Chamber Tax Committee headed by Yitzchak Chikorel, International Tax Leader at Deloitte Israel a Chamber member, is addressing a recent development in the importation taxes arena.  Due to recent court decision in the case of Gottex, the Israeli tax authorities are now considering adding royalty payments made by Israeli concessionaires to the foreign owners of the brand, as part of the value of the import value of their goods for custom duty purposes. This may lead to double tax liability, the first is the withholding taxes on the royalty payments, and the second is the custom duty on the increased value of imported goods. 

That development may lead to additional consequences in the analysis of payments made for the import of goods and braking those payments into different economical components (like attributing part of the payments to the trade mark or goodwill thus treating part of the payment as royalty).

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