Negative incentive: Levying high tax on fuel.
Positive Incentive:
Tax benefits for investments in areas of national priority.
Tax benefits for employers / workers in priority jobs / sectors.
Tax benefits for employers / workers in areas of national priority.
Examples for government incentives through taxationExamples for government incentives through taxation
Negative income tax grant A grant provided through the Tax Authority to employees or self employed
persons with low income level (increases the rate of participation in the labor market, focusing on families with children and adults over 55). Applying for a grant does not require payment and can be submitted at any post office.
Encouragement laws Tax benefits and grants provided by the government under the
encouragement laws (Capital Investment Encouragement Law, Industry Encouragement law (Taxes).Goal: To encourage economic initiative and capital investment from Israel and abroad, develop industrial production capabilities, improve export and the balance of payments and spread population throughout the country.
Protecting local production - through customs and import surcharges.
Considerations: Economic, social, security related and demographic.for example, preserving a certain level of agriculture.
Important: It is necessary to ensure that the protection is proportionate and balances local production with competition from overseas export.
Examples for government incentives through taxationExamples for government incentives through taxation
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1. The Tax Authority was established on September 2004 and includes three of the departments that operated separately in the past- The Department of Income Tax and Land
Taxation [including property tax]. The Department of Customs and VAT. EPS (Electronic Processing Services).
2. The Tax Authority has 5,300 employees (3,000 in Income Tax, 2,000 in Customs and VAT and 300 in EPS).
What is the Tax Authority What is the Tax Authority
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Units of the Tax Authority
Units of the Tax Authority
From the former Income Tax Department: 26 regional assessment offices 10 regional land taxation offices 4 regional investigation offices 3 regional execution proceedings
units 1 national serious crime unit
From the former Customs and VAT Department:
17 VAT stations 7 customs houses 4 investigation and intelligence
units 1 headquarters unit for the
prevention of drug smuggling and money laundering
9 international land border crossings and 8 internal crossings (demarcation line)
1 national unit for autonomy and fuel
3 overseas offices (Brussel, New York, Beijing)
The Vision of the Tax Authority The Vision of the Tax Authority
The Tax Authority shall act diligently to enforce the collection of taxes and
provide efficient, competent and fair service, while empowering human capital and promoting the duty and social value of paying true taxes.
The Tax Authority shall act diligently to enforce the collection of taxes and
provide efficient, competent and fair service, while empowering human capital and promoting the duty and social value of paying true taxes.
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Goals of the Organization
To establish an adequate tax policy to
allow collection of true taxes and
support economic activity.
To establish an adequate tax policy to
allow collection of true taxes and
support economic activity.
To promote a policy of growth and to
narrow gaps while dealing with the
economic situation.
To promote a policy of growth and to
narrow gaps while dealing with the
economic situation.
To implement policies effectively while
providing available and competent
service to tax payers, citizens and foreign investors on the one
hand, and establishing effective
methods of enforcement and deterrence on the
other.
To implement policies effectively while
providing available and competent
service to tax payers, citizens and foreign investors on the one
hand, and establishing effective
methods of enforcement and deterrence on the
other.
To improve the effectiveness of the work and to nurture
employees.
To improve the effectiveness of the work and to nurture
employees.
Types of Tax and Means of Levying Tax
Tax typesTax types
Means of levying taxes
Means of levying taxes
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6. Direct / Indirect Taxes
Example
The role of the teacherWhat are the characteristics of an indirect tax?
What are the characteristics of a direct tax?Which of the two is more fair in your opinion and why?
6. The Difference between a Relative Tax and a Progressive Tax
ExampleWhat is the difference between a relative tax
and a progressive tax in light of the 3 types of revenue?