The Israel Tax Authority is seeking billions of dollars in taxes from Wiz, a cybersecurity company recently acquired by Google for $32 billion, over the location of its intellectual property. Wiz claims its intellectual property is based in the United States, which would reduce its tax liability in Israel, while the Tax Authority argues that much of the technology was developed in Israel and should be taxed accordingly. The dispute centers on whether the intellectual property was transferred from Israel to the United States and how much of Wiz's value is attributable to assets created in Israel. Past cases involving major tech acquisitions have seen similar disputes, with outcomes ranging from significant tax payments to partial exemptions. Final regulatory approval for the Google-Wiz deal is expected soon, but the tax issue remains unresolved as both sides seek an agreement.
image sourced from original article at https://en.globes.co.il/en/article-israel-tax-authority-demands-tax-on-wiz-ip-1001531823Original article source: https://en.globes.co.il/en/article-israel-tax-authority-demands-tax-on-wiz-ip-1001531823
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