Last week the Supreme Court’s ruling in the Galis Case was published. The court handed down a decision regarding one of the most significant open questions with respect the taxation of trusts.
Under the court’s ruling, the contribution of Israeli real estate to a trust will only be subject to the provisions of the Real Estate Taxation Law – i.e. betterment tax for the settlor and purchase tax for the trustee – and not taxed under the Israeli Income Tax Ordinance.
Partners Daniel Paserman (CPA) TEP, Head of Tax, Inbar Barak-Bilu (CPA) TEP and Yoad Cohavy, in a client update review the Galis Case.
