Israeli Tax Authority Demands Haredi Yeshivas Verify Students' Military Status to Retain Tax Benefits

Over the past weekend, the Israeli Tax Authority sent letters to dozens of Haredi yeshivas informing them that institutions with students who have not regularized their status with the military authorities will lose eligibility for tax benefits under Section 46 of the Income Tax Ordinance. Yeshivas wishing to continue receiving these benefits must declare that none of their students have been summoned for military service without legal status and must provide a complete list of all students, including names and ID numbers.

The letters emphasized that it is not permissible to indirectly fund religious institutions through tax credits for donations if they include students evading military service. Institutions are required to submit a signed declaration by a board member confirming no students are evading service and that no such students will be accepted in the future. Additionally, they must attach an Excel file with full student details.

This move follows a directive from the Attorney General's legal advisor, Gali Baharav-Miara, issued at the end of May, instructing the Tax Authority to prevent tax benefits for institutions harboring students who have not enlisted or regularized their military status. A dedicated team has also been established to examine ways to block indirect funding channels for these institutions.

Rabbi Yigal Levinstein acknowledged the tensions caused by these measures, stating, "They have succeeded in sowing discord among us." The development reflects ongoing efforts by Israeli authorities to enforce military service obligations among the Haredi community and to ensure compliance with tax regulations linked to military enlistment status.