The Israel Tax Authority has announced plans to re-examine Section 46 status for the Kohelet Policy Forum, which would provide tax deductions for donors, pending Knesset Finance Committee approval. The organization was recently removed from the list of tax-benefit eligible organizations following appeals from left-wing lawmakers citing concerns over politicization, but the matter is now scheduled for renewed discussion.
Israel Hayom has learned that the Israel Tax Authority has decided to restore its recommendation for Section 46 status under Israeli law, subject to Finance Committee approval. A new discussion is expected in the coming weeks after the authority finalizes its list of additional organizations approved for tax-benefit status.
The development follows a significant shift in the organization's funding landscape. In summer 2023, the forum's principal donor discontinued support to all Israeli institutions, including the Kohelet Policy Forum. By April 2024, the organization faced budget cuts due to both the war and the loss of primary funding, leading to a successful crowdfunding initiative that raised 4 million shekels from over 10,000 individual contributors.
The organization's pursuit of Section 46 status, which offers donors a 35% tax refund, came after completing extensive bureaucratic requirements, culminating in the Israel Tax Authority's initial approval for Finance Committee consideration.
The parliamentary debate has been marked by sharp political divisions. Opposition Finance Committee coordinator MK Vladimir Beliak has spearheaded resistance to the forum's approval, while Likud MK Amit Halevi defended the organization, arguing against what he viewed as discriminatory treatment compared to other approved organizations with clear political affiliations.
The most recent committee session saw Israel Tax Authority officials present a letter from their director requesting additional review time, resulting in a decision to approve other organizations while deferring the Kohelet Forum decision pending further investigation.
When questioned about historical precedents, the Israel Tax Authority noted that while they don't maintain specific statistics on applications requiring additional review, such cases have occurred "several times in the past for various reasons."
Addressing comparisons with other organizations, the authority acknowledged that while some concerns raised about Kohelet might apply to other approved organizations, these particular issues don't typically prevent Section 46 approval. However, they noted that other potentially disqualifying factors require further examination.
The Kohelet Policy Forum expressed optimism, stating that following the dismissal of "unfounded and hypocritical claims," they expect the Israel Tax Authority's renewed recommendation to receive parliamentary approval.
MK Vladimir Beliak issued a detailed response, highlighting his presentation of "substantial evidence of partisan political activity" during recent committee sessions. He noted the unprecedented nature of the initial removal decision and suggested that subsequent pressure from Likud members may have influenced the authority's reconsideration. Beliak emphasized his commitment to upholding regulations against approving organizations engaged in partisan political activity, stating, "I suggest Tax Authority representatives come prepared. They will need to work hard to explain their decision. I will be there – to fight and keep you updated."
