Tax Authority Disappointed: Low Response to Voluntary Disclosure Procedure

The Israel Tax Authority's voluntary disclosure procedure is set to expire at the end of August after a one-year run. What does the procedure entail, who should utilize it, and what are the current figures? Globes puts things in order.

Who is the procedure for?

The procedure is designed for those seeking to regularize their tax status and obtain criminal immunity. It allows citizens to disclose previously unreported funds and assets, pay the required taxes, and secure immunity from prosecution. This applies to both business owners and individuals who have committed tax offenses.

The current track, specifically tailored for crypto-asset holders, does not offer an anonymous disclosure option as in the past. Instead, it provides a fast-track "green" route for reporting smaller amounts, including crypto profits, without the need for lengthy discussions with an assessing officer.

Application Statistics

Since the procedure's launch in August 2025, the Israel Tax Authority has received 383 applications totaling approximately 877 million shekels in capital, yielding about 57 million shekels in tax revenue. Of these, 84 applications involved digital assets worth roughly 210 million shekels, generating 18 million shekels in tax. Notably, Globes reported two months ago that the state had anticipated collections between 2 and 3 billion shekels.

For comparison, the 2018 disclosure program revealed "black capital" totaling 3 billion shekels, resulting in 40 million shekels in tax revenue. While previous programs focused heavily on foreign bank accounts, such reports are now rare due to the global implementation of automatic financial information exchange.

Who should utilize the procedure?

Anyone with unreported income, including digital assets, should consider it. Holding digital assets does not require reporting until they are converted to shekels, swapped for other assets, or used for purchases, at which point a tax liability arises.

Adv. (CPA) Racheli Goz-Lavi, managing partner and head of the tax department at Amit, Pollak, Matalon, states:

"The voluntary disclosure procedure is almost the last opportunity for those holding unreported capital or assets to regularize their situation on their own initiative, before the information reaches the Israel Tax Authority from another source."

Goz-Lavi adds: "In an era of automatic information exchange and deepening enforcement, the ability to remain 'under the radar' is shrinking. For those with reporting failures, this is a strategic decision to reduce criminal exposure. Those who sit on the fence may find the window of opportunity closing just as the risk begins to materialize."

What happens after the procedure ends?

The current procedure was published despite opposition from the Ministry of Justice. While no additional voluntary disclosure program is currently on the agenda, it is widely expected that another procedure will be introduced in the future.