Israel Tax Authority thwarts tax rebate companies

Published date23 March 2023
In December the Tax Authority, headed by Eran Yaacov, published a form that salaried employees must fill in when giving power of attorney to these companies. Then, according to these companies, the Tax Authority began blocking access of accountants and tax advisors working with these companies, without any prior notice

In addition, representatives of these companies were summoned to a hearing in the Tax Authority offices. During the hearings, charges were made against them for breaching the contract for the use of the computer system and prohibited use of bots. Accountants and tax advisors who have undergone this "intimidating" experience have spoken to "Globes."

One of them is A, an accountant specializing in taxation and representing self-employed and salaried clients before the Tax Authority. "It was aggressive. I came to work and fed in my user details in order to begin working in the system and I discovered that I was blocked. I didn't know if it was a technical problem or the computer had been hacked."

SHAAM, the Tax Authority's automated computer processing service, told A, "We have blocked you. We will get back to you." After a short while A received an email that said, "We have disconnected your office due to suspicions of violating the terms of engagement." The letters to these representatives was signed by Niva Mashiach, head of SHAAM's customer service authority department.

After the warning letter came the "discussions" or "hearing" to which the representatives were summoned. A recounts, "I didn't bring a lawyer because I didn't think there was any need. When I arrived I found myself under attack. They told me that I was using bots and jeopardizing the system, and that I was helping the Iranians. It was really just like that."

A was being confronted by a panel of four to five representatives of the Tax Authority and SHAAM including Shlomo Ohayon, deputy director general customer services of the Tax Authority and Niva Mashiach.

At the end of the hearing, A asked to know what he could change so that he would again have to the Tax Authority computer system, and he pointed out that he would no longer use bots and no longer work with tax rebate companies. In response he was told that it wouldn't help and, "We will inform you if access will be opened for you."

A legal sources familiar with the issue explains that blocking access to the system ruins the lives of these representatives. "At this point, the world falls apart for a person like this. He...

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