Jerusalem Court Revokes UNRWA Immunity, Orders Tax Payment
Translated & summarized from Mignews by baba
A Jerusalem court has ordered Bank Leumi to seize approximately 11 million shekels from UNRWA's account to cover municipal property tax debts. The court revoked the agency's immunity, ruling that Israeli law supersedes international agreements. The funds will be transferred to the Jerusalem municipality for tax arrears on two properties. The ruling follows a freeze on UNRWA's account in February 2024 due to terror financing suspicions.
The story in 6 lines · by baba
- Jerusalem court ordered Bank Leumi to seize 11 million shekels from UNRWA for tax debt.
- The court revoked UNRWA's immunity, stating Israeli law supersedes international agreements.
- The seized funds will cover municipal property tax arrears on two UNRWA-managed sites in Jerusalem.
- UNRWA's bank account was frozen in February 2024 over suspected terror financing.
- The agency failed to appeal tax bills for 2024 and 2025, leading to legal claims.
- Judge Haya Sandberg ruled that UNRWA's UN status does not grant automatic legal protection in Israel.
The Jerusalem District Court has ordered Bank Leumi to seize approximately 11 million shekels (about $3 million) from the UN Agency for Palestine Refugees (UNRWA) bank account and transfer the funds to the Jerusalem municipality. The money is intended to cover the agency's accumulated municipal property tax debt, known as "arnona." The court, presided over by Judge Haya Sandberg, dismissed UNRWA's arguments regarding diplomatic immunity, stating that the agency's legal immunity was based on a 1967 exchange of diplomatic notes that ceased to be valid after the Knesset passed a law prohibiting UNRWA's operations in Israel. The court emphasized that international agreements cannot supersede Israeli parliamentary legislation.
The financial claims stem from two major properties UNRWA has managed in Jerusalem for decades: a logistics complex in the Ma'alot Dafna area and an educational campus in Tzur Baher. Previously, the agency did not pay taxes due to its diplomatic status, but this changed after its legal standing was re-evaluated. UNRWA's account at Bank Leumi was frozen in February 2024 amid suspicions of potential funding for terrorist activities, a move the agency did not contest in court. Subsequently, the municipality issued official tax bills for 2024 and 2025, which UNRWA also ignored by failing to appeal within the deadlines, leading to the claims acquiring final legal force.
In August 2025, the bank received an official demand to seize over 11 million shekels and sought legal clarification from the court. Judge Sandberg ruled that the agency's informal correspondence with the Ministry of Foreign Affairs did not constitute official legal claims. Furthermore, the court determined that UNRWA's status as a subsidiary organ of the UN does not grant it automatic legal protection in Israel. The judge also noted that past suspicions against the agency do not prevent the payment of tax debt to Israeli municipal services, as the funds would not go to the organization itself. Bank Leumi has been instructed to immediately transfer the specified sum to the municipal accounts.
