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The positions of the petitioners and the Ombudsman - and that of Smotrich
The petitioner, "Free Israel," claims that after the High Court of Justice ruled that the state is not permitted to budget for yeshiva schools for students who are required to be drafted, continued support for those institutions by way of tax benefits for their donors should not be allowed. They claim that an institution that assists in the continued evasion of service cannot be considered a "public institution" entitled to benefits, and that its continued recognition is contrary to the rule of law and public order. According to the association, for just four yeshiva schools, the cost of the tax benefit in 2023 amounted to more than 24 million shekels.
The position of the Minister of Finance, as reflected in the conduct preceding the petition, was to leave the existing approvals in place and not to comprehensively deny the benefit to the yeshiva schools due to the military status of their students. However, after the Attorney General's decision, professional officials at the Ministry of Finance and the Tax Authority began preparing to change the policy and implement it.
Bharav-Miara effectively adopted the petitioners' principled argument. According to her, the state is not allowed to "indirectly finance" institutions where conscripts who do not regularize their status study, thereby encouraging evasion through tax credits for donors. She instructed the Tax Authority to formulate a mechanism that would identify the relevant yeshivahs, among other things by checking student lists against data from military authorities. Follow
לאשה קפריסין 26 טרנדים אופנה
ing the directive, the Tax Authority began contacting yeshivahs and demanding that they declare whether conscripts who did not show up are studying there. Institutions where such students are found are expected to lose their eligibility for the benefit.
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The judges have concluded the hearing and will issue a decision regarding the continuation of the hearing on the petition.
After hearing the parties' positions regarding the continuation of the petition hearing, the judges concluded the session in about an hour. They are expected to issue a decision at a later date regarding the actual continuation of the petition hearings, while addressing the question of whether there is any point in continuing it.
The judges wondered whether it was necessary to continue the petition - they will decide on that later.
The High Court of Justice today (Monday) heard a petition against the Ministry of Finance and Finance Minister Bezalel Smotrich against the recognition for tax purposes of donations to yeshivas where those who do not enlist in the army study - that is, Haredi yeshivas. This is part of the denial of state benefits to those who encourage evasion, following the High Court's ruling. Attorney General Gali Baharav-Miara expressed support for the petitioners, while the Minister of Finance opposes the move. As a result, the judges wondered whether there was any point in continuing to discuss the petition and are expected to publish a decision on the matter later.
Following the petition, the attorney general informed the High Court of Justice that tax benefits should not continue to be granted for donations to yeshivahs where conscripts who have not settled their status with the IDF study. To prevent this, MK Moshe Gafni, chairman of Degel Hatorah, began today a move in the Finance Committee aimed at preventing tax exemption for hundreds of associations.
The petition, submitted by "Free Israel" through attorneys Dr. Hagai Kalai and Gal Barir, deals with the approval granted to institutions under Section 46 of the Income Tax Ordinance. The approval allows donors to receive a tax credit on part of the donation amount – and in fact constitutes, according to the petitioners, indirect public funding of the institutions.