רישום חוזר של נכסים בעקבות הליך גירושין
1. Factual Background
1.1. Mr. X and Mrs. Y
(together the "Couple"), citizens of both "Country
Z" and Israel, became tax residents of Israel during the 1990's ("Aliyah").
A decade later the parties separated, Mr. X ceased to be a tax resident of
Israel (left for Z) and a couple of years later the Couple divorced.
1.2. Following the Couple's
Aliyah and while they were still together they purchased three properties
("Properties") in country Z. The Properties were held
in trust for Mrs. Y and the trustees were the Couple's children, one of
whom is an Israeli tax resident. No notice of the trust was required to be
given to any authority.
1.3. The Couples' divorce
proceedings ended in an agreement, which was sanctioned by the Rabbinical
Court. Pursuant to the said agreement the Properties were to be re-registered
in Mr. X's name, which registration was carried out.
2. The Issue
What are the
Israeli tax consequences of the re-registration of the Properties and what
filing duties, if any, are prescribed in conjunction with the said
3.1. In this tax opinion we
examined, amongst others, the applicable legislation with respect to the
taxation of real estate, as well as the common longstanding practice of the
Israeli Tax Authorities with respect to capital gains arising out of
divorces. The aforementioned examination
led us to the conclusion that a valid contention may be
raised that the re-registration does not constitute a disposition and hence no
tax return need be filed.
3.2. In the alternative, the tax
opinion suggested that one could contend either joint ownership of the
Properties and consequently Mr. X was reregistered only as to 50% of the
Properties or that according to the Israeli Tax Ordinance no Israeli tax is due
on re-registration of those assets of which the trustees are non-residents.