Israel Launches Compensation Program for Businesses Targeted by Extortion
Translated & summarized from Israel Hayom by baba
The story in 5 lines · by baba
- Israel's Tax Authority offers compensation for extortion victims.
- Businesses can claim up to 2 million shekels for damages.
- The program covers property and home damage from protection money refusal.
- Claims require a police report and denied insurance coverage.
- Damages must be assessed by tax officials before repairs.
Israel's Tax Authority has opened a new compensation track for business owners who have suffered damages due to extortion, commonly known as "protection money." Under this pilot program, eligible business owners whose property or homes were damaged as a result of refusing to pay protection fees can file a claim for compensation, with a maximum payout of 2 million shekels.
The initiative, operating under Government Decision 4299, covers damages that occurred between September 24 and November 23, 2026. To qualify, businesses must be legal, possess a valid operating license, and have an active file with the Tax Authority. The compensation is intended for damages directly affecting business assets such as buildings, inventory, or equipment, or the owner's residence, stemming from a refusal to pay extortion fees.
Eligibility requires that a police complaint has been filed. Claimants must also demonstrate that they could not obtain insurance coverage for malicious damage, even if previously insured for such risks, or that their insurance claim was denied. Additionally, they must have complied with security and risk-reduction measures stipulated by their insurance company. For structural damage, proof of legal construction is also necessary.
Claims must be submitted online to the Tax Authority's Compensation Fund within seven days of the damage occurring. It is crucial not to repair the damage before a property tax appraiser has assessed it, as doing so could jeopardize the claim. However, immediate measures like clearing glass and debris are permitted. The compensation covers direct damages only, excluding indirect losses or harm to third parties. The Tax Authority expects claims to be processed within eight months.
