Negative incentive: Levying high tax on fuel.

Positive Incentive:

Tax benefits for investments in areas of national priority.

Tax benefits for employers / workers in priority jobs / sectors.

Tax benefits for employers / workers in areas of national priority.

Examples for government incentives through taxationExamples for government incentives through taxation

Negative income tax grant A grant provided through the Tax Authority to employees or self employed

persons with low income level (increases the rate of participation in the labor market, focusing on families with children and adults over 55). Applying for a grant does not require payment and can be submitted at any post office.

Encouragement laws Tax benefits and grants provided by the government under the

encouragement laws (Capital Investment Encouragement Law, Industry Encouragement law (Taxes).Goal: To encourage economic initiative and capital investment from Israel and abroad, develop industrial production capabilities, improve export and the balance of payments and spread population throughout the country.

Protecting local production - through customs and import surcharges.

Considerations: Economic, social, security related and demographic.for example, preserving a certain level of agriculture.

Important: It is necessary to ensure that the protection is proportionate and balances local production with competition from overseas export.

Examples for government incentives through taxationExamples for government incentives through taxation

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1. The Tax Authority was established on September 2004 and includes three of the departments that operated separately in the past- The Department of Income Tax and Land

Taxation [including property tax]. The Department of Customs and VAT. EPS (Electronic Processing Services).

2. The Tax Authority has 5,300 employees (3,000 in Income Tax, 2,000 in Customs and VAT and 300 in EPS).

What is the Tax Authority What is the Tax Authority

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Units of the Tax Authority

Units of the Tax Authority

From the former Income Tax Department: 26 regional assessment offices 10 regional land taxation offices 4 regional investigation offices 3 regional execution proceedings

units 1 national serious crime unit

From the former Customs and VAT Department:

17 VAT stations 7 customs houses 4 investigation and intelligence

units 1 headquarters unit for the

prevention of drug smuggling and money laundering

9 international land border crossings and 8 internal crossings (demarcation line)

1 national unit for autonomy and fuel

3 overseas offices (Brussel, New York, Beijing)

The Vision of the Tax Authority The Vision of the Tax Authority

The Tax Authority shall act diligently to enforce the collection of taxes and

provide efficient, competent and fair service, while empowering human capital and promoting the duty and social value of paying true taxes.

The Tax Authority shall act diligently to enforce the collection of taxes and

provide efficient, competent and fair service, while empowering human capital and promoting the duty and social value of paying true taxes.

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Goals of the Organization

To establish an adequate tax policy to

allow collection of true taxes and

support economic activity.

To establish an adequate tax policy to

allow collection of true taxes and

support economic activity.

To promote a policy of growth and to

narrow gaps while dealing with the

economic situation.

To promote a policy of growth and to

narrow gaps while dealing with the

economic situation.

To implement policies effectively while

providing available and competent

service to tax payers, citizens and foreign investors on the one

hand, and establishing effective

methods of enforcement and deterrence on the

other.

To implement policies effectively while

providing available and competent

service to tax payers, citizens and foreign investors on the one

hand, and establishing effective

methods of enforcement and deterrence on the

other.

To improve the effectiveness of the work and to nurture

employees.

To improve the effectiveness of the work and to nurture

employees.

Types of Tax and Means of Levying Tax

Tax typesTax types

Means of levying taxes

Means of levying taxes

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6. Direct / Indirect Taxes

Example

The role of the teacherWhat are the characteristics of an indirect tax?

What are the characteristics of a direct tax?Which of the two is more fair in your opinion and why?

6. The Difference between a Relative Tax and a Progressive Tax

ExampleWhat is the difference between a relative tax

and a progressive tax in light of the 3 types of revenue?