Check Point Software Technologies says it will pay the Tax Authority NIS 520 million ($147 million) within a month, putting at NIS 4.3 billion the sum the government has collected from companies freeing up so-called trapped profits. The Tax Authority had targeted a total of NIS 3 billion in the program.
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Check Point's announcement came at 11:45 P.M. Monday night, 15 minutes before the program expired.
Trapped profits are funds that large companies accumulated under the old Encouragement of Capital Investments Law, under which firms received tax breaks in return for investing in Israel.
“After intensive talks between the Tax Authority and the various companies, a large portion of the trapped profits was released and tax was paid on it according to the law, to the benefit of Israel’s citizens and the state," Moshe Asher, the director general of the Tax Authority, told TheMarker. "The fact the government’s goal of NIS 3 billion was surpassed by NIS 1.3 billion — almost 50 percent — is no trivial matter. Without a doubt it’s a great success.”