The director of the Small and Medium Business Agency appealed to freeze collecting property tax

The director of the Small and Medium Business Agency at the Ministry of Economy, Ran Koiti, this morning appealed to the heads of the municipal authorities to freeze the procedures for collecting property tax payments for businesses affected by the Corona crisis.
The Minister of Economy and Industry, Amir Peretz: "Freezing the collection proceedings until the exemption for businesses is the required thing. It is inconceivable that on the one hand, businesses will be entitled to the exemption, and on the other hand expenses will be incurred until the official exemption is granted. After that, act in accordance with the law "
Ran Koiti: "The state has created an eligibility route for a tax deduction for businesses. The authorities must be part of the process and adapt the collection process to the credit process."
As part of the relief for businesses in view of the corona crisis, and with the signature of the Minister of the Interior, a tax exemption route was established for the affected businesses, in accordance with various criteria.
As part of the procedure, entitlement to a property tax rebate is approved by the Agency for Small and Medium-Sized Businesses one month in advance, on the basis of the previous two months for which the "eligibility for a fixed expense grant" granted by the Tax Authority has been declared and examined.
This mechanism was created to reduce the gap between the entitlement to a tax deduction, and the period of billing in the payment of the property tax by the authorities. In practice, the authorities issue property tax charges at the beginning of each period, and the discount depends on the approval of the Tax Authority, which is given only after the beginning of the period and sometimes even several weeks after the beginning of the period.
As a result, a situation has arisen where, even though the businesses meet the criteria, they are still unable to apply for a tax rebate, as they have not yet received the approval of the Tax Authority. That is, these businesses have to wait until they receive approval for the discount, and at the same time the authorities issue charges and sometimes even begin collection processes. Businesses are actually forced to finance and bridge the payment of property taxes even if they are eventually credited by the authorities, precisely at a time when their income has been significantly hurt.
In his application, the Director of the Business Agency in the Ministry of Economy and Industry asks the heads of the authorities to freeze the property tax collection procedures for businesses that have been significantly affected, and who are expected to be entitled to a tax rebate for the relevant period, or full exemption for November December 2020.
Koiti: "Businesses that have a high chance of receiving the discount in the future should be allowed to suspend collection proceedings and allow businesses to exercise their right to receive the discount. This step will make it easier for businesses and allow them to enjoy the benefit to which they are entitled."