The Israel Tax Authority has announced a "precedent-setting" ruling of a Central District Court issued 6 June 2017 concerning whether an IP transaction following a share transaction was a simple sale of IP or rather a  transfer of entire business operations. The case involved Israel-based start-up Gteko Ltd., which was acquired by Microsoft Corporation in 2006 through a USD 90 million share acquisition. After the share acquisition, Microsoft hired all of the Gteko staff and eight months later acquired Gteko's IP assets for USD 26.6 million. Following the transactions, the IP acquisition was challenged by the Israel Tax Authority. The Tax...