Sarfatti Harcavi, Tatiana Mazarsky, Yasmin Fridman, Debbie Biton, Moshe Turpaz, Simon Davidson, Naor Shiri, Shelly Tal Meron
Asked to speak: Ayman Odeh (Hadash–Ta'al), Ahmad Tibi (Hadash–Ta'al), Aida Touma Sliman (Hadash–Ta'al), Ofer Cassif (Hadash–Ta'al), Youssef Atauna (Hadash–Ta'al), Avigdor Liberman (Yisrael Beytenu), Oded Forer (Yisrael Beytenu), Evgeny Sova (Yisrael Beytenu), Sharon Nir (Yisrael Beytenu), Yulia Malinovsky (Yisrael Beytenu), Hamad Amar (Yisrael Beytenu)
Proposers and reservation numbers are extracted automatically from the committee version, and the count is checked against the numbers printed in it. The descriptions are an automatic summary. Committee version for the second and third reading (PDF) · write to the author
Reservations, sections and other votes (1)
In order. Votes on reservations and individual sections are shown separately from the vote on the bill as a whole.
- 8 February 2023 · Second reading · סעיפים 2-1הצעת חוק לתיקון פקודת מס הכנסה (מס' 263), התשפ"ג-2023Bill to Amend the Income Tax Ordinance (No. 263), 2023auto22 for · 1 againstVote on sections of the bill