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

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)
MemberFactionReadingsSpeechesIn the final vote
Ohad TalReligious Zionism coalitionThird reading1no record
Tatiana MazarskyYesh Atid oppositionThird reading1no record
Pnina TamenoNational Unity oppositionFirst reading, Third reading2no record
Alon SchusterNational Unity oppositionFirst reading, Third reading2no record
Zeev ElkinNational Unity oppositionFirst reading, Third reading2no record
Michal Miriam WoldigerReligious Zionism coalitionFirst reading1no record
Ram Ben BarakYesh Atid oppositionFirst reading1no record
Merav Ben AriYesh Atid oppositionFirst reading1no record
Gilad KarivLabor oppositionFirst reading1no record
Evgeny SovaYisrael Beytenu oppositionFirst reading1no record
Sharon NirYisrael Beytenu oppositionFirst reading1no record
Vladimir BeliakYesh Atid oppositionFirst reading1no record
Idan RollYesh Atid oppositionFirst reading1no record
Yoav SegalovitzYesh Atid oppositionFirst reading1no record
Michal Shir SegmanYesh Atid oppositionFirst reading1no record
Iman Khatib YassinRa'am oppositionFirst reading1no record
Yorai Lahav HertzanuYesh Atid oppositionFirst reading1no record
Mickey LevyYesh Atid oppositionFirst reading1no record
Orna BarbivayYesh Atid oppositionFirst reading1no record
Simon DavidsonYesh Atid oppositionFirst reading1no record
Moshe TurpazYesh Atid oppositionFirst reading1no record
Chili TropperNational Unity oppositionFirst reading1no record
Naor ShiriYesh Atid oppositionFirst reading1no record
Sharren Miriam HaskelNational Unity oppositionFirst reading1no record
Matan KahanaNational Unity oppositionFirst reading1no record
Gideon Sa'arNational Unity oppositionFirst reading1no record
Naama LazimiLabor oppositionFirst reading1no record
Yifat Shasha BitonNational Unity oppositionFirst reading1no 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

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.

Source: bill page in the Knesset legislation database ↗

Law to Amend the Income Tax Ordinance (No. 263), 2023 · How the Knesset Votes