Gornitzky & Co. represented nine leading Israeli soccer teams in their appeal to the Supreme Court of Justice in response to a judgment granted by the Tel Aviv District Court. The judgment, which was issued in favor of the Israel Tax Authority, obligates the teams to pay VAT on transfer fees paid when foreign soccer players are transferred from overseas teams.
The appeal was filed based on the claim that the transfer fees are not in exchange for an imported asset (the players), but rather as compensation to the foreign club for breach of a contract abroad, effectively releasing the player from his contract with the foreign club to enable him to sign a new contract with the Israeli team, as set forth in the FIFA rules.
Pinhas Rubin (Firm Chairman), Daniel Paserman (Partner, Head of Tax) and Yoad Cohavy are leading the representation.
