Intel Pays Israel Tax On Mobileye Deal In Dollars To Keep Shekel Down
Graphic by Angelie Zaslavsky
Israel sought to prevent the shekel rising further on Tuesday by agreeing to allow Intel Corp to pay the tax due on its planned purchase of Israeli autonomous vehicle technology firm Mobileye in dollars.
Intel agreed to buy Mobileye for $15.3 billion in March in a deal which, if completed, is expected to result in a capital gains tax payment of $1 billion to $1.5 billion.
Israel had initially believed the money would fund tax cuts, but the central bank was worried converting such a large sum from dollars would further strengthen the shekel, which Bank of Israel officials have said is “over-valued.”
The Israel Tax Authority, accountant general and Bank of Israel said in Tuesday’s joint statement that Intel will be able to pay the taxes derived from the Mobileye transaction in U.S. dollars “with the aim of preventing an impact on the exchange rate and over-appreciation of the shekel.”
The shekel has gained 7 percent against the dollar so far in 2017 to a 27-month high of 3.6. It is also close to a 15-year peak versus the euro and at an all-time high against a basket of currencies.
I’m personally matching all gifts to the Forward, up to $36,000. Can I match your gift now?
Hello, fellow Forward reader! I’m Joel Brown, a Forward reader and supporter for more than 15 years, and currently the chair of the board of directors.
I’m an avid Forward reader because it ticks so many of my essential boxes: excellent journalism, Jewish focus and diverse viewpoints. In today’s political climate, what I most appreciate is the Forward’s independence — made possible by the generosity of its membership.
The Forward is committed to bringing you unbiased, nuanced Jewish news. From my position as board chair, I see an exciting future as we expand our position as the definitive independent voice of contemporary American Judaism.
— Joel Brown, Forward board chair
Support our mission to tell the Jewish story fully and fairly.
