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Intel to pay taxes from Mobileye deal in US dollars

Intel Corp. will be allowed to pay taxes derived from its $15.3 billion acquisition of Mobileye in US dollars if the sale is finalized, the Bank of Israel says, in an effort to prevent an impact on the exchange rate and an “overappreciation” of the shekel.

The matter was decided jointly by Israel’s Tax Authority, the Department of the Accountant General and the Bank of Israel.

Prime Minister Benjamin Netanyahu (third from left) meets with Intel Corp. CEO Brian Krzanich (to his left) and Mobileye founders Amnon Shashua and Ziv Aviram , respectively first left and first right; (Courtesy: Haim Zach, GPO)
Prime Minister Benjamin Netanyahu (third from left) meets with Intel Corp. CEO Brian Krzanich (to his left) and Mobileye founders Amnon Shashua and Ziv Aviram , respectively first left and first right; (Courtesy: Haim Zach, GPO)

According to estimates, Israel is scheduled to get some $1 billion -$1.5 billion in tax revenues from Intel’s acquisition of Mobileye, the Jerusalem-based developer of advanced vision and driver assistance systems.

The US giant said in March it had entered into an agreement to buy Mobileye in an effort to position itself as a leading technology player in the fast-growing self-driving car market.

— Shoshanna Solomon

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