Jerusalem Court Orders UNRWA Funds Transferred to City for Tax Debt
Translated & summarized from Calcalist by baba
A Jerusalem court ordered Bank Leumi to transfer approximately 11 million shekels from a UNRWA account to the Jerusalem Municipality to cover property tax debts for 2024-2025. The ruling came after the municipality placed a lien on the UN agency's account. The court rejected UNRWA's claim of immunity, citing recent legislation aimed at ending its operations in Israel. The funds will be used to settle arrears on two UNRWA properties in the city.
The story in 5 lines · by baba
- Jerusalem court orders 11 million shekels from UNRWA account transferred to city.
- Funds are to cover property tax debts for UNRWA's Jerusalem properties in 2024-2025.
- The court rejected UNRWA's claim of immunity from taxation.
- Bank Leumi had frozen UNRWA's account due to terrorism funding concerns.
- Recent Israeli laws aim to cease UNRWA's operations in the country.
A Jerusalem District Court has ruled that approximately 11 million shekels from a UNRWA bank account must be transferred to the Jerusalem Municipality to cover property tax debts for the years 2024-2025. The decision was made by Judge Haya Zeidberg in response to a request for instructions filed by Bank Leumi, which had received an order to seize the funds from the UN agency's account.
The property tax debt pertains to two UNRWA properties in Jerusalem: the Police Academy complex in Ma'alot Dafna and a girls' school in Tzur Baher. UNRWA had previously enjoyed full exemption from property taxes and diplomatic immunity. However, following the October 7, 2023 attacks and the subsequent war, evidence emerged of extensive infiltration of Hamas and other terror groups into UNRWA ranks, according to the state's position presented to the Supreme Court.
In February 2024, Bank Leumi froze UNRWA's account due to concerns that funds might be used for terrorism against Israel. UNRWA did not take steps to unfreeze the account. In October 2024, two laws were enacted aimed at ceasing UNRWA's operations in Israel. Consequently, the Jerusalem Municipality began seeking payment of UNRWA's property tax arrears for its city properties starting in the 2024 tax year.
In August 2025, the municipality obtained a tax collection order against the UNRWA account for up to 11 million shekels. Bank Leumi then petitioned the court for guidance on whether to comply. The court's ruling means UNRWA does not have immunity from property tax collection for the 2024-2025 tax years. The court ordered Bank Leumi to register the seizure and transfer the funds from UNRWA's account to the municipality.
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