Categories
Economic Tips Israeli Economy

The methods how the Israelis are hiding taxes

We are bound by a tax that is one of the highest in the world, so that former Minister of Finance Adon Hirshinzon can eat his lunch for 5000 NIS and wear shoes for 7000 NIS, and many more are better than him, such as the honest mayors who, in general, are fooling the citizens. With the methods of Kishu no criminal organization, it is Madaniy that has turned the citizen into its main source of income.
Why do the people actually raise taxes...
Why did we start with the combines...?
Because the state does not provide what needs to be provided and the money disappears somewhere...
And the citizen does not receive what he considers normal (you took from me and from him and also from them taxes……).
With no conditions that the state is supposed to give, each person does the maximum for himself to have at least. And this is the result.

Israelis evade taxes

"Locked-in profits" of tycoons
When an ordinary citizen did not print a transaction for NIS 50, they call it tax evasion, when a tycoon refuses to pay tax on 50 million dollars, they call it trapped profits.

Dancers undercover weddings
The owner of the company brings some students to eat and dance, they are happy that they came to enjoy and eat in a good place. He pays them minimum wage. Receives thousands of shekels. Because the people are idiots and they have money, if you spend 15 thousand shekels on a dress and 1 thousand shekels on make-up for the mother of the groom or the bride, then what is the point of spending 5000 shekels on dancers. Half of the amount disappears.
If you give the owner of the company a check, it's an open check and he gives it to his mother, father, brother, sister to deposit in their account, then they withdraw the money and give it to the cashier who opens a safe and hides cash. They also buy property and register it in the name of the father, grandfather, etc. and then say that the grandfather, father, gave a gift. That simple and the income tax has been doing nothing for them for years. This is from getting to know the owner of such a company. They just buy and party all the time from the black money. Soon the whole family is going abroad for a month.

50% tax on a second job and the people will cheat less
The state lets people work and rip their ass, and the worker is forced to pay thousands of shekels in tax. That's why people prefer to pay black and avoid tax.
Individual business owner and independent taxi driver knows well that it is not this simple survival theft
Does it make sense to you that a taxi driver would sit at the wheel day and night and in the end be left with 5000 NIS and what would his children eat invoices?
In conclusion, if we change the taxation system to low taxation, then all service providers of all kinds and all business owners, etc. will report true reports and thus there will be full, full, full of tax revenue, because even so, no one has any idea how much black is rolling in here, they are just guessing.

The black economy plagues the country.
If the tax rate was relatively low, and severe punishment (according to Hillary Clinton) it would not be worthwhile to evade taxes.
Since the taxation is very high, and let's say you get caught (if at all) what will you get? Service work for a year?
It is very profitable to avoid taxes.
Another problem, as stated in the article, the fact that you received an invoice, does not mean that the person who gave it to you will indeed pay tax on it.
Another problem is the squared taxation. Since you pay tax twice on everything, and if you buy services then you also pay tax on the service, it pays to buy services in cash, and save the additional taxation.
So what is the solution: draconian punishment. We will start with a renovation contractor who will be caught, we will continue with a store owner who will be caught, and a teacher who gives private lessons.
Prohibit by law sales to countries that are tax havens. It is true that it is difficult to enforce it.
And finally cut taxes in half. Or leave VAT and lower the taxes to a third plus VAT.