Israel tax amnesty reveals $50.7M in undeclared crypto

Israel’s voluntary tax disclosure program has produced 58 crypto-specific filings reporting about 145.8 million shekels ($50.7 million) after the Israel Tax Authority removed the option for anonymous filings in August 2025. The authority launched the program in August 2025 and it runs through Aug. 31, 2026. To date taxpayers have submitted 289 disclosure requests across all asset types, declaring about $236 million in concealed capital and resulting in roughly $14 million in tax receipts. Authorities had projected between $700 million and $1 billion in collections. The State Comptroller earlier estimated about $1.04 billion in unrealized crypto tax revenue. Officials and tax advisers point to the removal of anonymous filings in August 2025 as a key factor in low participation. Under the previous rules, taxpayers could begin the disclosure process without giving their identity while they assessed potential exposure; after the change filers must enter with full disclosure. Iftach Simhony, partner and head of the tax department at Prof. Bein Law Office, said the policy “deterred taxpayers” and meant filers were exposed before knowing their actual exposure, a condition he said is particularly difficult for holders of digital assets with complex transaction histories and unclear liabilities. The program includes a simplified “green track” for smaller claims, including some crypto gains, but advisers say the lack of early anonymity limited the track’s appeal. The Israel Tax Authority increased efforts to identify undeclared crypto income before and after the program launch, working to trace funds moving through digital wallets, offshore exchanges and peer-to-peer channels. Earlier voluntary disclosure rounds in 2011–12, 2014–16 and 2017–19 handled about 9,000 cases and produced about $1.74 billion in tax receipts. With fewer than 300 filings so far and modest collections, the current disclosure round is on pace to report significantly lower revenue. The voluntary track remains open until Aug. 31, 2026; advisers caution that delaying disclosure could increase enforcement risk if tracing capabilities continue to improve, and government officials have not revised collection targets publicly.