What if I was genuinely unaware that I had Israeli tax obligations?

Genuine unawareness is a mitigating factor the ITA considers when deciding on penalty reduction, and it is commonly cited in voluntary disclosure submissions. However, unawareness is not a legal defense to the obligation itself — the tax is owed regardless. What it does support is a stronger case for a full waiver of administrative penalties, since the ITA distinguishes between negligent non-compliance and deliberate evasion. Your adviser will typically explain the circumstances in the submission letter, which genuinely affects the outcome.