- Israel’s new regulations, which take effect on August 1, would further restrict the payment of sizable sums in cash and bank checks.
- The primary issue, according to a lawyer representing clients in an appeal against the law that was initially filed in 2018, is that it is ineffective.
The Fallen Lower Limit
On Monday, Israel’s new legislation that tightens limitations on transfers made in big amounts of cash will go into effect. The objective is to strengthen the battle against organised crime, money laundering, and tax evasion, according to the nation’s tax administration. Critics scoff at the law’s prospects of success. Israel’s new regulations, which take effect on August 1, would further restrict the payment of sizable sums in cash and bank checks. In an effort to halt illegal activities including the laundering of illicit cash and tax evasion, tax officials reportedly want to further restrict the quantity of currency in circulation in the country.
The new rule lowers the previous limit of 11,000 shekels ($3,200) to 6,000 shekels ($1,700), mandating that firms use non-cash methods for any transactions beyond that threshold. For non-registered business owners, the maximum cash sum is 15,000 shekels, or around $4,400. According to Tamar Bracha, who is in charge of carrying out the regulations on behalf of the Israel Tax Authority, the primary goal of the law is to decrease the usage of cash.
Any exceptions?
The primary issue, according to a lawyer representing clients in an appeal against the law that was initially filed in 2018, is that it is ineffective. According to various sources, the quantity of money has actually risen since the law’s inception. A controversial exception for NGOs working in ultra-Orthodox areas and Palestinians from the West Bank has also been raised. Deals involving substantial sums of cash will be permitted in certain circumstances, providing the tax administration is fully informed. This, in Goldman’s opinion, is unjust to the rest of society.
Source: https://www.thecoinrepublic.com/2022/08/01/you-cant-do-low-amount-cash-deals-in-israel/