Will integrating an American law as part of Israel’s tax code violate both fundamental principles of privacy as well as the US Constitution?
Moshe Gafni sticks up for US taxpayers in Israel.
Members of the Knesset Finance Committee blasted a proposal to adopt an American law as part of Israel’ s tax code and Israeli-American lawyers said the proposal violates both fundamental principles of privacy as well as the US Constitution.
The proposal known as the Foreign Account Tax Compliance Act (FATCA) was passed by Congress in 2011 and requires Israeli banks investment houses and insurers to share financial information with the Internal Revenue Service about account holders who may be US citizens. In 2014 representatives of Israel’s Ministry of Finance signed the agreement expecting easy approval from the Knesset but thousands of Israelis have contacted Knesset members to object to the proposal.
Finance Committee Chairman Moshe Gafni (UTJ) called the bill a “bad law” warning it would violate wholesale the privacy of thousands of Israeli citizens and expose them to IRS jurisdiction whether or not they have any real ties to the United States.
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