Israel Tax Authority to pay informers for ratting on tax evaders

The Israel Tax Authority is looking for ways to increase its collections in these tough times, so it is using tried and true methods: It will now pay informers 20% of any fines collected when they rat on tax evaders.

"It is impossible to estimate tax evasion in Israel. I believe the lower the tax rates, the lower the amount of tax evasion," said ITA head Yehuda Nasradishi on Thursday.

He added that he sees no difference between someone who robs a bank or store and one who cheats on his taxes.

Nasradishi said the authority receives large amounts of information from the public through its Internet site, and will double the percentage of the fines paid to informers after they are handed down by the courts. Informers will also collect the money if the suspect reaches a compromise with the taxman on unpaid taxes.

He said the recent Supreme Court decision ordering the ITA to reveal the names tax evaders who reached an agreement with the authority over unpaid taxes, wold lead to more indictments being filed as fewer people will want to reach a compromise now. Of course, Nasradishi does not use the term informer. He refers to them as good citizens.