Offenders face significant fines & those splitting payments can be jailed.
This amount refers to payments to businesses, including the self-employed and freelancers. Payments between private individuals (for example, when purchasing a property) have a higher cash threshold though that too is set to drop next week.
Around NIS 5 billion have already been collected in fines since the restrictions were voted into law. Tens of thousands of audit-raids on businesses have been conducted by the Tax Authority with thousands of violators penalized. In 2022 alone, around 6,000 audits have been conducted so far, with 2,189 law-breakers identified, representing a sum of NIS 35 million in illicit transactions.
According to Globes, Tax Authority figures show a gradual increase in compliance with the law, from around 84 percent in 2019 to 92 percent in 2021 and 95 percent in 2022.
The stated purpose of the law is to force the general public to use digital means of payment rather than cash, so that transactions can be easily monitored. The theory is that this will stifle black market activity, limit opportunities for tax evasion, and even make it harder for terrorists to operate (purchasing weapons, paying operatives etc.)