Our firm represented three of the founders of an Israeli fintech giant that is traded abroad, against tax assessments in which it was claimed that the founders had acted as a single cluster, and that they should be taxed as a “substantial shareholder.”
Following the increase in the tax rate, the Tax Assessor sought to levy a tax supplement in the amount of millions of shekels on each one of the taxpayers.
As a consequence of the objection that was filed through our firm, coupled with several discussions, the Israel Tax Authority accepted all of our arguments and it was satisfied that the relationship between the founders does not meet all of the cumulative conditions that are required in order for them to be taxed at the higher rate.
