In a concise video, Adv. Doron Levy delves into Israel’s voluntary disclosure program, focusing on the role of cryptocurrency. He emphasizes that crypto’s independent ecosystem bypasses typical banking frameworks, which reduces reporting to the Israel Tax Authority (ITA). With crypto gaining value, the ITA is trying to close the gap in tax compliance within this area.
Levy points out that crypto operates outside conventional financial institutions, meaning that transactions and holdings often go unreported. This lack of transparency has made it challenging for tax authorities to monitor activity and collect taxes on crypto-related income. The ITA is now updating its voluntary disclosure framework to address this gap.