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Laws of the State of Israel LAWS OF THE STATE OF ISRAEL Vol. 26 5734—1973/74 FROM 20th TISHRI, 5734 — 16.10.73 to 27th AV, 5734— 15.8.74 Authorised Translation from the Hebrew Prepared at the Ministry of Justice PUBLISHED BY THE GOVERNMENT PRINTER LAWS OF THE Vol. 28 STATE5734—197 OF 3 ISRAE/ 74 L to 27th AV, 5734 — 15.8.74 16.10.73׳ — FROM 20th TISHRI, 5734 Authorised Translation from the Hebrew Prepared at the Ministry of Justice PUBLISHED BY THE GOVERNMENT PRINTER \ 1 I CONTENTS Page Laws .... 3 Budget Laws 160 Index of Laws in the Order of the Dates of ׳ Their Adoption by the Knesset 178 Alphabetical Index of Laws 182 EXPLANATIONS I.R. (Iton Rishmi) — The Official Gazette during the tenure of the Provisional Council of State Reshumot — The Official Gazette since the incep­ tion of the Knesset Sections of Reshumot referred to in this translation : Yalkut Ha-Pirsumim — Government Notices Sefer Ha-Chukkim ' — Principal Legislation Chukkei Taktziv — Budgetary Legislation Kovetz Ha-Takkariot — Subsidiary Legislation Hatza'ot Chok — Bills Chukkei Taktziv — Budget Bills (Hatza'ot) Dinei Yisrael (from — The revised, up-to-date and binding No. 2 : Dinei Hebrew text of legislation enacted Medinat Yisrael) before the establishment of the State (Nusach Chadash) P.G. (Palestine Gazette) — The Official Gazette of the Mandatory Government Laws of Palestine — The 1934 revised edition of Palestine legislation (Drayton) LSI (Laws of the State of — The English translation of laws of Israel) which this volume forms part NV (Laws of the State of — An English edition of the revised text Israel [New Version]) of pre-State legislation (see above) LAWS (No. 1). WAR LOAN LAW, 5734 — 1973 * 1. In this Law— Definitions. (1) every term shall have the same meaning as it has in the , Income Tax Ordinance1) (hereinafter referred to as "the Ordi• nance"), unless otherwise provided in this Law ; (2) "chargeable income" means the chargeable income of a per• son in a particular tax year and includes income from dividend in respect of which exemption is granted under any law, but does not include income from interest in respect of which a reduction is granted under any law, and in the case of a kibbutz (communal settlement); means income as determined under section 57 of the Ordinance ; (3) "kibbutz" includes a moshav shitufi (economically collec- tivistic but socially individualistic settlement) or other cooperative society for agricultural settlement in respect of which a direction under section 61 of the Ordinance has been issued ; (4) "the determining date", in relation to thé loan for the tax year 1973, means the 10th Cheshvan 5740 (31st October, 1979), and in relation to the tax year 1974, means the 21st Cheshvan, 5741 (31st October, 1980). 2. (a) A person shall make to the State, in each of the tax years Imposition and 1973 and 1974, a war loan (hereinafter referred to as "the loan") at the rate indicated in this section. The loan shall be made, in respect of the tax year 1973, between the 5th Tishri 5734 (1st October, 1973) and the 8th Nisan, 5734 (31st March, 1974), and in respect of the tax year 1974, between the 9th Nisan, 5734 (1st April, 1974) and the 14th Tishri, 5735 (30th September, 1974), subject to the power to collect balances in excess of the amounts of the advance payments and to the power pursuant to regulations under section 9 (a) to adjust, deductions at source. * Passed by the Knesset on the 20th Tishri, 5734 (16th October, 1973) and published in Sefer Ha-Chukkim No. 717 of the 21st Tishri, 5734 (17th October, 1973), p. 3 ; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1086 of 5734, p. 2. 1). Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120 ; NV vol. I, p. 145. 3 (b) An individual shall make a loan at the rate of — (a) 3£ p.ct. of his chargeable income up to 40,000 pounds; (b) 4£ P-Ct• °f ms chargeable income in excess of 40,000 pounds but not in excess of 60,000 pounds; (c) 6 p.ct. of his chargeable income in excess of 60,000 pounds. (c) A body of persons shall make a loan at the rate of 4£ p.ct. of its chargeable income. Exemptions. 3. (a) The following are exempt from the loan: (1) an individual not liable, in the tax year, to tax in excess of 150 pounds; (2) a non-resident, in respect of his income from the sources specified in paragraphs (2), (4); (5) and (9) of section 2 of the Ordinance; (3) a daily employee within the meaning of regulations under the Defence Loan Law, 5733 — 19731). (b) Notwithstanding the provision of subsection (a), where any amounts have been collected on account of the loan from a person exempt from it, the following provisions shall apply: (1) where an amount not exceeding five pounds has been collected, it shall not be refunded; (2) where an amount exceeding five pounds has been col• lected, loan certificates shall be issued under section 6 : Provided that where an amount as aforesaid has been col• lected from a husband and wife together, the Assessing Officer may act in accordance with the provisions of paragraph (1) in respect of an amount of less than five pounds collected from one of them. Loan to bear 4. (a) The loans shall bear interest at the rate of 3 p.ct. per annum— (1) in respect of advance payments made in due time under section 8 and loan deducted at source under section 9 — from the 9th Nisan, 5734 (1st April, 1974) in the case of the loan for the tax year 1973 and from the 15th Tishri, 5735 (1st : October, 1974) in the case of the loan for the tax year 1974 ; (2) in respect of balances of the loan paid by the determining date — from the 1st Nisan, 5736 (1st April, 1976) in the case of the loan for the tax year 1973 and from the 13th i) Sefer Ha-Chukkim of 5733, p. 92; LSI vol. XXVII, p. 87. 4 Nisan, 5737 (1st April, 1977) in the case of the loan for the tax year 1974. (b) The interest shall be exempt from income tax. 5. (a) In this section — 1 Loan linked (1) "cost-of-living index" has the same meaning as in the t0 index' Defence Loan Law, 5717 — 1956 *) ; (2) "basic index" — (a) for the purposes of advance payments made in due time under section 8 and loan deducted at source under section 9 — (1) in the case of the loan for the tax year 1973 — means the cost-of-living index published for Decem• ber, 1973; (2) in the case of the loan for the tax ,year 1974, means the cost-of-living index published for June, 1974; (b) for the purposes of balances of the loan paid by any person by the determining date — (1) in the case of the loan for the tax year 1973, means the cost-of-living index published for Decem• ber, 1975; (2) in the case of the loan for the tax year 1974, means the cost-of-living index published for Decem• ber, 1976; (3) "new index" — (1) in the case of the loan for the tax year 1973, means the cost-of-living index published for December, 1988 ; (2) in the case of the loan for the tax year 1974, means the cost-of-living index published for December, 1989. (b) The principal of the loan shall be linked to the cost-of- living index. If at the time of repayment of the loan it appears that the new index exceeds the basic index, the loan shall be repaid increas• ed in proportion to the excess of the new index over the basic index. 6. (a) A person shall be given certificates registered in his name in Loan respect of the amounts of loan paid by him. certificates. (b) The certificates shall be given — i) Sefer Ha-Chukkim of 5717, p. 8 ; LSI vol. XI, p. 5. (1) in respect of the aggregate amount of advance payments made by a person under section 8 and the aggregate amount of loan deducted at source under section 9 — by the 13th Nisan, 5737 (1st April, 1977) in the case of the loan for the tax year 1973 and by the 23rd Adar Bet, 5738 (1st April, 1978) in the case of the loan for the tax year 1974 ; (2) in respect of balances of the loan paid by a person by the determining date — by the 15th Nisan, 5740 (1st April, 1980) in the case of the loan for the tax year 1973 and by the 26th Adar Bet, 5741 (1st April, 1981) in the case of the loan for the tax year 1974. (c) The certificates shall not be negotiable and shall not be capable of being charged or transferred except for transfer by opera-' tion of law. (d) The Minister of Finance shall, with the approval of the Finance Committee of the Knesset, prescribe by regulations the terms and conditions applicable to the loan certificates, including as regards their issue and redemption and balances of an amount smaller than the lowest denomination of the loan certificates. (e) The certificates shall only be for amounts of pounds divisible without remainder by five. (f) The certificates shall not be approved securities for the pur• poses of the Income Tax (Rules for the Approval and Management of Benefit Funds) Regulations, 5724 —19641). and shall not be Gov• ernment securities for the purposes of the Insurance Business (Control) (Modes of Investment of Funds and Capital of Insurer) Regulations, 5728 — 1967 2).
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