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Passing the buck? Israel zigzags on Amnesty tax exemptions

Entities keep shifting blame as to who is responsible for stripping Amnesty International, an organization that calls Israel an apartheid state and that a recent Finance Ministry report calls an enemy of the state like Iran and Hezbollah, of its tax exemption status.

by  Tamir Morag
Published on  08-11-2022 08:08
Last modified: 08-11-2022 08:14
Left-wing Israeli groups make up 77% of references in Amnesty reportAP/Maya Alleruzzo

Amnesty International is said to have received more than $2.5 million in federal funding in the past two decades | Photo: AP/Maya Alleruzzo

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Although the Foreign Ministry this week accused Amnesty International, which calls Israel an apartheid state, of being an enemy of the state just like Iran and Hezbollah, the organization continues to receive significant tax exemptions, with entities shifting blame as to who is responsible for resolving the matter.

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Earlier this week, the ministry published a report on Amnesty, calling it "an engine of blaming Israel for being an apartheid state." According to ministry spokesman Emmanuel Nahshon, it is one of the most hostile anti-Israel groups in the world.

And yet, as a non-profit organization, Amnesty continues to receive tax benefits under Section 46 of the Income Tax Ordinance. In February, after the organization published a report accusing Israel of apartheid policies in the Palestinian territories – dubbed the apartheid report – Finance Minister Avigdor Lieberman vowed to strip the group of this benefit, which has not yet been accomplished.

In an effort to find out who is responsible for resolving the matter, Israel Hayom reached out to the Finance Ministry and was referred to the Constitution, Law and Justice Committee chaired by MK Gilad Kariv (Labor) with the claim that for months the committee has been denouncing the promotion of the boycott law regulations, the approval of which is essential to making sure Amnesty loses its tax exemption status.

Israel Hayom reached out to Kariv, who said that Section 46 of the Income Tax Ordinance has no connection to the constitution committee or the boycott law, and was referred back to the Finance Ministry.

A source involved in the legislative process in the committee said that the boycott law cannot be applied to Amnesty, but only to organizations that explicitly call for the boycott of Israel, which the group does not as it focuses on promoting the apartheid narrative.

He also claimed that the Tax Authority, a subordinate to the Finance Ministry, rather than the constitution committee is the one that is supposed the contact the ministry with a request to revoke Section 46.

Israel Hayom reached out to the Tax Authority, and was told, "the issue is not our responsibility. You should contact the Finance Ministry."

After contacting the Finance Ministry yet again, Israel Hayom received a statement from the legal counsel, who shifted the responsibility back to the constitution committee and said that if another way is found to deny Amnesty the benefit, the Finance Ministry will promote the move.

Israel Hayom reached out to Kariv again but has not yet received a response.

The fact remains that while the entities keep shifting responsibility, Amnesty International continues to receive significant tax benefits, which enables it to raise more funds and continue its anti-Israel activities.

General Director of the Betsalmo advocacy group Shay Glick said, "One hand says that this is an organization that runs a campaign of hatred and lies against Israel, and the other hand gives it benefits worth hundreds of thousands of shekels every year. I call on Lieberman to order the denial of funding from Amnesty immediately."

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