Tax Consultants Chamber President Warns Over Crypto and Housing Crisis
Yaron Gindi, president of the Tax Consultants Chamber, warns that crypto regulations and housing bureaucracy threaten the economy, calling for urgent reforms.
Cryptocurrency investments and the shadow economy remain major challenges for financial regulation, according to Yaron Gindi, president of the Tax Consultants Chamber. In an interview, Gindi criticized the Ministry of Justice for failing to allow anonymous voluntary disclosure for crypto investors, while noting that banks still refuse to accept crypto funds even when taxes have been paid and capital is fully declared.
Combatting the Shadow Economy and Bureaucracy
"There will always be loopholes in the shadow economy, and crypto assets in Israel are one of them," Gindi stated. He emphasized that while the Tax Authority has intensified its efforts against illicit capital, criminal organizations continue to evolve. To tackle this, Gindi advocates for granting the Tax Authority access to government databases, expanding its workforce, and integrating the police and the Shin Bet into financial enforcement.
Gindi also levied sharp criticism against the public sector, arguing that structural reforms are urgently needed. "The main obstacle holding back our economy is the structure of the public sector," he said, pointing out the inability to properly reward high-performing employees or dismiss underperforming ones.
Housing Market Risks and Tax Reform
Addressing the real estate sector, Gindi warned that home prices will inevitably rise over the long term due to persistent demand. He called for drastic measures, including the appointment of a dedicated housing czar and a state commission of inquiry into planning bureaucracy. According to Gindi, it currently takes up to 14 years from initial approval to complete a building.
"As long as the freeze in the real estate market continues, prices will jump even sharper in the future. High purchase taxes force investors to buy properties abroad, driving up rental prices in Israel as investors abandon the local market."
Among the top priorities for the incoming government, Gindi stressed the abolition of the law restricting corporate retained earnings, which he claims stunts long-term economic growth. Furthermore, he noted that the high-tech sector must prepare for the artificial intelligence revolution, warning that professionals who fail to adapt to AI tools risk being left behind.
