Latest updates

Competition Tribunal provides important guidance on retroactive discounts
Tadmor Levy & Co
  • Competition & Antitrust
  • Israel
  • 05 November 2020

The Competition Tribunal's recent judgment thoroughly analysed the legality of target discounts offered by a dominant firm to its customers. The tribunal adopted a cautious approach towards retroactive target discounts, ruling that such pricing schemes could be condemned even if an equally efficient competitor was not excluded by the target discount and the level of market foreclosure was limited.

COVID-19: entry of foreign executives and businesspeople
Fischer Behar Chen Well Orion & Co
  • Employment & Immigration
  • Israel
  • 04 November 2020

In response to the COVID-19 pandemic, Israel imposed significant restrictions on foreign nationals' entry into Israel. The Population and Immigration Authority and the Ministry of Health recently published a procedure that allows executives and businesspeople from so-called 'green countries' to obtain a permit to visit Israel for business visits of up to seven days.

Lack of safety measures does not repudiate coverage as long as insurer has collected premium
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 20 October 2020

A recent case dealt with the question of whether an insured is entitled to insurance benefits for the loss of their car by theft when it lacked the security measures required by the insurer. The Insurance Contract Law enables the award of partial benefits (Article 18), but in this case the insurer presented no evidence to support the application of this remedy. Thus, the court ordered the insurer to pay the full claim.

Supreme Court rules on 3% capitalisation interest for subrogation claims filed by NII
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 06 October 2020

The Supreme Court recently answered a crucial question which could affect the reserves for bodily injury claims of all Israeli insurers and hence affect their balance sheets. According to the decision, the relevant annual capitalisation interest that should apply in respect of subrogation claims filed by the National Insurance Institute (NII) is 3% regardless of the fact that the NII paid allowances to the injured based on an annual capitalisation interest of 2%.

Recent tax ruling provides for priority technological enterprise status for cloud services
Fischer Behar Chen Well Orion & Co
  • Corporate Tax
  • Israel
  • 25 September 2020

The Tax Authority recently published a tax ruling addressing priority technological enterprise status with respect to an Israeli company that engages in the development and provision of cloud service platforms. The ruling provides that, subject to the Investment Law, income derived from the right to use a company's cloud platforms will be classified as income generated by a technological enterprise and, therefore, will be entitled to the Investment Law's reduced tax rates.

Parliament passes amendment to Equal Pay Law for Male and Female Workers
Fischer Behar Chen Well Orion & Co
  • Employment & Immigration
  • Israel
  • 23 September 2020

Parliament recently passed the Equal Pay Law for Male and Female Workers (Amendment 6) (5780-2020), which aims to prevent discrimination based on sex with respect to salary and other work-related benefits. The law is based on the presumption that female and male workers employed at the same workplace should receive equal pay for the same work or for substantially similar work and provides another tool to remedy the gender pay gap.

Employers' engagement with service and manpower companies
Fischer Behar Chen Well Orion & Co
  • Employment & Immigration
  • Israel
  • 26 August 2020

According to Israeli law, companies can hire employees via third-party providers, which are then responsible for fulfilling employers' various statutory obligations. Such third-party providers are referred to as 'service and manpower companies'. However, Israeli law provides that if a manpower company's employee continues to provide services to another company under this arrangement for more than nine months, the latter will be considered to be the actual employer.

Foreign insurers' right of subrogation – time for revision?
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 11 August 2020

In November 2017 the Supreme Court approved a district court's decision that a foreign insurer which is not licensed under the Supervision Law is not entitled to file a subrogation claim in Israel. Notably, the Supreme Court is expected to readdress this decision in the near future. In view of its problematic outcome, it is hoped that the court will take this opportunity to reconsider its position and set a new and fairer precedent.

Engagement of consultants: when is a consultant an employee?
Fischer Behar Chen Well Orion & Co
  • Employment & Immigration
  • Israel
  • 29 July 2020

Potential exposure arises from companies' engagement of consultants because, following termination of the consultancy, the consultant may claim employee status and associated social benefits. The labour courts have established criteria for determining whether a consultant should be considered an employee, including the degree of the consultant's integration into the company and its activities.

COVID-19: exceptional cases in which Population and Immigration Authority will allow foreigners to enter Israel
Fischer Behar Chen Well Orion & Co
  • Employment & Immigration
  • Israel
  • 22 July 2020

Due to the COVID-19 outbreak, as of March 2020, Israel prohibited foreign nationals from any country from entering its borders, including citizens who held any kind of visa. Only foreign residents who could prove that their 'life centre' was in Israel could enter the country. In June 2020 the Population and Immigration Authority published a list of exceptional cases in which it will allow foreigners into the country. This article outlines these exceptional cases.

Insurance class actions due to COVID-19 pandemic
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 30 June 2020

Has the COVID-19 pandemic led to the filing of insurance class actions which are typical of such crises? This article discusses class actions relating to motor, business and apartment insurance based on the allegation that the insureds paid monies (eg, premiums) for a period during which they did not enjoy any or full consideration for these payments.

Intercompany transactions – burden of proving arm's-length pricing
Fischer Behar Chen Well Orion & Co
  • Corporate Tax
  • Israel
  • 26 June 2020

The Israel Tax Authority (ITA) recently published a tax circular to clarify cases in which a transfer pricing study filed by a taxpayer will be considered to fulfil legal requirements and thus shift the burden of proof in the assessment process framework to an ITA inspector, in contrast to the general rule that the burden of proof rests with the taxpayer.

Attorney general takes cautious and restrained approach regarding excessive pricing
Tadmor Levy & Co
  • Competition & Antitrust
  • Israel
  • 25 June 2020

The attorney general (AG) recently submitted his opinion regarding the applicability of the excessive pricing prohibition under Israeli law and the appropriate test for its application. Adopting the Israeli Competition Authority's current opinion regarding excessive pricing while opposing the broad approach taken by the court in the Central Bottling Company case, the AG maintained that the Supreme Court should determine that the Competition Law prohibits monopolists from setting unfairly high prices.

OnDemand Aviation industry trends – Israel
Levitan, Sharon & Co
  • Israel
  • 10 June 2020

Temporary amendments to the Aviation Service Law were recently presented to Parliament to help airlines deal with customer compensation claims during the COVID-19 pandemic, while industry players are also in discussions with the Ministry of Finance about possible government assistance. This video discusses these issues as well as the ever-increasing number of class actions filed against airlines in Israel over the past decade.

Impact of COVID-19 on patent ecosystem
Reinhold Cohn Group
  • Intellectual Property
  • Israel
  • 08 June 2020

The COVID-19 crisis has had a major impact on the patent ecosystem in Israel, including in relation to eminent domain, cooperation and collaboration between governments and companies, the distribution of patent filings and Israel Patent Office admin. As the crisis has removed most (if not all) of the barriers that until now have prevented people from working remotely, it is a possible solution that could help overloaded patent examiners in the months ahead.

Taxation of real estate investments in Israel
Fischer Behar Chen Well Orion & Co
  • Real Estate
  • Israel
  • 22 May 2020

The taxation of real estate investments is complex and depends on various factors, including the property owner's status (ie, individual or corporation), the nature of the asset (eg, residential property, commercial property or land) and the purpose of the investment (eg, producing rental income or entrepreneurial profit). This article summarises the main factors to be considered when contemplating real estate-related investments in Israel.

Zero-rate VAT on services to foreign residents – fact or fiction?
Fischer Behar Chen Well Orion & Co
  • Corporate Tax
  • Israel
  • 08 May 2020

The Value Added Tax (VAT) Law sets out that zero-rate VAT applies to the export of services to a foreign resident. However, recent judgments have interpreted such relief in a narrow manner and have significantly reduced the ability to charge zero-rate VAT on services rendered to foreign residents.

Precedential judgment: innocent insured doctrine applies in specific circumstances
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 21 April 2020

In a recent and precedential Supreme Court judgment, the court dealt with the application of the 'innocent insured doctrine' and determined that the doctrine applies in Israel. Hence, where an insurer is entitled to be discharged of liability towards an insured, in some cases, the exemption may not apply vis-à-vis other co-insureds. In this case, the doctrine did not limit the discharge of the insurer.

Population and Immigration Authority issues guidelines regarding visas for foreigners due to COVID-19
Fischer Behar Chen Well Orion & Co
  • Employment & Immigration
  • Israel
  • 15 April 2020

In light of the COVID-19 outbreak in Israel, and the significant restrictions imposed on foreign nationals entering Israel, the Population and Immigration Authority has issued a series of guidelines regarding visas for foreigners and foreign workers in Israel. This article summarises the relevant instructions.

COVID-19 and insurance litigation: current and expected trends
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 14 April 2020

The outbreak and spread of COVID-19 in Israel is affecting businesses and the movement of individuals, as well as significant reductions in commercial activity. This article examines how COVID-19 will affect insurance litigation and what can be expected in the long term.