Our firm, Simon Accountancy and Economic Consulting, specializes in providing accounting and trust taxation services. Our firm assists in tax planning related to trusts, opinions, submission of annual reports and provides professional guidance for trusts. Our firm has the experience and knowledge to provide all the services required for trust operation.
A trust is a legal concept, in practice it is a legal relationship between three necessary parties: the creator of the trust, the trustee and the beneficiaries. In addition, there may be another factor in this relationship – the 'Trust Shield', as its name is to protect the purposes of the trust if necessary. The relationship is formed when the deed of trust is signed, usually when a deed of trust is signed, then a letter of wishes will be attached to it where the purposes of the trust are specified.
The deed of trust grants the trustee rights to act in trust according to the deed of trust and in accordance with the law, we emphasize that this is not a mission. In Israel, the trustee holds the trust assets through a trust asset holding company, which is transparent for tax purposes. Therefore, any asset under the trust will be registered under the company for holding trust assets: real estate assets, bank accounts, investment accounts, etc.
The reasons can be varied, but the main reasons are: weddings, old age, caring for children with disabilities, protection of family assets, intergenerational transfer, old age and more.
Every year, our firm prepares and prepares hundreds of reports for taxpayers with high complexities in terms of Israeli tax law, quite a few of whom are creators in trusts, trustees in trusts and beneficiaries in trusts. In recent years, there has been an upward trend in the Israeli tax authorities' requirement to report trusts and their relevant parties (creators, beneficiaries and trustees). The increase derives from Amendment 197 to the Income Tax Ordinance in 2014. The classification of the trust is a significant factor regarding the reporting and taxation obligation of the trusts and the place where the income of the trust is generated. As of today, and as the years go by, the legislation continues the trend of increase in the reporting requirement and states that beneficiaries under various classifications must also report. Our firm Simon Accountancy and Economic Consulting has accumulated extensive experience and knowledge in handling the ongoing conduct vis-à-vis the tax authorities and submitting annual reports to trustees, creators and beneficiaries of trusts.
Trust taxation in Israeli tax law is a complex and multifaceted field, a thorough understanding of the law and familiarity with its small "corners" is required in order to ensure that the tax result is optimal for our clients. Our firm has the knowledge and experience to advise on tax issues arising in the field of trusts, we can assist in writing opinions relating to trusts, and any issue related to or arising from the field of trusts.
Our firm, as an accountant for trusts, will be happy to assist you in receiving the best service and treatment. As stated, we also assist creators, trustees and beneficiaries in submitting reports to the tax authorities.
