Baba Sali Foundation Sues Tax Authority Over Rabbi's Debts

The Baba Sali Foundation has filed a lawsuit against the Israel Tax Authority and Rabbi Baruch Abuchatzeira, known as the Baba Baruch, seeking to invalidate tax liens placed on property associated with the Baba Sali compound. The Tax Authority placed liens on assets in late July 2026, citing alleged tax debts owed by Rabbi Baruch Abuchatzeira, the son of the revered Rabbi Yisrael Abuchatzeira, the Baba Sali. The foundation argues that the seized assets are its own property and should not be linked to the rabbi's personal tax obligations.

The lawsuit, submitted to the Ashdod Magistrate's Court, requests a declaration that the tax debts are not the foundation's responsibility and an order for the Tax Authority to immediately cancel the collection proceedings and liens. Rabbi Baruch Abuchatzeira has led the Baba Sali compound since his father's passing.

This is not the first financial entanglement for Baba Baruch with the Tax Authority. In August 2022, a court ordered him to pay millions of shekels for income totaling approximately 59 million shekels earned between 2003 and 2011. The Tax Authority contended this was taxable professional income, while Baba Baruch claimed the funds were personal gifts or donations passed through to charities. The Tel Aviv District Court rejected his arguments, ruling the income was taxable.

The Ashdod Magistrate's Court is now expected to determine whether the foundation's assets can be linked to Baba Baruch's alleged tax debts and if the liens should be lifted.