Israel Tax Authority's Amnesty Program Yields Less Than Expected

Israel's Tax Authority "voluntary disclosure" program, designed to allow tax evaders to report undeclared income without facing criminal prosecution, has generated less revenue than anticipated. This marks the fourth time in 15 years the authority has run such a program, but this iteration saw fewer participants, likely due to increased anonymity restrictions mandated by the Ministry of Justice. For the first time, the program included undeclared cryptocurrency earnings, alongside rental income and foreign accounts.

The Tax Authority has stated there are no current plans to relaunch the program, meaning individuals caught evading taxes henceforth will face criminal charges. Official data released on Monday revealed 823 applications were submitted, declaring a total of approximately 1.89 billion shekels in hidden assets. Tax officials had previously expressed expectations of uncovering billions more in undeclared wealth.

The estimated principal tax amount from these applications stands at 152.6 million shekels. Notably, about half of all applications were filed in August 2026, the final month the program was active. The Tax Authority noted that some applications may cover multiple categories, leading to potential overlaps in the data breakdown by subject.

It is important to note that the reported asset and tax sums are based on the applicants' declarations and may not reflect the final amounts determined or collected after the review process. The program, approved by the Attorney General and launched in August 2025, allowed individuals who violated tax laws to voluntarily report undeclared income and assets, pay the full tax due, and receive immunity from criminal proceedings, provided they met specific conditions.

The initiative covered all tax domains, including income tax, VAT, customs, and property taxes. It concluded on August 31st, after a year-long window for citizens to self-report and pay taxes to avoid criminal prosecution before tax investigators discovered the evasion. Previous iterations of the program, run between 2011-2012, 2014-2016, and 2017-2019, resulted in approximately 9,000 cases and the collection of about 5 billion shekels in taxes.