Israel to Revoke Tax Benefits for Haredi Yeshivas Over Evasion Reporting
Translated & summarized from Kan News by baba
Israel will revoke tens of millions of shekels in tax benefits from about 650 Haredi yeshivas for failing to report students evading military service. The Tax Authority's demand followed a directive from Attorney General Gali Baharav-Miara, who stated donors to such yeshivas would lose tax benefits. Haredi parties estimate the annual financial damage could reach hundreds of millions of shekels.
The story in 5 lines · by baba
- Israel will revoke tax benefits worth tens of millions of shekels from 650 Haredi yeshivas.
- The yeshivas refused to report students evading military service as required by the Tax Authority.
- Attorney General Gali Baharav-Miara directed that donors to yeshivas with draft evaders lose tax benefits.
- Haredi parties estimate the annual financial damage could be hundreds of millions of shekels.
- Around 70% of the Haredi institutions did not comply with the reporting requirement.
The Israeli government is set to revoke tax benefits valued at tens of millions of shekels from approximately 650 Haredi yeshivas. This action follows the institutions' refusal to comply with a directive from the Tax Authority requiring them to report on students evading military service. Around 70% of these institutions failed to submit the required information.
The Tax Authority's demand, issued in June, stemmed from a directive by Attorney General Gali Baharav-Miara. Her position is that individuals donating to yeshivas with students who do not enlist will not be eligible for tax benefits. This directive has sparked strong reactions from Haredi political parties, with estimates suggesting the financial damage could range from tens to hundreds of millions of shekels annually.
Prior to this, the Attorney General had instructed the Tax Authority and relevant professional bodies to prepare a plan to halt subsidies for donations to Haredi yeshivas. The issue highlights the challenges facing the next government, particularly concerning the Haredi sector, the high-tech industry, and potential sanctions.