An unpleasant figure was published yesterday by the State Comptroller, who determined that the Tax Authority owes citizens NIS 3.6 billion in over-collections and that the deficiencies that led to these unnecessary payments have not been corrected.
CPA Yaniv Angel, co-manager of the Israeli branch of the international consulting firm Auren, believes that "the main reason for this is that the tax authority does not act proactively to provide tax refunds to those entitled."
Angel notes that "by law they must return the funds, but there is a technological inability to obtain the information required to return the funds." As an example of the missing information Angel says: "Some people know they deserve a tax refund, but their bank account details are not updated with the tax authorities, and as long as there is no update of the funds the refund will not come. Like twenty years ago the tax authority sends a message, and if we changed our address or we did not pay attention to the mail, we will not receive it. They do not work by phone or e-mail. Sometimes the letters do not reach the right destination, but according to them they have done their duty."
Angel, on the other hand, notes that when a citizen owes taxes, the tax authority is not satisfied with a notice that did not reach its destination, but confiscates his bank account if he did not address the debt notice.... Read More: Arutz-7