Calls for seniors (freepik photo)
The tax authority will repay an insane amount of more than NIS 100 million to thousands of retirees. In a judgment of the Central District Court, a settlement agreement was approved in a class action against the Tax Authority. The lawsuit alleges that the tax authority levied taxes for eight years in violation of the tax-free allowances paid to retirees.
Following the court ruling, the retirees will receive the money illegally collected from them in the near future. One of the retirees filed the lawsuit through Adv. Accordingly, the same tax collection was defined as illegal.
The same pensioner initially filed a lawsuit, after it was discovered that provident funds and employers did not grant the tax exemption to retired pensioners. This was not done because the retiree did not submit a certificate from an assessee, a certificate that is not required by law at all. Lod District Court Judge Avi Gorman ruled that in case there is tax-exempt income – it should not be taxed at all.
More in-
In a scathing critique of the tax authority, the judge ruled that “in a country whose values are Jewish and democratic, it is appropriate to exercise extreme caution when dealing with tax-exempt income of a population segment that is not at the peak of its employment power.”
In addition, the court ordered the plaintiff to pay NIS 100,000 for the class action and pay Adv. Leibowitz a fee of NIS 1 million.
The Tax Authority’s response: “Along with the criticism, the court notes favorably the fact that the Tax Authority did not wait until the end of the procedure and issued new guidelines for benefit payers as a result, Judge Gorman assumes that since 2020 more retirees enjoy the exemption provided by the legislature. “To about 10,000 retirees in letters in which she announces the possibility of a tax refund while providing a detailed explanation of the required actions. In addition, those retirees will also be able to receive assistance from the training bureaus operated by the authority.”
Comments on the article(0):
Your response has been received and will be published subject to system policies.
Thanks.
For a new response
Your response was not sent due to a communication problem, please try again.
Return to comment