According to an amendment to the National Insurance Law, a statute of limitations will apply to the collection of debts by the National Insurance. The meaning of the statute of limitations is that the National Insurance will be limited to send payment demands to debtors within seven years at most from the date for payment of insurance premiums. If a demand for the payment of the debt was not sent during the aforementioned period, and if it was sent - no collection procedures were taken by the National Insurance or an offset was not made within seven years from the date of the demand, the insurance premiums and any debt arising from them, including by way of offset, will not be collected, and failure to pay the outdated debt will not impair the rights for an allowance or benefit.
In the event that there is an obligation to report to the National Insurance or an obligation to register in the National Insurance registers that was not met in time regarding the period during which the insurance premiums are required, the limitation period will begin only from the date on which the obligation was met or from the date on which the National Insurance received the information regarding the liability for the insurance premiums, whichever is earlier. In cases where the determination of the National Insurance contributions depends on the determination of a final assessment by the Income Tax, the statute of limitations will begin to count from the date of the determination of the assessment by the Income Tax.
The beginning of the amendment to the law is on the 10th of Tevet 5555 (January 1, 2015) and the statute of limitations will apply to the payment of insurance premiums whose payment date is on this day and beyond, and also to insurance premiums that on this day have not yet passed seven years from the date of their payment.
Regarding the payment of insurance premiums that on this day seven years have passed and sixteen years have not yet passed from the date of their payment, the National Insurance may send billing requests only until the 24th day of Sivan 556 (June 30, 2016) through the mail. If the National Insurance does not send a demand for the payment of the debt, will not take collection procedures and will not offset the debt by the aforementioned date, the insurance premiums and any debt arising from them will not be collected from the debtor for their payment, including by way of offset, and failure to pay the debt that has become obsolete will not affect the rights to an allowance or benefit.
Insurance premiums and any debt arising from them, the due date for which is due before the 13th day of Tevet 5599 (January 1, 1999), and until the day of publication of the amendment to the law, no procedures were taken to collect them or no set-off was made, will not be collected, including by way of set-off, and their non-payment will not will affect the rights to an allowance or benefit.
The author - the editor of the monthly "Knowledge for Information" and the center of the tax field at the accounting firm H.P.S. Business Information Ltd.
