The Apax Partners private equity investment fund will not have to pay tax on its profits from its investments in Bezeq and Tnuva if and when it sells its holdings.
The reason: The fund has reached a deal with the Tax Authority exempting it from these payments, in light of its large investments in Israel. Many of the investors in the fund are institutional investors who are in any case exempt is such instances, an investment fund industry source said .
Apax bought control of Tnuva, in conjunction with Mivtach Shamir, for about $1 billion, and invested a similar amount in Bezeq. Apax Partners declined to comment on the matter. The Israel Tax Authority also refused to comment.
The Disney family's Shamrock fund also received significant tax breaks, according to industry sources. In general the Tax Authority grants such exemptions to large funds which invest over half a billion dollars in Israel for a number of years. The authority is preparing a change in the law to provide such tax exemptions to all foreign investors in Israel operating through investment funds.
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