The attorney general's office submitted the state's position to the High Court on Wednesday evening, backing a petition by the Israel Hofshit movement to deny or revoke Section 46 tax-exemption certificates for religious institutions where draft-eligible students have not regularized their status with military authorities. An analysis by the movement, covering all 811 institutions, shows most donations to these yeshivas come from Israel, not abroad; revoking the benefit would save the state approximately 430 million shekels annually.
The state's submission to the High Court of Justice on Wednesday evening marks a formal legal escalation in the campaign to link tax benefits for religious institutions with compliance with military conscription laws. The attorney general's office explicitly endorsed the petition by the Israel Hofshit movement, arguing that no tax-exemption certificates under Section 46 of the Income Tax Ordinance should be granted or renewed to yeshivas and other religious institutions where draft-eligible students have not arranged their military status.
The supporting analysis by Israel Hofshit, which examined all 811 religious institutions covered, found that a majority of donations to these yeshivas originate from domestic Israeli sources rather than from abroad. This undercuts the traditional rationale that Section 46 benefits serve to channel foreign philanthropy to Torah study. The movement calculated that revoking the tax break would generate approximately 430 million shekels in annual state revenue.
As The Zioneer reported earlier Thursday, the Tax Authority recently signaled it would demand that yeshivas declare whether they house draft-dodging students or lose their tax benefits. Wednesday's court filing adds the weight of the executive branch's official legal position to that regulatory push. The case now awaits the High Court's ruling, with implications for hundreds of institutions and the broader Haredi conscription crisis.
2 developments
- DevelopingStudy: most donations to Israeli yeshivas come from Israel, not abroad; tax-benefit repeal would save state 430 million shekels a year
- DevelopingTax Authority to demand yeshivas declare draft-dodging students or lose tax breaks
- DevelopingTreasury advances cancellation of National Insurance discount for yeshiva students
- DevelopingHigh Court orders state to explain exemption of Haredi national service track from conscription
Source and signal
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