Israel updates

Aviation

Contributed by Levitan, Sharon & Co
Lightning damage to aircraft on incoming flights – Aviation Services Law special circumstances
  • Israel
  • 13 November 2019

In most cases, flights are operated by aircraft that arrive at an airport from a previous flight. As such, flights are sometimes delayed or cancelled due to a delay or cancellation of the previous flight. The Tel Aviv District Court recently denied a motion for leave to appeal filed by a passenger whose claim regarding the cancellation of his flight due to lightning damage to the aircraft which had occurred during the previous flight was denied by the Tel Aviv Small Claims Court.

What is considered a cancelled flight under the Aviation Services Law?
  • Israel
  • 14 August 2019

The Small Claims Court recently rejected two passengers' claim that their flight should be considered a cancelled flight under the Aviation Services Law. The case examined whether an airline should pay compensation for a missed connecting flight when passengers book two flights from the same company with a short connection time.

Courts underline passengers' duty to arrive at departure gate on time
  • Israel
  • 29 May 2019

Under the Aviation Services Law (Compensation and Assistance for Flight Cancellation or Change of Conditions), passengers who are denied boarding are entitled to compensation. However, in two recent district court judgments concerning passengers that were denied boarding, the courts found that passengers must arrive at the boarding gate on time. As this duty had not been fulfilled in either case, the airlines were not obliged to pay compensation.

When are technical malfunctions considered special circumstances?
  • Israel
  • 27 February 2019

The Beit Shean Small Claims Court recently declined a claim for compensation under the Aviation Services Law due to a delayed flight. The plaintiff had booked a return flight from Tel Aviv to Amsterdam with Arkia Airlines, which arrived in Amsterdam late after a nine-and-a-half-hour delay due to a technical fault. The court dismissed the claim and found that Arkia had proved that the technical malfunction had been caused by a fault in the aircraft's wing shelving, which had been beyond the airline's control.

Aviation Services Law does not apply to domestic flights outside Israel
  • Israel
  • 28 November 2018

The Tel Aviv Small Claims Court recently declined a passenger's claim for compensation against Qantas and Worldwide Travel and Tourism Ltd, concluding that as the flight in question was a domestic flight within New Zealand, Israeli law did not apply. The court stated that a 'flight operator' is defined in Clause 1 of the Aviation Services Law as an operator that operates flights to and from Israel. Therefore, the law does not apply when connecting flights to Israel are operated by a different airline.


Banking

Law for the Reduction of Cash Use introduced
Fischer Behar Chen Well Orion & Co
  • Israel
  • 11 January 2019

The Law for the Reduction of Cash Use, which came into force on 1 January 2019, imposes certain restrictions on the use of cash and cheques that do not name the payee. The law aims to reduce cash transactions in an effort to fight financial crime and money laundering and foster the use of more modern and efficient payment methods. Violation of the law may constitute a criminal offence, resulting in financial penalties and imprisonment.


Capital Markets

Initial public offerings – an overview
Fischer Behar Chen Well Orion & Co
  • Israel
  • 02 July 2019

The second half of 2018 was characterised by a sharp decrease in the number of equity and debt initial public offerings in Israel and a significant rise in bond yields. The Tel Aviv Stock Exchange (TASE) and the Israeli Securities Authority continue to promote various initiatives to encourage non-Israeli issuers to list on the TASE, including the publication of a bulletin clarifying the rules that apply to the public offering of securities, listing and delisting and ongoing disclosures by dual-listed companies.

New bulletin aims to clarify dual listing process
Fischer Behar Chen Well Orion & Co
  • Israel
  • 15 January 2019

The Corporate Finance Department at the Israel Securities Authority recently issued its Staff Legal Bulletin on dual-listed companies. The bulletin is a summary of the most up-to-date information on the issuance, reporting, listing and delisting of dual-listed companies and is intended to clarify and reflect these processes for dual-listed companies and companies considering dual listing.

Committee report on promotion of publicly traded infrastructure investment funds
Fischer Behar Chen Well Orion & Co
  • Israel
  • 04 December 2018

An inter-ministerial committee was recently set up to promote the establishment of publicly traded funds for investment in infrastructure. The committee was formed to examine and recommend measures and actions that would encourage the establishment of traded infrastructure funds in order to increase the availability of financing sources for infrastructure projects, reduce the financial costs of these projects and enable small investors to directly participate and own these projects.

Supreme Court reaffirms application of foreign law to dual-listed companies
Fischer Behar Chen Well Orion & Co
  • Israel
  • 06 November 2018

The Supreme Court recently confirmed that the liability for breaches of reporting obligations in the secondary market by dual-listed companies is governed by the securities laws of the foreign trading jurisdiction. The governing law with respect to the liability of a dual-listed company's external auditors is also the law of the foreign jurisdiction in which the company's shares are traded.

Demutualisation of Tel Aviv Stock Exchange: opportunities and challenges
Fischer Behar Chen Well Orion & Co
  • Israel
  • 28 August 2018

The Israeli Securities Law was recently amended with the goal of making the Tel Aviv Stock Exchange (TASE) more competitive, efficient and profitable, by changing its ownership structure. This change of ownership structure will allow private investors, in addition to institutional investors, to acquire means of control over TASE. This can be viewed as a privatisation of sorts, as TASE is Israel's only stock exchange and is widely viewed as a national asset.


Competition & Antitrust

Contributed by Tadmor Levy & Co
Competition authority initiates wide-reaching reform of merger reporting regulations
  • Israel
  • 15 August 2019

The Israel Competition Authority recently published a draft amendment to the Antitrust Regulations (Registry, Publication and Reporting of Transactions) for public consultation. The draft includes significant and far-reaching changes regarding the scope of the transactions that will require merger approval by the competition commissioner, as well as the extent of the disclosure that will be required when filing merger notifications.

Draft guidelines on competition law amendments published
  • Israel
  • 30 May 2019

In January 2019 Parliament passed a comprehensive amendment to the Economic Competition Law 1988. Among other things, the amendment introduced an alternative definition of a 'monopoly' based on a market power test rather than market share and significantly increased the maximum cap for monetary administrative penalties which can be levied on corporations. To put the new rules into practice, the Israel Competition Authority recently published draft guidelines on both of these matters.

Major competition law reform comes into force
  • Israel
  • 14 March 2019

Parliament recently passed an amendment to the Economic Competition Law that represents its most significant overhaul since its enactment in 1988. The amendment covers nearly all of the law's substantial chapters and affects the regulation of restrictive arrangements, the merger control regime, the regulation of monopolies and criminal and administrative enforcement measures.

Transition to self-assessment regime: ICA publishes amended block exemptions
  • Israel
  • 24 January 2019

The Israel Competition Authority recently published amended versions of the Block Exemption for Ancillary Restraints in Mergers and the Block Exemption for Joint Ventures. The amended block exemptions intend to lower the regulatory burden imposed on businesses and enable the fast implementation of efficient arrangements by expanding the use of block exemptions.

Antitrust commissioner receives new powers to protect parallel imports
  • Israel
  • 13 September 2018

In recent years, parallel and private imports have become an important factor in the public debate surrounding the cost of living in Israel. The level of competition (and ultimately prices) in many product markets is heavily dependent on imports. The recent amendment to the Restrictive Trade Practices Law aims to provide the antitrust commissioner with the authority to prevent conduct by official importers that may hinder competition from parallel and private imports.


Corporate Tax

Contributed by Fischer Behar Chen Well Orion & Co
Digital tax developments
  • Israel
  • 13 December 2019

The Organisation for Economic Cooperation and Development (OECD) set a goal to deliver by 2020 a final report that includes a consensus approach with respect to the challenges of the digital economy, both the allocation of taxation rights (pillar one) and Base Erosion and Profit Shifting issues (pillar two). What are the latest proposals of the OECD and where does Israel stand?

Digital tax developments
  • Israel
  • 06 December 2019

This article has been removed at the request of the contributing firm.