Tax Dodge Crackdown Pledged in Israel as Newcomer Exemptions End

Israeli officials suspect that a law intended to lure former residents and immigrants has enabled tax evasion and are pledging to crack down on what may be tens of thousands of cases.

With a 10-year reporting exemption up this year, tax authorities are pledging to find people who don’t file returns and audit those they suspect of not disclosing taxable income including domestic wages and capital gains. The 2008 law exempted income from foreign sources or foreign-held assets.

Officials can’t be sure how much evasion there is since people didn’t have to file returns, but a random check in 2014 ...