Israeli Tax Authority Tightens Military Status Checks for Ultra-Orthodox Schools Under Section 46
Translated & summarized from Arutz Sheva by baba
The Israeli Tax Authority has broadened military status verification for ultra-Orthodox schools holding Section 46 tax approval, requiring all such institutions to confirm no draft evaders attend and to submit student lists with ID numbers. Noncompliance risks losing tax benefits tied to donations.
The story in 6 lines · by baba
- Israeli Tax Authority extends military status checks to all ultra-Orthodox schools with Section 46 approval.
- Schools must declare no draft evaders or students with unresolved IDF status attend.
- Institutions must submit student lists with ID numbers and proof of military status.
- Students must provide documents like combatant certificates, exemptions, or discharge papers.
- Noncompliance may lead to revocation of tax benefits under Section 46.
- Existing schools are now required to verify and report military status, not just new ones.
The Israeli Tax Authority has expanded its requirements for ultra-Orthodox educational institutions holding approval under Section 46, which grants tax benefits for donations. Previously applied only to new institutions seeking this approval, the new rules now also apply to existing yeshivas and schools. These institutions must declare that none of their students are draft evaders or have unresolved military status with the Israel Defense Forces (IDF). They are also required to commit to not accepting students whose military status is not regularized in the future.
As part of the process, schools must submit lists of their students along with their ID numbers. Students will need to provide documentation proving their military status, such as a combatant certificate, exemption, discharge papers, or an official document indicating their enlistment date. Failure to comply with these requirements could result in the revocation of the Section 46 approval, which is crucial for institutions to offer donors income tax deductions and to facilitate fundraising.
This move marks the first time that existing institutions are mandated to verify and report their students' military status as a condition for maintaining their tax-exempt status. The expanded scrutiny aims to ensure that ultra-Orthodox schools do not harbor draft evaders, reflecting ongoing tensions over military conscription in the Haredi community.
