Tax Advisors President Calls for Shin Bet Involvement in Fighting Black Market

Yaron Gindi, president of the Association of Tax Consultants, has called for the Shin Bet security agency to be enlisted in the fight against the "black market" and illicit capital in Israel. Speaking to Walla News, Gindi argued that while the Tax Authority has intensified its efforts, criminal organizations have become more sophisticated, making it a perpetual battle. He stressed the need to equip the Tax Authority with all necessary tools, including access to government databases and increased personnel, and to allow collaboration with the police and Shin Bet.

Gindi also addressed the issue of cryptocurrency, noting that it presents loopholes for the black market. He expressed regret that the Ministry of Justice did not permit anonymous voluntary disclosure for crypto investors, adding that banks are still hesitant to accept crypto funds even after taxes have been paid and declared. He also criticized the public sector's structure, stating that it hinders economic development and public service, preventing the rewarding of good employees and the dismissal of poor performers.

Regarding the housing market, Gindi predicted continued price increases due to fundamental demand but urged drastic measures and the appointment of a dedicated leader to manage the sector. He warned of a potential "crazy price increase" in the coming years if action is not taken, advocating for a revolution in planning and construction institutions to shorten the lengthy building completion times, which can take up to 14 years after approval. He called for a state inquiry into the "negligent activity and bureaucracy" within these institutions.

Furthermore, Gindi urged the incoming government to abolish the "locked profits" law, which mandates companies to distribute dividends, arguing it stifles economic growth. He also highlighted the future of the high-tech industry, emphasizing the need for professional training for the younger generation to adapt to the AI economy, predicting that AI users will replace those who do not adopt the technology. He also warned against renewing a high purchase tax on real estate, stating it freezes the market and will lead to sharper price increases in the future, while encouraging investors to buy abroad and driving up rental prices in Israel.

Finally, Gindi commented on the Tax Authority's move towards fully digital capital declarations, welcoming the digitization but cautioning that it may increase processing times and bureaucratic burdens, ultimately raising living costs for businesses, contrary to the expected benefits of digitalization.