Six-month extension: Lawyers, CPAs and dentists can register as partnerships until March 2027

The Registrar of Partnerships has delayed by six months the enforcement of sanctions against unregistered partnerships, following a Globes exposé and a request from the Institute of Certified Public Accountants. Lawyers, CPAs, and dentists will be able to register as partnerships until March 2027.

The Registrar of Partnerships and head of the Corporations Authority, Adv. Shuli Avni-Shoham, announced a six-month delay in imposing sanctions against unregistered partnerships in Israel, following a Globes exposé and a request from the president of the Institute of Certified Public Accountants. This means lawyers, CPAs, dentists, and other professionals organized as partnerships can register as partnerships until March 31, 2027. About a month ago, the Registrar sent 22,370 warning letters to unregistered partnerships, threatening sanctions within 45 days and the transfer of information to the Tax Authority. The president of the Institute of Certified Public Accountants, CPA Chen Schreiber, demanded a freeze on proceedings, arguing the letters caused concern and uncertainty. In her response, the Registrar confirmed the delay but clarified that the dialogue with the Institute is not a condition for exercising her authority and that the move is already yielding a significant increase in registrations in the partnerships register. The background to the move is a State Comptroller's report criticizing the lack of enforcement of the registration requirement, which caused a loss of hundreds of millions of shekels in taxes annually.