working men

Our firm has a large tax department which can assist you in achieving your goals and in contending with the challenges you face. The staff of the department has a broad variety of areas of expertise that target defined communities and can assist you in moving forward on a variety of issues.

Trust taxation

Taxation and reporting with regard to trusts is relevant primarily for parties who serve as trustees and not just for grantors and beneficiaries.

Our firm has the expertise that you, the trustee, need – handling, consulting and examination of tax liabilities.

Background

Since January 1, 2006, the Income Tax Ordinance has added a dedicated chapter that deals with taxation of trusts. The chapter regulates the tax liabilities and reporting requirements in Israel during all of the live stages of the trusts and defines four types of trusts:

  • An Israeli-resident trust
  • A foreign-resident grantor trust
  • A foreign-resident beneficiary trust
  • A last will and testament trust

* In defining the type of trust, there is no significance to the location in which the trust is registered.

Proposed services

The correct categorization of a trusts has a decisive impact on reporting requirement and tax liabilities. This issue is one of the most complex issues in the area of taxation and, therefore, the accountant must have in-depth knowledge of the issue of trusts. He must handle these issues expertly, utilizing advance planning and providing close support throughout the life of the trust. Fahn Kanne – Grant Thornton Israel’s tax department has extensive experience in preparing annual reports for trustees and in providing consulting services to clients, part of who are trust beneficiaries and part of who are grantors.

The tax department offers a package of services for efficient and professional reporting to the tax authorities:

  • Preparation of annual statements to trustees
  • During the course of the year – filing of notifications, declarations and reports in connection with activities carried out in trust, assets held and revenues generated.
  • Participation in deliberations
  • Consulting and accompaniment in dealings with the tax authorities.
יגאל רופא
Partner, Head of tax department
Yigal Rofhe