Natural Resources Taxation Law approved: "wealth fund" will accumulate billion shekels in 2022

The Natural Resources Taxation Law passed on Wednesday evening by a majority of 9 MKs against 0 opponents and entered the law book of the State of Israel after long months of discussions and delays. In this way, the "wealth fund", to which taxes from gas profits are directed, will probably accumulate more than a billion shekels in 2022, and the money will be able to be used for public use.
Thanks to the amendment to the law, levies over $ 200 million, the payment of which has been delayed for a long time due to disputes with the tax authority, will soon be paid for the benefit of all Israeli citizens. The fund currently has about NIS 600 million. When it reaches probably one billion shekels in the next year, the fund will be officially launched.
The amendment to the law streamlines the levy collection procedure and solves the problem of the positive incentive created for companies to obtain and appeal the amount of the assessment, thus postponing the date of transfer of payment for years. Prior to the amendment, the corporations could appeal to the court over the amount of the levy they were required to pay in the assessment in the order, and as long as no judgment was rendered, they were not required to pay the disputed levy. The amended rule stipulated that the disputed amount is not paid, thus allowing companies to drag out the payments that come to the state for years and created a negative incentive to pay taxes to the state treasury. The amendment works on a simple principle - first you pay 75% of the additional levy in dispute and then you argue.
Another significant amendment that enters the law is the imposition of a fine on a deficit. When a company submits a tax report with an underestimation of the annual payment it must pay, the tax authority will be authorized to collect 15% of the gap between the company's underestimation and the tax authority's assessment. This year.
The many appeals from the big natural resource companies have delayed the entry of levy money that would have been said to be received for over-taxing profits, and the public has been hurt. The amendment to the law passed today will return the money due to the public from Israel's natural resources, and it is estimated that it will contribute in the coming years to a payment of over $ 200 million to the state, which is delayed due to disputes between corporations and the tax authority.
The chairman of the finance committee, MK Alex Kushnir, said this evening: “The practice of withdrawing the date of payment of the tax by the gas, oil and natural resources companies has ended. Even if there is a dispute over the amount of tax, companies will be required to pay at least 75% of it immediately. So we released the cork and the money will start flowing to the wealth fund. I am proud to be a partner in such a big and significant move. "
The Minister of Finance, Avigdor Lieberman: "The law creates mechanisms for dealing with deficient tax reports of companies with the rights to exploit natural resources in Israel. "Their reports to the tax authority will be important tools for deterrence and will help streamline the collection of the levy."
The Minister of Innovation, Science and Technology, Orit Farkash HaCohen: "This is a day that should not be underestimated for Israeli citizens. It is time to ensure that the funds of the wealth fund that we deserve, the public, will indeed be transferred to the wealth fund. "