Why is it so hard to collect inheritance tax?

The article examines the possibility of reinstating the inheritance tax that was abolished in 1981, against the backdrop of war expenses and the deficit. Eran Yaakov, former director of the Israel Tax Authority, explains the operational challenges in collecting the tax and the ways in which wealthy individuals can circumvent it.

The article examines the possibility of reinstating the inheritance tax that was abolished in Israel in 1981, against the backdrop of war expenses and the deficit that require the next government to seek additional sources of revenue. Eran Yaakov, former director of the Israel Tax Authority, explains that inheritance tax exists in most OECD countries, and has advantages such as reducing inequality, but also disadvantages such as double taxation. Yaakov emphasizes the significant operational difficulty in collecting the tax: property valuations, assets abroad, and the ability of wealthy individuals to circumvent it. He notes that additional legislation, such as a gift tax, would be needed to prevent the transfer of assets on one's deathbed. The article is an episode of the daily podcast of ynet, and presents an interview with Yaakov analyzing the challenges.

Why is it so hard to collect inheritance tax?