Joulus Gazit & Co.


“Past Losses Can Be Set off Against Profit from a Random Transaction – Case Law”

The article deals with a judgment in an appeal filed by our firm against a decision of Tel Aviv 3 Assessing Officer not to allow Speedy – Link Ltd. to set off past losses against profits in real estate brokerage transactions, which were unrelated to the company’s original business (running an Internet Cafe). Judge Harry Kirsh referred in his reasoned judgment to the financial purpose underlying the principle of allowing past losses – collection of tax on the taxpayer’s real enrichment. He maintained that there should not be an artificial separation, in applying more flexible rules than those applied until now by the Israel Tax Authority regarding the set off of past losses, as these rules created a severe financial distortion and were unfair to many taxpayers.
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