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Will business owners be forced to return some of the corona grants?
This is a demand for the return of advances given to businesses at the expense of corona grants, which were not finally approved by the tax authority.
Adv. Yosef Tamir, who specializes in litigation: "The Tax Authority makes its own interpretation of the law.
There is a deliberate U-turn on the legislature to help the affected businesses. "
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Corona
Grants
business owners
Internal Revenue Service
Roast Greenberg
Monday, 26 April 2021, 09:35 Updated: 09:53
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The tax authority has distributed NIS 32 billion in corona grants - and now wants some of the money back. This is a demand by the Authority for the return of advances given to businesses in various fields at the expense of their claim for the corona grants - claims that were not finally approved by the state.
The tax authority told Walla! Money, because the refund of the advances stems from the completion of its examination of the businesses' claims for the corona grants, in the framework of which it found that some of them were overpaid or did not meet the eligibility conditions set by law.
One of the examples given by the Authority is a business that has experienced a decrease in its activity as a result of the closure of a branch or any of its activities carried out before the corona, and is therefore not entitled to a grant given as a result of a decrease in activity as a result of the corona.
The business owners, however, do not intend to give up, and have started fighting to keep the money in their pockets: according to data from the Tax Authority, about 14.7 thousand objections have been submitted to it so far against its advance repayment decisions, and that about 10.1 thousand of them are already being processed.
These are mainly businesses with a turnover of between NIS 1.5 million and NIS 400 million, which received participation grants with fixed expenses of about NIS 7.7 billion.
Among them are 4,058 claims of happy halls, which together received NIS 308.2 million;
About 19.3 thousand lawsuits by businesses in the field of tourism that together received about NIS 1 billion;
And about 28.9 thousand restaurateurs who received about NIS 1 billion in grants and advances.
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Adv. Yosef Tamir: "The Tax Authority's decision to get its hands on some of the money is not surprising" (Photo: Hadar Dolan)
The business owners relied on the amounts
Advocate Yosef Tamir, who specializes in litigation and representation before the tax authorities, told Walla! Money: "The Tax Authority's decision to get its hands back on some of the funds is not surprising, but is far from justified.
This is its own "creative" interpretation of the law, and not its application as worded and therefore there is no reason for businesses to give up what they are entitled to by law.
For example, one of the businesses I represent, a freelancer, received advances of about NIS 150,000 due to damage to the business turnover in the relevant period.
Two months after the transfer of the funds, the Tax Authority informed the client that he was required to return the funds immediately, since in her opinion the damage to income is not and during the corona crisis.
I do not know how such a sweeping conclusion was reached and the demand for a refund creates a great difficulty for the customer who relied on the sums.
A serious home inspection on the subject must be carried out. "
CPA Edward Kaufman: "The decrease in activity was solely due to the corona" (Photo: Self)
"What reason is there to ask for money back?"
CPA Edward Kaufman
, a graduate of the Tax Authority, added: “When we filed for the clients the grant claims, we did the required checks.
I am not arguing that it is not possible that mistakes were made with the Authority in good faith, but certainly not in the amount of refund requests that the Authority requires.
After all, there is no denying, for example, that the owners of the banquet halls, tourist agencies, and chef restaurants did not work.
What reason should be asked of them for advances back?
"The decrease in their activity was solely due to the corona, and it is not at all clear when they will return to normal and robust activity."
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