Ottoman associations: benefit from public funds but are exempt from reporting to the state.
The Ministry of Justice goes to war (Photo: ShutterStock)
The State of Israel is tired of the Ottoman associations not counting it.
For years they have been doing what they want, without reporting and without paying anyone under the auspices of an old law, and continue to behave as if they do not owe anyone anything, even after the Minister of Justice required them to provide an initial report on their details.
A new directive from the Ministry of Justice, obtained by "Walla", stipulates that the local authorities require the approval of a correctional officer from Ottoman associations that want support, allowances, land allocations and exemption from property tax.
The hope is that the damage to the pockets of the associations will force them to align.
Along with business companies, associations and public benefit companies, there are bodies in Israel that are a reminder of the Turkish rule that ruled here until 1917, called "Ottoman associations".
They work for public purposes, use public funds and receive benefits from the State of Israel, similar to associations, except that unlike them, Ottoman associations have no supervision, let alone enforcement.
They are not obliged to present financial reports, and operate (according to the law!) with a lack of transparency.
It should be said right away, not all Ottoman associations operate in the dark, some of them do important activities for the benefit of a large public. In 2015, after a "freedom of information request", some of the names of the associations were revealed These include: the Aerospace Industry, Magen David Adom, the Teachers' Union, the Workers' Union, the Bar Association, Wizo, the Israel Defense Forces, the Association of Manufacturers, the Hotel Association, Klalit Health Services and Tel Aviv University.
It seems that this partial list is enough to understand that in a large part of the cases these are recognized and legitimate organizations, that there is no reason why they should not stand up to state audit.
The Tax Authority has stopped providing Ottoman associations without proper management approval, the document known as "Form 46", which grants the benefit of an income tax credit for a donation (photo: official website, Il Yitzhar, Globes)
Saar's move
In 2021,
the Minister of Justice, Gideon Sa'ar
, decided that it was time to make the Ottoman associations, which enjoyed absolute autonomy, transparent - and we will add: as expected from public organizations - some of them large and respected - that are, and signed the "Transparency Regulations for Ottoman Associations", which will require them to be supervised by the Register of Associations , to present financial reports, to deliver documents to him when required, like any other body. The
move provoked outrage among a large part of the bodies that sheltered in the shadow of their special status, and some of them did as much as they could to change the evil of the decree. In this framework, the workers' organizations received relief: it was determined that they They will report on their strike funds and will not be forced to submit balance sheets and financial reports to the Registrar of Associations, but will be required to allow members to review them.
In the first phase, the associations were supposed to report their details once, so that the state would have an orderly list of these hidden entities.
The date of entry of the full reports is set for June 2023, with the possibility of requesting a postponement to October 2023.
It is estimated that there are about 3,300 Ottoman associations today, and it is not really clear how many of them are still active.
Of these, only 86 of them bothered to report their existence, as part of the attempts at regulation.
The rest, apparently, are not really excited about the new duty imposed on them and they are not rushing to the registration offices, a matter that worries the authorities, since June is fast approaching.
More in Walla!
Tapioca pearls dessert in coconut cream with banana cubes, pear, avocado
In collaboration with the Galil company
Justice Minister Gideon Sa'ar.
He went into a campaign that whoever replaces him will have to decide whether to continue it (Photo: Marek Israel Salem)
Impact through the pocket and the "doomsday weapon"
In order to force them to obey the law, the state began to activate the authorities subordinate to it, to make it difficult for those who do not really seem prepared to comply with the regulation procedures.
In the first stage, the Tax Authority stopped providing Ottoman associations without proper management approval, the document known as "Form 46", which grants the benefit of an income tax credit for a donation.
The move was only marginally successful, and in the next step the Office of the Accountant General in the Treasury was activated and the Hashkal began to condition government support on the approval of proper management.
Now the struggle is taking a step: in a letter issued from the Ministry of Justice to the Ministry of the Interior, the local authorities are instructed not to transfer land, support or even give an exemption From property tax, for those who did not receive a valid administrator's permit from the registry of associations.
How much money is involved?
It is very difficult to assess, since even the local government does not really know or are willing to pass on details about the support and facilities that Ottoman associations receive.
With a careful craftsman, it is likely that the total damage could reach several tens of millions that would hurt them.
Along with the other sanctions, their economic existence will suffer a significant blow, since many of them depend on state funds.
The Ministry of Justice makes it clear that if even these measures do not stimulate the Ottoman associations to become more transparent and controlled, the ministry will be forced to use the doomsday weapon: the deletion of unruly associations.
Until then, apparently, some of them will continue to be conducted in the dark, sheltered in the shadow of his strange status that allowed him to escape the law, under the protection of the law.
Of money
news
Tags
Department of Justice
Gideon Saar
