Important Court Decision on the Taxation of Trusts in Israel
In July 2019 the District Court in Tel Aviv handed down a decision rejecting the Israel Tax Authority’s position on the conveyance of Israeli real estate properties to a trust. The decision contradicts the long-held position of the ITA which has treated the transfer of Israeli real estate into a trust as a taxable event. The recent decision – if upheld by the Supreme Court – will dramatically change the taxation of trusts in Israel.
