{"id":932074,"date":"2026-07-13T13:48:17","date_gmt":"2026-07-13T13:48:17","guid":{"rendered":"https:\/\/www.europesays.com\/us\/932074\/"},"modified":"2026-07-13T13:48:17","modified_gmt":"2026-07-13T13:48:17","slug":"high-court-weighs-future-of-yeshiva-tax-benefits-petition","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/932074\/","title":{"rendered":"High Court weighs future of yeshiva tax-benefits petition"},"content":{"rendered":"<p class=\"article-paragraph-section article-body-paragraph\">The High Court of Justice questioned on Monday whether there was any need to continue hearing a petition challenging tax benefits for donations to yeshivot attended by draft-eligible students who have not regularized their military status, after the state accepted the petitioners\u2019 central legal argument and began implementing it.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">Following a hearing lasting approximately one hour, Justices Dafna Barak-Erez, Gila Canfy-Steinitz and Ruth Ronnen said they would issue a decision at a later date on whether the proceedings should continue.<\/p>\n<p>The petition, filed by Israel Hofsheet against the <a href=\"https:\/\/www.jpost.com\/business-and-innovation\/banking-and-finance\/article-902280\" target=\"_blank\" rel=\"nofollow noopener\">Finance Ministry<\/a> and Finance Minister Bezalel Smotrich, challenges tax benefits granted under Section 46 of the Income Tax Ordinance, which allows donors to recognized public institutions to claim tax credits on their contributions.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">Israel Hofsheet argues that the benefit amounts to indirect public funding and therefore cannot continue, after the High Court ruled in June 2024 that the state lacked authority to fund yeshivas in respect of students legally required to enlist.<\/p>\n<p><strong>Court questions need to continue petition<\/strong><\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">At Monday\u2019s hearing, Barak-Erez pointed to Attorney-General Gali Baharav-Miara\u2019s adoption of the petitioners\u2019 position.<\/p>\n<p><img alt=\"ATTORNEY-GENERAL Gali Baharav-Miara.\" loading=\"lazy\" width=\"822\" height=\"829\" decoding=\"async\" data-nimg=\"1\" style=\"color:transparent\" src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/07\/672106.jpeg\"\/>ATTORNEY-GENERAL Gali Baharav-Miara. (credit: MARC ISRAEL SELLEM\/THE JERUSALEM POST)<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">\u201cWhy, at this time, has the petition not exhausted itself?\u201d she asked. \u201cThe question is not whether we have reached an ideal state, but whether at this time there remains anything to discuss.\u201d<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">Attorney Hagai Kalai, representing Israel Hofsheet alongside attorney Gal Barir, replied that the petition had effectively been accepted, since the state now agreed that the institutions could not receive such indirect support.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">A representative of the attorney-general told the court that, in light of its rulings, the state was not authorized to finance draft-eligible students who had not regularized their status, and was required to take all available steps to prevent such funding.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">\u201cYou are essentially accepting the principled position presented by the petitioners?\u201d Barak-Erez asked, noting that the answer also affected the procedural question of whether the case should continue.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">The state representative said that although the tax benefit was formally granted to donors, it nevertheless constituted indirect support by the state.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">\u201cAccording to our position, there is no authority to provide such support,\u201d she said. \u201cThe court ruled that the state is not authorized to continue supporting draft-eligible students who have not regularized their status.\u201d<\/p>\n<p><strong>State begins implementing new policy<\/strong><\/p>\n<p>Baharav-Miara has instructed the <a href=\"https:\/\/www.jpost.com\/israel-news\/crime-in-israel\/article-901490\" target=\"_blank\" rel=\"nofollow noopener\">Israel Tax Authority<\/a> to implement a mechanism for identifying the relevant institutions. Yeshivot seeking to obtain, renew or retain Section 46 recognition are being required to provide declarations and identifying information regarding their students.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">The information will be checked against military records, after which the Tax Authority will determine each institution\u2019s continued eligibility based on whether draft-eligible students enrolled there have regularized their status.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">Smotrich opposed broadly revoking existing approvals because of the military status of students enrolled at the institutions, according to the state\u2019s position submitted ahead of the hearing.<\/p>\n<p><a href=\"https:\/\/www.jpost.com\/israel-news\/article-897526\" target=\"_blank\" rel=\"nofollow noopener\">Israel Hofsheet<\/a> argued that maintaining Section 46 recognition for those institutions would replace prohibited direct funding with an indirect subsidy delivered through the tax system.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">The movement further argued that an institution facilitating continued evasion of legally required military service could not be considered a public institution entitled to the benefit, and that maintaining its recognition would contradict the rule of law and public policy.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">According to Israel Hofsheet, tax credits arising from donations to four yeshivot alone cost the state more than NIS 24 million in 2023.<\/p>\n<p><strong>Israel Hofsheet welcomes state&#8217;s position<\/strong><\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">Following the hearing, the movement said the state\u2019s adoption of its legal position and the beginning of its implementation represented a significant public and legal achievement.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">\u201cThe hearing today illustrated what truly matters: The legal position we presented in the petition was accepted by the state,\u201d Israel Hofsheet said.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">It said the remaining question was whether continued judicial proceedings were needed to ensure that the policy was implemented, or whether the court could rely on the state\u2019s assertion that it was already acting in accordance with the principles set out in the petition.<\/p>\n<p class=\"article-paragraph-section article-body-paragraph\">\u201cWe were pleased to see that our position was accepted and that there is no longer any question regarding what should have been clear from the outset,\u201d Israel Hofsheet CEO Uri Keidar said.<\/p>\n<p>\u201cSection by section, <a href=\"https:\/\/www.jpost.com\/israel-news\/article-901628\" target=\"_blank\" rel=\"nofollow noopener\">shekel<\/a> by shekel, we will block every attempt to continue subsidizing draft evasion with state funds. The time for equality has come.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The High Court of Justice questioned on Monday whether there was any need to continue hearing a petition&hellip;\n","protected":false},"author":3,"featured_media":932075,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[2],"tags":[20569,78130,73831,99,277042,50],"class_list":["post-932074","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","tag-finance-ministry","tag-hareidi-draft","tag-high-court-of-justice","tag-israel","tag-israel-tax-authority","tag-news"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116912987066456279","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/932074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=932074"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/932074\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/932075"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=932074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=932074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=932074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}