Israel Moves Towards Cashless Society

Article Source taxationinfonews.com

JERUSALEM – Reducing the use of cash for everyday transactions will directly help Israel to fight tax evasion, and to eliminate money laundering.

On September 17th the Cabinet of Israel launched a new committee charged with the task of finding new means and measures of encouraging taxpayers to use of electronic payment methods instead of cash, as, it is believed, that the shift will help reduce the occurrence of tax evasion and unreported incomes.

Explaining the benefit of a “cashless” society, the appointed head of the committee Harel Locker said that a significant number of everyday transactions currently remain unreported and untaxed, however, expanding the uptake of electronic payment methods will increase tax authorities’ abilities to investigate tax evasion and to uncover activity on the underground economy.

The committee will initially look into the feasibility of introducing “fee-less electronic charge cards” to be used for everyday purchases and transactions, to be provided freely to anyone who currently receives welfare or to anyone who does not have a bank account.

Research will also be conducted into methods to restrict the use of checks, and to limit high-value cash transactions, while establishing new protocols for the sharing of information between the Tax Authority and the Authority for the Prohibition of Money Laundering.

The committee is scheduled to issue its first report to the prime Minister within 90 days.