Israel Tax Authority inspectors operating in the Tel Aviv district inspected 250 businesses and non-profits. Inspectors report that 17% of those monitored failed to record income as the law requires. One non-profit registered gifts totaling NIS 2 million but failed to maintain proper books to record the income. The head of the non-profit assured tax inspectors he would look into it.
Another non-profit, which runs a kollel and yeshiva, showed a monthly income of NIS 10,000 used for tuition costs that was not recorded. In addition, income generated from operating a mikve was not recorded. The director of this non-profit told inspects this is what the admor told us to do.
Inspectors documented income in the amount of NIS 135,000 in another non-profit that was not recorded as the law demands. They were told by the director this is how the accountant instructed me to run operations.
(YWN Israel Desk, Jerusalem)
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One Response
Does Israel tax non-profits on their income? As long the non-profit is not running a business on the side (which many non-profits do), and there is no question of persons who run the non-profit using it for their own personal profit (a common problem), what difference does it make? If the books and records are sufficient to show that it is indeed a non-profit, and isn’t being looted for personal gain – a demand for more expensive accounting suggests the tax authority has a politically motivated vendetta unrelated to tax collection (also common in many countries).