Fun

Israel Prohibits Cash Deals for Amounts Starting as Low as $1,700

News Feed - 2022-07-31 05:07:35

Israel Prohibits Cash Deals for Amounts Starting as Low as $1,700


New legislation introducing tighter restrictions on payments with large sums of cash will enter into force in Israel on Monday. The goal, as stated by the country’s tax authority, is to improve the fight against organized crime, money laundering, and tax evasion. Critics doubt the law will achieve that. Authorities in Israel Go After Cash Purchases, Introduce Lower Limits


Payments of large sums of money in cash and bank checks will be further restricted in Israel by amendments set to take effect on Aug. 1. Tax officials want to further reduce the circulation of cash in the country, thus hoping to curb illegal activities such as the laundering of illicit funds and tax non-compliance, the Jerusalem Post reported.


Under the new legislation, companies will be required to use non-cash methods for any transaction exceeding 6,000 shekels ($1,700), a notable decrease from the previous ceiling of 11,000 shekels ($3,200). The cash limit for private individuals who are not registered as business owners will be 15,000 shekels (close to $4,400).


Reducing the use of cash is the main purpose of the law, according to Tamar Bracha, tasked with executing the rules on behalf of the Israel Tax Authority. Quoted by the Media Line news outlet, the official elaborated: The goal is to reduce cash fluidity in the market, mainly because crime organizations tend to rely on cash. By limiting the use of it, criminal activity is much harder to carry out.


However, an attorney representing clients in an appeal against the law filed in 2018, when it was first adopted, insists that the main problem is that the legislation is not efficient. Uri Goldman referred to data showing that since the law’s initial introduction, the amount of cash has actually increased. Pointing to another of its downsides, the legal expert further explained: When the bill passed there were over a million citizens without bank accounts in Israel. The law would prevent them from conducting any business and would, practically, turn 10% of the population into criminals.


An exemption for trading with Palestinians from the West Bank and charities active in the ultra-Orthodox communities has also sparked controversy. Deals with large amounts of cash will be allowed in these cases, provided they are thoroughly reported to the tax administration. Goldman thinks this is unfair to the rest of the society. Finance Ministry Also Wants to Limit Private Cash Holdings


In its original draft, first proposed in 2015, the law also featured a provision limiting the private holding of large sums of cash to 50,000 shekels ($14,500). Although it was dropped at the time, Israel’s Ministry of Finance now plans to reintroduce it and let the parliament decide whether to adopt it after the upcoming elections.


Uri Goldman also believes that the authorities should at least allow people to declare their cash and deposit it to a bank account. That idea was suggested during preliminary discussions on the legislation as well, but never approved. Otherwise, cash will remain in circulation even if not used like before, he noted.


Meanwhile, the Bank of Israel has been exploring the option to issue a digital shekel, another form of the national fiat which is supposed to have cash-like features. The majority of the respondents in public consultations carried out by the monetary authority have been supportive of the plan, the results published in May revealed. Tags in this story ban, Cash, israel, Israeli, Law, Legislation, limits, money, Money Laundering, Payments, restrictions, shekel, Tax, tax authority, tax evasion, Taxation, Taxes, transactions


Do you think the new law will limit the use of cash in Israel? Share your expectations in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. ECB Economists Suggest Limiting Access to Digital Euro to Protect Banks FINANCE | 1 day ago Bank Indonesia Prepares to Issue Digital Rupiah as Legal Tender for Digital Payments FINANCE | Jul 23, 2022


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleApecoin DAO Approves Funding a Bored Ape-Centric News Publication Next articleFinder’s Experts: Majority See Dogecoin Losing All Value — ‘It’s Time to Get out of DOGE’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards


Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether

News Feed

Elon Musk Unfazed by Daimler's EV Push, but Should He Be?
Another super-heavyweight car manufacturer is entering the EV ring, as Daimler announces plans to focus on battery-powered engines rather than gasoline. Tesla CEO Elon Musk congratulated the company on their decision, de
DeFi hub Chainage seeks tokenholder approval for $13M capital raise
Zhiyuan Sun6 hours agoDeFi hub Chainage seeks tokenholder approval for $13M capital raise“Pending DAO approval, we will advance with the particulars of the investment and detail the precise arrangements and plans,” t
Ana Paula Pereira2 hours agoFederal Reserve of San Francisco hiring crypto architect for CBDC projectSan Francisco"s Federal Reserve Bank is seeking a crypto architect for a central bank digital currency (CBDC).890 Total
Luna Foundation Purchases 5,040 BTC, Terra Reserves Rise to 35,767 Bitcoin
Luna Foundation Purchases 5,040 BTC, Terra Reserves Rise to 35,767 Bitcoin On April 6, onchain data shows the Luna Foundation Guard’s (LFG) bitcoin wallet has added 5,040 bi
Chainlink Whales Waking Up – Data Shows Signs Of Accumulation
Este artículo también está disponible en español. Chainlink (LINK) has seen a whirlwind of price activity, surging 50% before experiencing a sharp 15% retracement within
Zhiyuan Sun6 hours agoSBF criminal trial moves to closing argumentsBankman-Fried pleaded not guilty to all seven counts of fraud charges related to the collapse of crypto exchange FTX.1463 Total views47 Total sharesListe
India hosts 8M gov’t docs across 5 blockchains
Arijit Sarkar11 hours agoIndia hosts 8M gov’t docs across 5 blockchainsIndia primarily makes use of three blockchain platforms for the development of the products — Hyperledger Fabric, Hyperledger Sawtooth and Ethere
Bitcoin Calm Won’t Last—This Week Holds Breakout Risk
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
NFT Fantasy Football Platform Sorare Raises $680 Million in Series B Led by Softbank
NFT Fantasy Football Platform Sorare Raises $680 Million in Series B Led by Softbank On September 21, the non-fungible token (NFT) fantasy football platform Sorare announced the co
William Suberg42 minutes agoBitcoin price briefly clears $31K as monthly, quarterly close nearsBitcoin tries to cement higher support as an important day for markets arrives.318 Total viewsListen to article 0:00Market Up
Amazon's Climate Change Plan Is Terrible News for Tesla
Seven months after electric truck start-up Rivian announced that it had raised $700 million in an investment round led by Amazon, the online retail giant has placed a massive order with the Michigan-based EV firm as part
The ‘Growth Collection’ — Ross Ulbricht to Auction Bitcoin-Backed NFTs on Satoshi’s Birthday
The "Growth Collection" — Ross Ulbricht to Auction Bitcoin-Backed NFTs on Satoshi"s Birthday Following Ross Ulbricht’s non-fungible token (NFT) sale that raised 1,446 ethe