Does the property tax bend the Iron Dome?

Rafael will pay NIS 52 million

After a long dispute that reached the doorstep of the court, it was determined that Rafael would pay the amount to five authorities, with the main beneficiaries being Kiryat Yam and Acre.

The local authorities breathed a sigh of relief and congratulated them on what they considered a victory, while Rafael made it clear that this amount had been offered by them in the first place.

Liat Ron

23/05/2022

Monday, 23 May 2022, 12:45 Updated: 13:06

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Kiryat Yam and Acre managed to bend the "Iron Dome" of Rafael, the manufacturer of the weapons, and forced it to pay an annual property tax of NIS 52 million, which will be divided between them and other authorities in the area.

The victory was achieved after three years of legal battle waged by Raphael, the maker of "Iron Dome" and "Windbreaker" over the demand for original property tax payments.

Although this demand was NIS 1.2 billion, that is, the amount decided on Rafael's debt is significantly lower than it, but in practice, according to Kiryat Yam and other municipalities, it is a victory for the authorities who demanded it to pay, also retroactively.

It will be said immediately: Raphael's right to object to payment demands, certainly if they are excessive in her eyes, but their place to think she was completely exempt from property tax payments, while every hairdresser or grocery store is charged retroactively per square meter, but they do not have the ability to recruit top lawyers to They will fight for them and reduce the amount by hundreds of percent.

This is the place to add, that following the war in Ukraine and security tensions, the demand for security developments around the world is rising, with an emphasis on Central and Western European countries.

In 2021, which preceded the war, Rafael's net profit was NIS 431 million and its sales volume was almost NIS 10 billion, while the authorities in whose territory it sits are groaning under a deficit and limited budget.

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Raphael weapon system.

"The company had no intention of evading payment" (Photo: Raphael spokeswoman)

Who owns the David Institute?

Raphael's huge "David Institute" security complex was for years ex-territory and was not annexed to any local authority, a dream class that has exempted the company from heavy property tax payments since its establishment decades ago.

In June 2018, the Minister of the Interior ordered the annexation of the vast area to the Kiryat Yam municipality, which invested in the development of the area around it, in infrastructure, water and electricity.

Because of this, the municipality issued an assessment to Rafael in the amount of NIS 1.2 billion, for development levies and property taxes.

During the trial, Raphael argued through the law firm M.

Piron, the amount is unfounded: "The separate complex, almost one and a half times larger than the total area of ​​Kiryat Yam, where Rafael has been operating independently for over 70 years, and which until recently (late July 2018) was mostly devoid of any municipal affiliation ... Kiryat Yam has not established And has not invested anything in building the infrastructure that serves the complex. "

And therefore, it has been argued, the demand for payment was expended without any substantive justification, and in complete contravention of the law.

In Kiryat Yam Municipality's response to the court, it was argued, through attorney Shuki Chen, that for decades the David Institute was not annexed to any local authority. "

, who led the move, says that for years the plant, which covers an area of ​​6.5 thousand dunams, while the whole of Kiryat Yam covers an area of ​​4.5 thousand dunams, did not pay a single penny, although he enjoyed From its infrastructure.

David Ibn Tzur, Mayor of Kiryat Yam.

Led the move that ended in a compromise and achieved a handsome income for his city (Photo: screenshot, Facebook)

Lieberman's intervention

"We fought to add the territory to us in 2018," Ibn Tzur said in an interview with Radio North 104.5, "because not only is it sitting on our territory, it also limits Kiryat Yam in its ability to develop and build for security reasons.

" Raphael is valued by all the people of Israel, she Employs 7,000 workers, which is a very welcome thing, but at the same time we are in a state of law where businesses are required to pay property taxes by the meter.

During the trial they objected to the measurement of the area and argued that no one could be allowed to enter the factory area for reasons of confidentiality.

I said that if air conditioner technicians and cleaning workers can come in, then even a certified surveyor from the Ministry of Defense can make measurements on the factory premises.

"After a few years in the courts, I asked the Minister of Finance, Avigdor Lieberman and MK Mickey Zohar to try and reach a compromise with them.

According to estimated measurements we made through Google, we reached a payment of NIS 70 million. "

According to the compromise agreement signed for 15 years, the payment of the property tax by January 1, 2022, will be about NIS 25 million and from that date onwards 52 million per year to five authorities.

Kiryat Yam and Acre will each receive NIS 20 million and the rest will be divided between Kiryat Motzkin, Kiryat Bialik and the Mate Asher local council.

"For so many years we have been in big deficits," says Ibn Tzur.

"The municipality's annual budget is NIS 309 million, and now it will climb to NIS 329 million, a very significant amount for us. It's time we did not have to knock on government doors and beg for money. Instead of wooing the gates, we can invest in our residents."

, But Ibn Tzur rejected it outright and the company had no intention of evading payment.

"Rafael Kiryat Yam has signed an agreement initiated by the Ministries of Defense and Finance, under which Rafael will pay NIS 25 million in addition to the current property tax payments determined by verifying the area data, as presented throughout Rafael and verified by a surveyor determined by the court."

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Tags

• Raphael

• Kiryat Yam

• Acre

• Kiryat Motzkin

• property tax