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In The News
   
 
 

 

In The News

 

September 17 - Will Israel be the World's First 'No Cash' Society?

Article: Israel And The Last Days
 
The government on Tuesday authorized establishment of a committee that will examine ways to eliminate cash from the Israeli economy the better to prevent citizens from cheating on their taxes. The committee will be chaired by Harel Locker, director of the Prime Minister's Office.

Cash is easily passed from individual to individual, and transactions using cash can take place without the tax man's supervision. Not so electronic transactions; with modern computers, banks can keep tabs on how much people deposit into their accounts and how much they withdraw, while credit card companies have an up to the second record of how much people spend.

Members of the panel will include top staff from the Israel Police, the Tax Authority, the chairman of the Government Authority on Money Laundering and Terror, the Bank of Israel's income and payments director, State Attorney's office officials, and more. According to many of these officials, cash is bad because it allows individuals to get out of their tax payment responsibilities. Today, an enterprising tax collector cannot easily compare income and outflow. While he may suspect that a person living beyond his reported means is cheating on his taxes, there is no way to know for sure, without solid evidence. In a cashless economy, all records will be electronic, and checking who makes what and how much they owe in taxes and collecting it before it gets to their account will be a much simpler matter, the theory goes.

 
 

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