I filed incorrect figures. What should I do?

Our answer

Do not ignore the mistake or try to offset it in the next declaration. Keep the submitted return and receipt, identify the error and correct figure, and gather supporting records. Contact an accountant or tax adviser promptly to assess its significance and the appropriate documented approach to the assessing office. Uploading another document should not be assumed to amend transmitted figures automatically, and acceptance of a correction is not guaranteed. Unreported income, a material omission or an ongoing enquiry may also require appropriate legal advice.

A first declaration versus a subsequent declaration

A first declaration establishes a reference point. With no earlier declaration in front of you, it can be tempting to estimate and move on. Instead, locate acquisition records, existing debts and assets accumulated before opening the business, and keep the complete file.

For a subsequent declaration, start with the earlier submission: identify retained and sold assets, repaid debts and new items. Family and ownership changes may affect comparability. If an earlier error is found, review how to address it rather than offsetting it with a different figure in the new declaration.

Capital comparison: explaining the change

A capital comparison is more than a comparison of bank balances. Review movements in assets and debts, income and other funding, and uses such as taxes, living costs and unusual events. Significant items should have an explanation and evidence.

A simplified arithmetic example: net wealth increased by NIS 200,000, while available net income was NIS 300,000 and living costs and other uses were NIS 100,000. These figures can reconcile mathematically, but this is not a complete tax analysis. Documented gifts, family changes, timing and classification can change the result.