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The tax authority is collapsing under half a million lawsuits: "What Hezbollah failed to do to us, the state will do" - Voila! Of money

2024-02-26T11:13:44.490Z

Highlights: The tax authority is collapsing under half a million lawsuits: "What Hezbollah failed to do to us, the state will do" - Voila! Of money. The war resulted in a huge amount of 445,000 claims due to a decrease in business activity. Many business owners across the country, who submitted applications to the Tax Authority for compensation for the damages of the Iron Swords War, are discouraged. Some of them have not received anything from the state to this day, including families of those evacuated from their homes.


The war resulted in a huge amount of 445,000 claims due to a decrease in business activity and the tax authority is unable to cope with the load: only 100 employees have handled the applications so far


The most authentic there is - the farmers of the south talk about the aid they received./Azrieli Group.

Many business owners across the country, who submitted applications to the Tax Authority for compensation for the damages of the Iron Swords War, are discouraged.

After going through the pains of the complicated bureaucracy and submitting applications in the outdated system, they had to wait months until they received an advance or reduced compensation, if at all.

Some of them have not received anything from the state to this day, including families of those evacuated from their homes.



The reason for the delays and postponements is mind-boggling: the Tax Authority does not have enough personnel to deal with almost half a million requests for compensation for indirect damages, damage to the self-employed's income due to the war.

At the beginning of the campaign, less than 50 employees handled this huge amount.



Recently their number has doubled and today stands at only about a hundred employees, but they too are not able to handle the load.

This acute manpower problem seriously hurts the business owners and causes cases of financial collapse and entering into heavy debts.

Closed store in Kiryat Shmona.

The acute staffing problem at the Tax Authority seriously hurts the business owners/Reuven Castro

The Authority admits that approximately 11% of the claims are in the review process after advance payment and the rest are claims that are in various stages of treatment and examination.

Assuming that these figures are correct, and the number of those who did not receive a response is not greater, there are still tens of thousands of families whose applications have not yet been processed and who have not received a shekel from the state, including those who have been evicted from their homes.



Here is the place to emphasize that the claim is not addressed to the dedicated employees of the Tax Authority, who are doing their best to deal with this impossible amount of cases, which is completely different from the work required of them during the Corona period, and which they dealt with in an admirable way.

The claim is addressed to those in the Treasury who were not able to understand that in order to provide a service response to the victims, the number of Authority employees who take care of them needs to be dramatically increased.



In Corona, the attention required for each request was minimal, as there were formulas for calculating the compensation that required pressing a button on the keyboard.

A war of iron swords, which presented the tax authority with a wave of requests for compensation that are treated as tort claims, with all the paperwork, tests and correspondence involved, which require paying attention to details and devoting a lot of time to each and every one of them.

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Shops are closed in the north.

"No one can live without income for almost two months"/Ruben Castro

A., the owner of a company from the north, who was evacuated from his home at the beginning of the war, is one of the victims, who became, against his will, a refugee, unemployed and hungry for bread.

With the start of the war, his thriving business was completely shut down.

Projects under construction and those that were before completion, were stopped.

Three and a half months without income, with current family expenses and without receiving any compensation from the state.



"Three and a half months apart from being displaced from our homes, we are not sleeping because of debts that have accumulated, we have already taken everything the bank allowed us. We have nothing to earn a living," Lavala said recently.

"I founded a business with my own hands, which met its obligations and provided for quite a few people and businesses, and with great sadness and tears in my eyes I see it taking a course under the auspices of the Tax Authority. I do not ask for handouts. I ask for what I am entitled to, out of necessity being a business that pays taxes to the state."



At the end of November, he applied for the red route and when it became clear to him that he would only receive the money in this route at the end of the war, he applied to the Tax Authority for advances.

He was told that the request would be processed within seven business days.

When these passed, he was told that the money would be deposited in 14 business days.

And when he picked up the phone to check why nothing had been deposited in the bank, the tax authority explained to him that the request could take up to 30 business days, almost a month and a half from the date the request was submitted.



"No one can live without an income for almost two months. I chose to speak anonymously, because I think about the day after. I don't want to cause my business more damage than it already has. Who would want to work with me if they knew I was on the verge of collapse? I am applying Please help me, as someone who has made a decent living up to now and wants to continue to make a living and make a living with dignity. I hope the tax authority wakes up and realizes that they have the power to save businesses and people. I don't want the state to do what Hezbollah failed to do to us."



Only after Walla applied to the Tax Authority, A's application was processed and he received the advances, for him too late, because the loans he took accrued interest that he would have to pay back.

A chicken coop that was damaged in the seat from Margaliot.

Lulans testify that they have not received a shekel so far/photo processing, Maariv

Farmers and farmers on the northern border with whom we spoke, tell Walla that they too have not received anything from the state so far, because property tax officials will only be able to assess the damages at the end of the war and they do not intend to ask for the advances, because of the refund demands they received after the corona.

"I'd rather take the risk and get to my chicken coop," said one of them, "than ask for money that they would later ask me to pay back."



In the Facebook group "Ask a CPA - Iron Swords War compensation", more and more complaints are piling up about procrastination, unnecessary postponements and vague answers. In Ashkelon, I submitted the application for the grant, and I didn't even receive it in October.

How can we check what's going on with this?" "Nothing has come in yet from November to December, neither are advances and I received approval." If it was the first month of the war, it would be fine. But after four and a half months had passed, the Ministry of Finance was expected to approve more standards immediately, Or mobile work even then.

Tax Authority building.

"So far, an amount of over NIS 10 billion has been paid to businesses for indirect damage"/Photo processing, Eyal Yitzhar, Globes

The Tax Authority says that this is indeed an unprecedented event in its scope, of compensating businesses for indirect damage caused as a result of the fighting events.

"So far, about 445,000 claims for compensation have been submitted to the Tax Authority. About 85% of the claims have been processed and about 11% of the claims are in the review process after advance payments have been made to the injured party. The rest are claims that are in various stages of processing and examination, most of them new ones that were submitted during the last few days A total of over NIS 10 billion has been paid to businesses for indirect damage to date



.

To this end, employees were recruited from most of the Authority's units: the income tax and VAT offices, the execution units, bookkeeping, the headquarters, etc. In total, the compensation fund currently has 170 employees who handle claims for direct damage and another 100 who handle claims for indirect damage. To these employees (who handle damage Akif) will join next week another 30 employees from two income tax offices and another 40 new employees from outside the authority who are in recruitment and training procedures."

  • More on the same topic:

  • War of Iron Swords

  • Gaza war

  • Compensation

  • business

  • Internal Revenue Service

  • Claims

Source: walla

All business articles on 2024-02-26

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