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Income Tax

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Income tax is one of the most feared institutions in the country.

In a country in which the national sport seems to be trying to get away with laws\, everybody looks for ways in which they can avoid their legal responsibility to pay taxes.

As a result, Israelis have raised the concept of working called "black" to new heights and those who are able to get away with taxes by legal means or otherwise or by working black are revered. Granted this increases the tax on the rest of us who pay what we should, but that does not seem to be the main issue. It is more important to know that you got away with paying your fair share of the tax. Some people have raised the ability to avoid tax to a fine art. They go into the Income Tax office demonstrating a great deal of bravado and they argue with the authorities, sometimes even yelling at them.

Apparently, this works and they proudly walk out and tell all of their friends how much they were able to avoid paying using this method and others.

Perhaps some of the blame can be placed on the Income Tax authorities themselves. The tax rate is so high and it grows the more that you earn, that many people feel that it is not worth working and giving half of the income to the government.

A second job is usually frowned upon since the tax authorities demands a teum mas - a joint employment tax reconciliation - which often leaaves them with only a minimal amount in their pockets.

Others choose to hire somebody, a tax consultant, to represent them in the Income Tax office. Sometimes this works; in other cases they may have to come in themselves but it does limit the number of times that they have to approach the authorities.

Granted, in other countries people are called down for a tax audit and sometimes they use methods to avoid paying tax, in other case taxes. In other cases they do have to pay. However, it is rare that this situation or skill is raised to the level of an art as it is in Israel.

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Keywords: Institutions, Law, Taxation
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