
The anachronism of coffee shop taxation
To understand how much the tax laws hurt the self-employed who want to work abroad, it is enough to open Netflix.
On the one hand, MAD-MEN presents the business world as it was in the 1950s when our tax laws were designed. Tie-dyed men (and few women) arrived at fixed offices, at fixed hours, for fixed work. In that world, the separation between business and private expenses was possible.
The modern-day equivalent is Suits - where, alongside the tie-dyed offices, a lot of business is conducted in cafes, pubs and golf courses. How can Harvey be expected to recruit customers without cocktails? From Mike to sell chamber tests or Psychometric scores No Starbucks? Not to mention Rachel!
The Israeli business world is less glamorous than Manhattan, but real estate prices are similar and push many entrepreneurs and businesses to conduct themselves in coffee shops, where they rent a table, internet, cleanliness and atmosphere for the price of a soy cappuccino for two hours of work. This transaction is not 'incidental' to the tax laws, but is a necessary part of the business ecosystem of the world in which we live.
The 'Coffee Office' company tried to adapt the tax laws to this world by separating the 'rents' that the coffee shops charge for their business services from the payment they take for hot water, coffee beans and a small chocolate cube. Unfortunately Internal Revenue Service She refused the hand extended to her and is using her position to perpetuate an inconsistent position (ibid Wework), not reasoned (I.E a speech Eran Yaakov) and fiscally unaffordable.
Therefore, an in-depth analysis requires us to recognize that coffee is supposed to be a recognized expense, and if the judicial branch and the executive branch fail to get us there. Maybe it's time for the legislative authority to intervene - after all, it seems that in Israel there are 2-3 mandates of taxpayers who work in cafes...