Israeli Tax Authority Blocks Donations Tax Credits for Yeshivas with Draft Dodgers

The Israeli Tax Authority has begun enforcing a new directive from the Attorney General that prohibits dozens of yeshivas attended by IDF draft dodgers from receiving tax credits on donations. These donations, amounting to millions of shekels annually, are crucial for funding many yeshivas, including some from extremist streams. Under Section 46 of the tax laws, donors previously received tax deductions for contributions to these institutions.

The tax authority has sent letters to the first group of yeshivas, with dozens more expected to receive similar notices this week. The yeshivas are required to disclose whether any of their students have failed to regularize their military service status with the IDF. Even if only a few students are draft dodgers, the Attorney General's directive, led by Gali Baharav-Meara, mandates the complete revocation of tax credit benefits for the entire institution.

Yeshivas that have already received tax benefits must commit to not accepting new students who evade military service or fail to address their status legally with the army. They must provide full student rosters, including ID numbers, and military clearance documentation if applicable. The total tax-credit-eligible donations exceed 100 million shekels annually, making this move potentially devastating to the financial viability of many yeshivas nationwide.

The tax authority stated that this action follows a legal ruling and the Attorney General's instructions issued weeks ago. This enforcement comes amid ongoing legal and political battles, including a petition by the Israel Free Movement to the Supreme Court. Meanwhile, the state has already significantly cut yeshiva budgets for students obligated to serve in the military, prompting senior Haredi rabbis to seek fundraising abroad to cover the shortfall through the "World of Torah Fund," which supplements the reduced state funding.

The fund has indicated it will continue supporting yeshivas even if they remove draft-dodging students from their rolls, while exploring alternative funding methods to sustain these institutions.