Tax Authority Ends Voluntary Disclosure Program, Uncovers Nearly $500 Million

Israel's Tax Authority announced the conclusion of its voluntary disclosure program, a measure that allowed individuals to report undeclared income and assets and avoid criminal prosecution. The program, which ended on August 31, 2026, saw 823 applications submitted, revealing a total of 1.89 billion shekels (approximately $497 million) in previously undisclosed assets.

The estimated tax revenue from these disclosures amounts to 152.6 million shekels (approximately $40 million). According to the Tax Authority, the primary areas reported by applicants included rental income, profits from digital assets like cryptocurrency, and foreign bank accounts.

Specifically, 324 applications related to rental income reported 358.2 million shekels in assets, with an estimated tax of 32.3 million shekels. Digital assets accounted for 203 applications, reporting approximately 482.5 million shekels in assets and an estimated tax of 51 million shekels. Foreign bank accounts were the subject of 197 applications, revealing 623.1 million shekels in assets and an estimated tax of 41.9 million shekels.

Despite a request from the Tax Authority's director, the program, launched in August 2025, did not permit anonymous reporting due to opposition from the Attorney General. This restriction is believed to have significantly limited the potential tax revenue from cryptocurrency disclosures.