Israel Gives Diamond Trade Time to Come Clean

Ramat Gan: Diamond companies in Israel have been granted another two months to voluntarily disclose their assets, inventory and unreported income to the Tax Authority, reports Rapaport.

Firms have until the end of February to submit the full report of disclosures, as long as they declared their intention to do so by December 29, the Israel Diamond Exchange and Israel Diamond Manufacturers Association said in a letter to traders. Additional seminars are being held in the bourse to clarify what’s required of businesses, with a special emphasis given to inventory valuations.

The industry hopes the scheme will end the long-running investigation by the Tax Authority into the trade’s activity. Last month, the Israel diamond trade signed an agreement with the Tax Authority to change the way companies are taxed. Whereas the calculation was based on revenue before, it will be based on profit from 2018.