Taxation of non-profits, associations, and public institutions

In recent years, the activity of the third sector has been expanding to many areas. Our firm acts on the tax implications related to this sector opposite the assessing officers and high-level administrators.

Since non-profits and public institutions are exempt from income tax and VAT, many such entities are required to deal with claims by income tax and VAT authorities so that their activity does not fall under the conditions for the exemption; with arguments of failing to comply with the eligibility conditions for the exemption or with arguments that some of the public institution’s activity is business activity. In these cases large-scale educational or health activity is exposed to unexpectedly dealing with the tax authorities in a manner that may considerably impact the core of the public activity.
Our firm represents large non-profits opposite the income tax and VAT authorities, both for the purpose of making preliminary tax rulings regarding the entity’s classification, hearings at the assessment proceedings and courts, and preparing legal opinions on these issues.