Tax Authority Appoints Architect of 'Trapped Profits' Reform as Chief Professional Officer
Translated & summarized from Globes by baba
Karim Kanaan, the architect of Israel's "trapped profits" tax reform, has been appointed Chief Professional Officer at the Israel Tax Authority. The reform, enacted in January 2025, generated billions for the state and faced significant opposition. Kanaan, previously chief of staff, will now lead tax policy and enforcement, overseeing legislation and complex cases. He began his career at the authority 13 years ago.
The story in 5 lines · by baba
- Karim Kanaan appointed Chief Professional Officer at Israel Tax Authority.
- Kanaan spearheaded the "trapped profits" tax reform enacted in January 2025.
- The reform generated approximately NIS 20 billion in its first year.
- Kanaan previously served as chief of staff to the Tax Authority Director.
- The new role involves shaping tax policy and enforcement in Israel.
Karim Kanaan, a certified public accountant and the former chief of staff for the Israel Tax Authority, has been appointed as the new head of the authority's Professional Division. Kanaan, 36, was the driving force behind the "trapped profits" reform, a law that imposed a new tax on companies holding large amounts of cash without distributing them as dividends. The reform, which took effect in January 2025, generated significant controversy and faced legal challenges from numerous companies, all of which were unsuccessful.
Kanaan was instrumental in the reform's passage, initiating, drafting, and advocating for it before the Knesset's Finance Committee. The legislation is credited with bringing approximately NIS 20 billion into state coffers within its first year, double the initial projections. This appointment places Kanaan in one of the most influential positions shaping tax policy and enforcement in Israel.
In his new role, Kanaan will oversee the Tax Authority's professional approach, lead legislative processes, interpret tax laws including income tax, real estate taxation, and VAT, and issue professional directives. He will also manage complex cases involving major taxpayers and their representatives, guide tax officials and regional offices, and play a key role in formulating the authority's positions in legal proceedings and in its interactions with government bodies and the Ministry of Finance.
Kanaan began his career at the Tax Authority 13 years ago as a junior accounting intern and supervisor. He progressed through various roles before being appointed chief of staff in 2023 by the then-Director of the Tax Authority, Shei Aronovich. Kanaan was previously recognized as part of Globes' "40 Under 40" list.