Knesset: Taxmen's Wages Based on High Bills

Income tax inspectors may use various means to artificially inflate taxpayers' bills in order to increase their own wages, according to a report prepared by the Knesset Research and Information Center that was published last week.

Freelancers or individuals with more than one employer sort out their income tax situations with the clerks at the Tax Authority.

The inspector, usually an accountant, is supposed to oversee the files and make sure that taxes are being paid in accordance with the law.

The Knesset report asserts that these inspectors do not receive regular salaries and are instead compensated in accordance with their tax assessments and the amount of income tax revenues thatthey bring in.

The methods used to increase tax payments, according to the report, include waiting to forward rulings until the next calendar year, shifting revenues from one year to another and among taxpayers in the same family, in order to confuse the system's computer, as well as simply pressuring taxpayers into reporting higher returns.

The authors of the report recommend examining the possibility of simultaneously breaking the link between taxes levied and the compensation paid to the inspectors and also raising the salaries of the latter.

The Tax Authority, in a response, said it "categorically rejects the claim that inspectors are measured and compensated in accordance with the taxes paid for their files."