Laws of the State of Israel

Home , Haim Corfu, Moshe Nissim, Yigal Cohen, Yoram Aridor

LAWS OF THE 0 ° STATE OF ISRAEL

° ° o/ Vol. 38

; • 5744-1983/84 • ׳ ° b From 7th Tishri, 5744 — 14.9.83= to 16th Elul, 5744 — 13.9.84 o

Authorised Translation from the Hebrew Prepared at the Ministry of Justloe

ISSN 0334* 3383

Distributors: Government Publications Service Dayid Eleazar, Street, Hakirya, Tel Aviv — F,0$. 7103 ,2527־ äälKUSHSj'

LAWS OF THE STATE OF ISRAEL

Vol. 38

5744-1983/84

From 7th Tishri, 5744 - 14.9.83 to 16th Elul, 5744 - 13.9.

Authorised Translation from the Hebrew Prepared at the Ministry of Justice

ISSN 0334 - 3383

Distributors: Government Publications Service 25-27, David Eleazar Street, Hakirya, Tel Aviv - P.O.B. 7103 CONTENTS

Page

Laws 3

Budget Laws 304

Index of Laws in the Order of the Dates of Their Adoption 332

Alphabetical Index of Laws 338

EXPLANATIONS:

I.R. (Iton Rishmi) - — The Official Gazette during the tenure of the Provisional Council of State

Reshumot - — The Official Gazette since the inception of the Knesset

Sections of Reshumot referred to in this translation:

Yalkut Ha-Pirsumim — Government Notices

Sefer Ha-Chukldm — Principal Legislation

Chukkei Taktziv — Budgetary Legislation

Kovetz Ha-Takkanot — Subsidiary Legislation

Hatza'ot Chok — Bills

Chukkei Taktziv (Hatza'ot) — Budget Bills

Dinei Yisrael (from No. 2: — The revised, up-to-date and binding Hebrew text of legis• Dinei Medinat Yisrael) lation enacted 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 — The English translation of laws of which this volume of Israel) forms part

NV (Laws of the State — An English edition of the revised text of pre-State of Israel (New Version)) legislation (see above) (No. 1)

EMERGENCY REGULATIONS (PROTECTION OF EDUCATIONAL 5744-1983״ ,INSTITUTIONS) (CONTINUANCE IN FORCE) LAW

1. The Emergency Regulations (Protection of Educational Institutions), Extension of 5734-19741 (hereinafter referred to as "the Regulations") shall continue in force until the 3rd Elul, 5744 (31st August, 1984).

2. The Minister of Education and Culture, with the approval of the Com Power of early mittee on Education and Culture of the Knesset, may at any time, by order revocation. published in Reshumot, revoke the whole or part of the Regulations or re strict powers thereunder.

3. This Law shall have effect from the 22nd Elul, 5743 (31st August, Commencement. 1983), but no person shall be prosecuted for an offence under the Regulations committed after the said commencement date and before the adoption of this Law by the Knesset.

MENAHEM BEGIN ZEVULUN HAMMMER Prime Minister Minister of Education and Culture CHAIM HERZOG President of thé State

* Passed by the Knesset on the 7th Tishri, 5744 (14th September, 1983) and pub• lished in Sefer Ha-Chukkim No. 1094 of the 14th Tishri, 5744 (21st September, 1983), p. 2; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1637 of 5744, p. 240. 1) Kovetz Ha-Takkanol of 5734, p. 1902; Sefer Ha-Chukkim of 5735, pp. 18 and 196; LSI vol. XXIX, pp. 25 and 259; Sefer Ha-Chukkim of 5736, pp. 174 and 274; LSI vol. XXX, pp. 175 and 268; Sefer Ha-Chukkim of 5739, p. 140; LSI vol. XXXm, p. 173; Sefer Ha-Chukkim of ,5740, p. 153; LSI vol. XXXIV, p. 173; Sefer Ha- Chukkim of 5741, p. 334; LSI vol. XXXV, p. 412; Sefer Ha-Chukkim of 5742, p. 178; LSI vol. XXXVI, p. 185.

3 (No. 2)

JEWISH RELIGIOUS SERVICES (AMENDMENT No. 5) LAW, 5744-1983*

Amendment of 1. In section 6 of the Jewish Religious Services Law (Consolidated Ver- sion), 5731 -19711 (hereinafter referred to as "the principal Law"), subsection 6׳ section (a) shall be replaced by the following subsection:

"(a) The Minister of Religious Affairs shall reconstitute every council in accordance with sections 2 to 5 upon the expiration of six months from the election of the council of the local authority.".

2. A religious council which holds office on the 23rd Tishri, 5744 (30th September, 1983) shall continue in office until the expiration of six months from the election to the council of the local authority held after that date; this provision shall not derogate from the provisions of section 6(b) of the prin cipal Law.

MENAHEM BEGIN YOSEF BURG Prime Minister Minister of Religious Affairs CHAIM HERZOG President of the State

* Passed by the Knesset on the 7th Tishri, 5744 (14th February, 1983) and pub lished in Sefer Ha-Chukkim No. 1094 of the 14th Tishri, 5744 (21st September, 1983), p. 2; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1640 of 5744, p. 2. 1) Sefer Ha-Chukkim of 5731, p. 130 - LSI vol. XXV, p. 125; Sefer Ha-Chukkim of 5733, p. 75 - LSI vol. XXVH, p. 71; Sefer Ha-Chukkim of 5738, p. 104 - LSI vol. XXXII, p. 131; Sefer Ha-Chukkim of 5740, p. 95 - LSI vol. XXXIV, p. 104; Sefer Ha-Chukkim of 5741, p. 148 - LSI vol. XXXV, p. 162.

4 (No. 3)

LOCAL AUTHORITTES (ELECTIONS) (TEMPORARY PROVISIONS) LAW, 5744-1983*

1. For the purpose of the elections to the councils of local authorities to be Temporary held on the 18th Cheshvan, 5744 (25th October, 1983) - provisions.

(1) the following subsection shall be deemed to have been added after section 25(c) of the Local Authorities (Elections) Law, 5725-19651) (hereinafter referred to as "the Election Law"):

"(d) Notwithstanding the provision of subsection (b), a faction** in the Knesset may by written notice, signed by its representative, to the head of the local authority and to the election officer replace the representative of a faction on the outgoing council which has notified under subsection (a) that its name is like that of the faction in the Knesset or is similar to it in its main characteristics, and may also so replace his substitute.";

(2) section 39 of the Elections Law shall be modified as follows:

(a) the words "two letters" shall, wherever occuring in subsec• tions (a), (e) and (0, be deemed to have been replaced by the words "two or three letters";

(b) in subsection (b), the word "Tenth" shall be deemed to have been inserted before the word "Knesset", wherever occurring, and the word "Two" shall be deemed to have been replaced by the word "Three";

"But a person who has been a representative cannot give his consent to the use of a designation or a letter or let• ters of a faction on the outgoing council - other than an affiliated group within the meaning of the Local

* Passed by the Knesset on the 7th Tishri, 5744 (14th February, 1983) and pub• lished in Sefer Ha-Chukkim No. 1094 of the 14th Tishri, 5744 (21st September, 1983), p. 3. the Bill was published in Hatza'ot Chok No. 1639 of 5744, p. 252. 1) Sefer Ha-Chukkim of 5725, p. 248; LSI vol. XK, p. 261; Sefer Ha-Chukkim of 5743, p. 140; LSI vol. XXXVH, p. 164. ** Si'a in Hebrew. The word "faction" will henceforth be used in this translation instead of the expression "party group" (Tr.)

5 Authorities (Financing of Elections) (Temporary Provi sions) Law, 5743-19831 which has notified the head of the local authority of its dissolution.";

(d) the following subsections shall be deemed to have been in serted after subsection (c):

"(cl) A candidates' list shall not bear the designation with which one of the undermentioned lists was marked or one of the characteristic words of such a designation and shall also not be marked with the letter or letters ap pearing opposite the name of one of these lists:

Eretz Yisrael Workers' Party (Mapai).. Alef Mizrahi — Herut Movement Het United Workers' Party (Mapam) Mem Progressive Party — Hapoel Hamizrahi — General Zionists - Centre Party Tzade Maki - Israel Communist Party Kof Ahdut Avoda - Poalei Zion Tav Vav Hamahane Hatorati - Poalei Agudat Yisrael Dalet Liberal Party Lamed Maarakh le-Ahdut Poalei Eretz Yisrael — Eretz Yisrael Workers' Party and Ahdut Avoda Poalei Zion Alef Tov Liberal Party of Israel ־ Gush Herut (Gahal) Het-Lamed Independent Liberal Party Lamed Ayin Israel Workers' List (Rafi) — Free Centre Tet Gahal - Gush Herut, Liberals — State List Ayin Mem Civic Rights and Peace Movement Resh Tzade Shlomzion, Movement for Zionist Fulfilment — Mahane Sheli Shin

Democratic Movement for Change — i Telem - State Renewal Movement — ,

1) Sefer Ha-Chukkim of 5743, p. 132; LSI vol. XXXVII, p. 152. (c2) Notwithstanding the provisions of subsections (c) and (cl) -

(1) the representative of a faction of the outgo• ing council or of a faction of the Tenth Knesset may submit a candidates' list bearing a designa• tion or a letter or letter combination which his faction had on the day mentioned in section 25(a) or on the day of the elections to the Tenth Knesset, as the case may be;

(2) the representative of a faction of the Tenth Knesset or of a unified faction being a combina• tion of two or more parties maintaining one fac• tion in the Tenth Knesset may consent in writ• ing that a candidates' list shall bear the designa• tion or the letter or letter combination of the faction or of the unified faction or of any of its constituent groups in any Knesset".

2. This Law shall come into force on the date of its adoption by the Knes- Commencement, set

MENAHEM BEGIN YOSEF BURG Prime Minister Minister of the Interior CHAIM HERZOG President of the State

7 (No. 4)

LOCAL AUTHORITTES (ELECTIONS) (TEMPORARY PROVISIONS No. 2) LAW, 5744-1983*

־ Definitions. 1. In this Law

"election day" means the 18th Cheshvan, 5744 (25th October, 1983) or the date of the second ballot in the election of the head of the local au thority;

"election worker's pay" means work income, within the meaning of the Income Tax Ordinance1 (hereinafter referred to as "the Ordinance"), paid in consideration of election work done on election day or the preceding evening, up to an amount of 700 shekalim, as well as a payment to cover vehicle expenses incurred, in connection with the elections, on election day or the preceding evening, up to an amount of 1,300 shekalim, the payor being an authority in charge of the conduct of the elections or a faction or list participating in the elections or a parent faction thereof, within the meaning of the Local Authorities (Financing of Elections) (Temporary Provisions) Law, 5743-19832.

Exemption from 2. Notwithstanding anything provided in any law, an election worker's pay

income tax. sna]] not> m me nands 0f jjjg recipient thereof, be regarded as income under the Ordinance. special tax. 3. (a) The recipient of an election worker's pay shall be liable to a special tax under this Law at the rate of 25 per cent.

(b) The person who pays an election worker's pay shall deduct there from, at the time of payment, the special tax referred to in subsection (a).

(c) The special tax deducted as aforesaid shall be paid to the Assessing Officer within two weeks from the date of the deduction, together with a special return in the form prescribed by the Income Tax Commissioner.

* Passed by the Knesset on the 7th Tishri, 5744 (14th February, 1983) and pub lished in Sefer Ho-Chukkim No. 1094 of the 14th Tishri, 5744 (21st September, 1983),'p. 5; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1639 of 5743, p. 253. 1) Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. 1, p. 145. 2) Sefer Ha-Chukkim of 5743, p. 132; LSI vol. XXXVH, p. 152.

8 (d) For the purposes of payment, collection, returns and assessment, the provisions of the Ordinance shall apply as if the special tax were income tax imposed on work income.

MENAHEM BEGIN YORAM ARIDOR Prime Minister Minister of Finance CHAIM HERZOG President of the State (No. 5)

LOCAL AUTHORITIES (ELECTION AND TENURE OF HEAD AND DEPUTY HEADS) (TEMPORARY PROVISIONS) LAW, 5744-1983*

Proposal of l. (a) In addition to those specified in section 5(a) of the Local Authori-

1 candidate. ^ (Eiectjon and Tenure of Head and Deputy Heads) Law, 5735-1975 , a faction** in the Tenth Knesset or a party which has a faction therein (any such faction or party hereinafter referred to as a "parent faction") may propose for the post of head of an authority any person qualified under section 4(b) of that Law to be elected as head of an authority.

(b) A proposal submitted by one parent faction shall be signed by the representative of that parent faction. A proposal submitted by two or more parent factions shall be signed by the representatives of those parent factions.

Commencement. 2. This Law shall come into force on the date of its adoption by the Knes• set

MEN AHEM BEGIN YOSEFBURG Prime Minister Minister of the Interior CHAIM HERZOG President of the State

* Passed by the Knesset on the 7th Tishri, 5744 (14th September, 1983) and pub• lished in Sefer Ha-Chukkim No. 1094 of the 14th Tishri, 5744 (21st September, 1983), p. 3. the Bill was published in Hatza'ot Chok No. 1641 of 5744, p. 4. 1) Sefer Ha-Chukkim of 5735, p. 211; LSI vol. XXIX, p. 273. ** Si'a in Hebrew. The word "faction" will henceforth be used in this translation instead of the expression "party group" (Tr.).

10 (No. 6)

LOCAL AUTHORITIES (ELECTION AND TENURE OF HEAD AND 5744-1983״ ,DEPUTY HEADS) (AMENDMENT No. 5) LAW

1. In section 9 of the Local Authorities (Election and Tenure of Head and Amendment of 9־ Deputy Heads) Law, 5735-19751, the following subsection shall be added af- section ter subsection (d):

"(e) On the date of a second ballot under subsection (b), the polling stations shall be open for voting uninterruptedly from 13.00 hours to 22.00 hours, but in a local authority in which the number of those entitled to vote does not exceed 350, the polling-station shall be open uninterruptedly from 13.00 hours to 20.00 hours; a polling-station shall be closed before the said time if all those entitled to vote thereat have already voted.".

MENAHEM BEGIN YOSEFBURG Prime Minister Minister of the Interior CHAIM HERZOG President of the State

* Passed by the Knesset on the 7th Tishri, 5744 (14th September, 1983) and pub lished in Sefer Ha-Chukkim No. 1094 of the 14th Tishri, 5744 (21st September, 1983), p. 6. the Bill was published in Hatza'ot Chok No. 1639 of 5744, p. 252. 1) Sefer Ha-Chukkim of 5735, p. 211; LSI vol. XXIX, p. 278; Sefer Ha-Chukkim of 5736, p. 151; LSI vol. XXX, p. 278; Sefer Ha-Chukkim of 5738, p. 137; LSI vol. XXXÜ, p. 127; Sefer Ha-Chukkim of 5740, p. 160; LSI vol. XXXIV, p. 178; Sefer Ha-Chukkim of 5743, p. 142; LSI vol. XXXVII, p. 166.

11 (No. 7)

ELECTIONS (MODES OF PROPAGANDA) (TEMPORARY PROVISIONS) LAW, 5744-1983*

Temporary 1. For the purposes of the elections to the local authorities to be held on

provisions. tne !8th Cheshvan, 5744 (25th October, 1983) (hereinafter referred to as "election day"), the provisions of sections 5, 15, 15A and 15B of the Elec tions (Modes of Propaganda) Law, 5719-19591 (hereinafter referred to as "the Modes of Propaganda Law") shall not apply, and the provisions of this Law shall apply.

Election 2. (a) From the date of the adoption of this Law by the Knesset until elec- propaganda. uon or> wnere a second ballot is held, until the date of the second ballot, there shall be no election propaganda by radio broadcasts or by cinema or television screenings.

(b) From the 21st day before election day until election day, no event in which a candidate for a municipality or local council plays any part shall be broadcast by radio or screened at a cinema or on television. If a second ballot is held in any local authority, no event in which a candidate for election on the second ballot plays any part shall be broadcast or screened as aforesaid in the period between election day and the date of the second ballot.

Applicability of 3. An offence under the provisions of section 2 shall be treated like an of- penai provisions. fence under the Modes of Propaganda Law.

Order to pay 4. Where a person is convicted under section 17 of the Modes of Propa-

,infringement 0f ^e provisions of section 10 of that Law ״cleaning expenses. ganda Lflw fof a the Court may, in addition to any .penalty it may impose, order him to pay the cleaning expenses as estimated by it, which have been or will be caused by non-compliance with the said provisions.

* Passed by the Knesset on the 7th Tishri, 5744 (14th September, 1983)'and pub lished in Sefer Ha-Chukkim No. 1094 of the 14th Tishri, 5744 (21st September, 1983), p. 7; the Bill was published in Halza'ol Chok No. 1639 of 5743, p. 254. 1) Sefer Ha-Chukkim of 5719, p. 138; LSI vol. XHI, p. 146. Sefer Ha-Chukkim of 5741, pp. 198 and 331; LSI vol. XXV, pp. 233 and 411. I 12 5. This Law shall come into force on the date of its adoption by the Knes- Commencement, set. MENAHEM BEGIN YOSEFBURG Prime Minister Minister of the Interior CHAIM HERZOG President of the State

13 (No. 8)

EMERGENCY REGULATIONS (TRIAL OF OFFENCES COMMITTED IN LEBANON BY VISITORS FROM ISRAEL) (EXTENSION OF VALIDITY) (AMENDMENT No. 3) LAW, 5744-1983*

Amendment of 1. In section 1 of the Emergency Regulations (Trial of Offences Commit-

section l. ted in Lebanon by Visitors from Israel) (Extension of Validity) Law, 5743- 1982», thé words "the 24th Cheshvan, 5744 (31st October, 1983)" shall be replaced by the words "the 26th Adar Alef, 5744 (29th February, 1984)".

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

* Passed by the Knesset on the 19th Cheshvan, 5744 (26th October, 1983) and pub• lished in Sefer Ha-Chukkim No. 1095 of the 23rd Cheshvan, 5744 (30th October, 1983), p. 10; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1643 of 5744, p. 19. 1) Sefer Ha-Chukkim of 5743, pp. 6, 56 and 118; LSI vol. XXXVH, pp. 5, 57 and 139.

14 (No. 9)

LAND (AMENDMENT No. 9) LAW, 5744-1983*

1. In section 58 of the Land Law, 5744-19831 (hereinafter referred to as Amendment of "the principal Law"), the following shall be added at the end: "For this pur• section 58. pose, "proper maintenance" means preservation of the common property in the condition in which it was at the time of the completion of construction and includes improvements made thereafter with the consent of the owners of the dwellings.".

2. The following shall be added at the end of section 2(a) of the Schedule to Amendment of the principal Law: "For this purpose, "prejudicially affect the common prop• section 2 of the Schedule. erty" includes prejudicially affect the proper, uniform external appearance thereof which existed at the time of the completion of construction.".

DAVID LEVY MOSHE NISSIM Deputy Prime Minister Minister of Justice Acting Prime Minister CHAIM HERZOG President of the Slate

* Passed by the Knesset on the 15th Kislev, 5744 (21st November, 1983) and pub• lished in Sefer Ha-Chukkim No. 1096 of the 24th Kislev, 5744 (30th November, 1983), p. 12; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1632 of 5743, p. 198. 1) Sefer Ha-Chukkim of 5729, p. 259 - LSI vol. XXm, p. 283; Sefer Ha-Chukkim of 5739, p. 20 - LSI vol. XXXTII, p. 24; Sefer Ha-Chukkim of 5741, p. 106 - LSI vol. XXXV, p. 110.

15 (No. 10)

INCOME TAX CONCESSIONS (INVESTMENT IN SECURITIES) (CONSIDERATION EARMARKED FOR SCIENTIFIC RESEARCH) LAW, 5744-1983*

Interpretation. 1. In this Law -

(1) every term shall have the same meaning as it has in the Ordinance unless otherwise expressly provided by this Law;

(2) "the Ordinance" means the Income Tax Ordinance1;

under-Conditions-of-Inflation Law" means the In־the Taxation" (3) come Tax (Taxation under Conditions of Inflation) Law, 5742-19822;

(4) "the competent authority" means the Director-General of the Min istry of Finance jointly with the Director-General of the Ministry of In dustry and Commerce and the Director-General of the Ministry of Sci ence and Development, in consultation with the Director-General of the Ministry to whose field of activity the subject of the research belongs;

(5) "dollar" means a dollar of the United States of America;

(6) "rate of exchange" means the representative rate of the dollar last fixed by the Bank of Israel before the date in question;

(7) "option" means a security conferring a right to acquire a share, other than a preference share, in the issuing company or the eligible company in the period and on the conditions prescribed by the issuing company at the time of issue, but does not include a convertible secu rity;

(8) "research" means scientific research, and scientific development, approved by the competent authority under section 2;

(9) "eligible company" means a company for which the competent au thority has approved research and an entitling issue;

* Passed by the Knesset on the 22nd Kislev, 5744 (28th November, 1983) and pub lished in Sefer Ha-Chukkim No. 1097 of the 28th Kislev, 5744 (4th December, 1983), p. 14; the Bill and an Explanatory Note were published in Halza'ot Chok No. 1642 of 5744, p. 5. 1) Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120 - NV vol. I, p. 145; Sefer Ha-Chukkim of 5743, p. 59 and 103 - LSI vol. XXXVII, pp. 60 and 124. 2) Sefer Ha-Chukkim of 5742, p. 234 - LSI vol. XXXVI, p. 249.

16 (10) "entitling issue" means the issue of participation units by an eligible company or a subsidiary of an eligible company, the participa• tion units being offered to the public under a prospectus indicating -

(a) that the Stock Exchange has agreed in principle to register the securities constituting the participation units for trading at it or that the issuer is about to apply to the Stock Exchange so to register them; and

(b) that the consideration for the participation units will be used for research by the eligible company;

(11) "original allocation" means the allocation of a security to an acquirer upon its being first issued;

(12) "participation unit" means a debenture together with an option, or a debenture convertible into a share, or a share (each of these three referred to, for the purposes of this Law, as a "security"), or a combination thereof, which, in addition to the rights arising out of its nature, may confer, or carry, a right to royalties from the proceeds of the research carried out by the eligible company, or several securities, and a right as aforesaid, offered to the public as "one package", as the Minister of Finance may approve for this purpose in respect of any entitling is• sue; the Minister of Finance may prescribe the minimum price at which a participation unit may be offered to the public, and the nominal value or the cost, as the case may be, of the securities included therein, having regard to the measure of risk the acquirer of the unit is required to bear, and the purchase price of each security for the purposes of the Taxation- under-Conditions-of-Inflation Law, taking into account the tax conces• sion to which the acquirer is entitled under this Law;

(13) "amount of participation in research" means the consideration received from the sale of the aggregate of participation units by way of original allocation, with the deduction of an amount equal to the aggre• gate nominal value of the securities included in the participation units.

2. (a) An application for the approval of scientific research and scientific Approval of development and of an entitling issue (hereinafter referred to as "the applica- scientific research. tion") shall be submitted to the competent authority together with the re• search scheme, the capital-raising scheme and the export scheme. (b) The competent authority may approve the application if all the fol- i lowing have been proved to its satisfaction: (1) that the research will be carried out by an industrial company,

17 within the meaning of the Encouragement of Industry (Taxes) Law, 5729-19691 which in the tax year preceding the submission of the application exported products manufactured by it, as a result of re• search and development carried out by it, to the value of at least 20 million dollars.

(2) that the cost of the research is equivalent to at least 7.5 mil• lion dollars;

(3) that the object of the research is the manufacture of new or improved industrial products by the entitling company (hereinafter referred to as "the research products") in Israel; however, under a permit from the competent authority, a part, to be indicated in the permit, of the research products may be manufactured outside Israel, provided that the part manufactured outside Israel shall not exceed 30 per cent of the total production costs of the research products, to be calculated according to prescribed rules, and that, in considera• tion of the grant of a permit for manufacture outside Israel, the eli• gible company shall pay royalties under section 8;

(4) that the applicant company has undertaken to export part of the• research products, at a rate prescribed by the competent author• ity and which shall not in the aggregate be less than ten times the amount raised by it through the entitling issue, expressed in dollars at the rate of exchange of the date of issue; an annual export quota shall be prescribed by the competent authority.

(c) Where the competent authority decides not to approve the applica• tion, it shall notify the applicant company by reasoned notice in writing.

Conditions of 3. An entitling issue by a subsidiary of an eligible company shall not be approval of approved unless the subsidiary is a company, established by the eligible subsidiary as an issuing company. company, whose sole object is to float entitling issues to finance research carried out by the eligible company and which may for this purpose carry out the following, and only the following, acts:

(1) the placing of the moneys raised by it through an entitling issue in a deposit with the Treasury, as provided in section 5, and the transfer of moneys returned out of the deposit, including the interest and linkage differentials accumulated thereon, to the eligible company;

1) Sefer Ha-Chukkim of 5729, p. 232 - LSI vol. XXHI, p. 253.

18 (2) the payment of dividend, interest and royalties, as the case may be, from the proceeds of the research, to or to the order of the owners of the securities included in the participation units, out of moneys transferred to it for this purpose by the eligible company, immediately upon receipt thereof.

4. (a) In determining the chargeable income of an assessee who acquired a How to deal with participation unit for cash, by way of original allocation, there shall be per• investment in participation unit. mitted for deduction the cash amount paid by him for its acquisition (hereinafter referred to as "the cost price") or an amount 60 per cent of which is equal to the difference between the cost price and the nominal value of the securities in the participation unit, whichever is less: Provided that there shall not, in any tax year, be deducted under this section, in respect of all his acquisitions as aforesaid, an amount exceeding 30 per cent of his chargeable income in that year.

(b) (1) The tax which is spared the assessee as a result of the deduc• tion mentioned in subsection (a) may be set off in the course of the year, after payment for the acquisition of the participation unit, against the tax deducted at source from work income or against advance payments to which the acquirer is liable under section 175 of the Ordinance after the date of the said payment, and the balance shall be set off as follows: in respect of work income, in the following years or upon filing the return under section 131 of the Ordinance for the year to which the deduction relates, at the assessee's option, and in respect of other income, upon filing the return as aforesaid;

(2) a set-off against a deduction at source or against advance pay• ments as aforesaid shall be permitted to a person in possession of approval therefor in the form prescribed by the Commissioner; the form may be general or for a particular issue;

(3) "spared tax", for the purposes of this subsection, means the amount of tax from the payment of which the assessee is exempt in consequence of the deduction under subsection (a); however, for the purposes of a set-off against advance payments only, the spared tax shall be calculated, in the case of an assessee being an individ• ual, on the basis of a tax rate of 55 per cent, and in the case of an assessee being a body of persons, on the basis of the average tax rate for the preceding tax year; for the purposes of section 190A of the Ordinance, a set-off against a deduction at source, or against ad• vance payments, under this section shall be treated as the set-off of an amount deducted at source as provided in section 177 of the Or• dinance.

\ 19 (c) Subject to the provisions of section 20 of the Taxation-under Con- ditions-of-Inflation Law, linkage differentials derived from a debenture included in a participation unit shall be exempt from tax.

(d) A payment deductible under this section for the acquisition of a par• ticipation unit shall not be permitted for deduction under section 20A of the Ordinance, and the tax which the assessee would have to pay but for the deduction permitted under subsection (a), but not less than 60 per cent of the amount permitted for deduction, shall, for the purposes of the Taxation- under-Conditions-of-Inflation Law, be deducted from the equity capital from the tax year following the tax year in which the deduction is permitted.

Duty to make 5. (a) Moneys raised by a company through an entitling issue shall be deposit. deposited with the Accountant-General at the Ministry of Finance (any such deposit hereinafter referred to as a "Treasury deposit") and shall be returned in order to be used in carrying out research, according to the progress thereof, all in pursuance of rules prescribed by the competent authority.

(b) The deposit shall be linked to the rate of exchange and shall bear interest at the rate of half the PATAM interest. The interest and linkage differentials on each part of the moneys of the deposit shall be paid on its being returned to the issuing company.

(c) For the purposes of this section, "PATAM interest", in relation to moneys deposited on a particular day, means the interest as to which the Bank of Israel announces on that day that it will pay it in dollars, from the second business day following that day, on dollar amounts deposited with banking corporations for six months out of moneys of resident's deposits within the meaning of the Currency Control Permit 5738-19781 . If the rate of such interest as aforesaid cannot be determined, the Governor of the Bank of Israel shall prescribe the rate of interest. For this purpose, "business day" means a day of business in foreign currency at the Bank of Israel for transactions between the Bank of Israel and banking corporations.

How to deal with 6. (a) Amounts - including the linkage differentials accumulated thereon - amounts raised expended by an eligible company, out of an amount of contribution to through entitling issue. research, for the purpose of carrying out the research, shall not be deductible in determining its chargeable income. For the purposes of this subsection, where any amount is expended by the company, out of the moneys of the deposit, for the carrying out of the research, such part thereof as bears to the whole thereof the same proportion as the total amount of contribution to

1) Kovetz Ha-Takkanot of 5738, p. 1006; Kovetz Ha-Takkanot of 5742, p. 1376.

20 research bears to the total amount of the consideration received from the sale of the participation units shall be deemed to be the amount of the contribution to research.

(b) An amount of contribution to research shall not be regarded as in• come in the hands of the company which floated an entitling issue.

(c) Linkage differentials paid by the Accountant-General in respect of a part of the Treasury deposit which is not an amount of contribution to research shall be chargeable with tax, but linkage differentials in respect of a part of the deposit which is an amount of contribution to research shall be exempt from tax.

(d) For the purposes of the Taxation-under-Conditions-of-Inflation Law, the amount of contribution to research shall be treated like the amount of a contribution by another person to the financing of research, as referred to in section 20A of the Ordinance; however -

(1) notwithstanding anything provided in the Second Schedule to the Taxation-under-Conditions-of-Inflation Law, so long as an amount as aforesaid is in a Treasury deposit it shall be an unpro• tected asset;

(2) notwithstanding anything provided in the First Schedule to the Taxation-under-Conditions-of-Inflation Law, linkage differentials on the Treasury deposit shall be added to the equity capital from the beginning of the tax year following the year in which they are ex• pended for the purpose of carrying out research and diminish the equity capital.

(e) A company which, if it had not an income derived from a Treasury deposit, would be an industrial company within the meaning of the En• couragement of Industry (Taxes) Law, 5729-1969, shall, notwithstanding the provisions of the said Law, be regarded as an industrial company even if it has such an income.

(f) In the case of a major-foreign-investment company, within the meaning of section 53H of the Encouragement of Capital Investments Law, 5719-19591 (hereinafter referred to as "the Encouragement of Investments Law"), the following provision shall, notwithstanding anything provided in any law, apply in respect of alternative benefits under section 53Q of the said Law: amounts expended by the company in carrying out research, out of a deposited amount of contribution to research, including linkage differentials

1) Sefer Ha-Chukkim of 5719, p. 234 - ¿5/ vol. Xffl, p. 358. accumulated thereon, shall be regarded as equity capital from the tax year following the year in which they are expended and diminish the distributable profits.

(g) In the case of a foreign-investment company, within the meaning of section 53H of the Encouragement of Investments Law, to which the provisions of section 53J of the said Law apply, the part of the Treasury deposit which is an amount of contribution to research shall not for the purposes of the capital stabilisation allocation under the said section 53J be regarded as floating assets, but the amount of the nominal value of a debenture in the participation unit, and the linkage differentials accumulated on such amount, shall be regarded as a floating liability.

How to deal with 7. Where an entitling issue is launched through a subsidiary of an eligible entitling issue company, the following provisions shall apply: effected through subsidiary. (1) the amounts raised through the issue and placed in a Treasury de posit shall be deemed to have been raised and deposited by the eligible company;

(2) the amounts returned to the subsidiary out of the moneys of the de posit, including the interest and the linkage differentials thereon, shall be deemed to have been returned direct to the eligible company;

(3) the expenses of the issue shall be deemed to have been incurred by the eligible company;

Inflation Law־the provisions of the Taxation-under-Conditions-of (4) shall not apply to the subsidiary, and the capital of the subsidiary shall be deemed to be part of the capital of the eligible company;

(5) any dividend, interest or royalties paid by the subsidiary in respect of a security originating in a participation unit included in an entitling issue shall be deemed to have been paid by the eligible company.

Royalties for 8. (a) An eligible company which has received from the competent au permission to thority a permit to manufacture research products outside Israel shall pay to manufacture products abroad. the Treasury royalties from the total amount of c&.isideration received in a particular year from the total sales of research products in and outside Israel, with the deduction of the consideration received in that year from the sale of research products, or parts thereof, manufactured in Israel. For this purpose, the expenditure and income of marketing and maintenance services, as defined by the competent authority, shall not be taken into account. The rate of the royalties shall be as follows:

22 (1) in respect of a permit to manufacture outside Israel research products the cost of the manufacture of which is between 5 per cent and 20 per cent of the total cost of the manufacture of the research products - 5 per cent;

(2) in respect of a permit to manufacture outside Israel research products the cost of the manufacture of which exceeds 20 per cent of the total cost of the manufacture of research products - a rate, ex• ceeding 5 per cent, prescribed by the competent authority.

(b) The royalties shall be paid upon filing the return under section 131 of the Ordinance for the tax year and they shall, for the purposes of payment in time and collection, be treated like the tax.

9. An eligible company which has received approval for carrying out any Duty to provide research shall furnish the competent authority, at its request, with any infor- information. mation, documents or other evidence as to the carrying out of the research, compliance with the conditions of the approval, the particulars of production in and outside Israel, the amounts received by it from the entitling issue and the mode of using them, and the consideration received by it from the sale of the research products.

10. (a) (1) Where the competent authority finds that the whole or part of Noncompliance an amount raised by an eligible company has not been expended for with conditions of approval. carrying out scientific research, or has been expended otherwise than in accordance with the conditions of the approval, such amount shall in the hands of the el-igible company be regarded as chargeable income the rate of tax on which is 100 per cent, without a right to any exemption, deduction or set-off whatsoever; the date of payment of the tax, for the purpose of determining interest and linkage differentials under section 159A of the Ordinance, shall be the date of the deposit of the amounts raised.

(2) Where the competent authority finds that a subsidiary has not deposited the whole or part of an amount raised by it through an entitling issue within seven days from the date of raising it, or has not immediately transferred to the eligible company any amount re• turned to it out of the deposit for the purposes of the use thereof in carrying out the research, or has not paid to the owners of any secu• rities any amounts received by it for this purpose from the eligible company immediately upon receiving them, the provisions of paragraph (1) shall apply to such amounts as aforesaid.

23 (b) (1) Where the competent authority finds that an eligible company has not exported any research products to the extent to which it has undertaken to do so under section 2(b)(4), the company shall have to pay to the Assessing Officer a proportion as specified below of the amount of contribution to research, together with interest and linkage differentials under section 159A of the Ordinance, as if it were tax the date of payment of which is the date of the deposit of the amounts raised.

Proportion of Amount of Contribution to Proportion of Unfulfilled Export Pledge Research

(a) from 1 per cent to 25 per cent 5 per cent (b) exceeding 25 per cent but not exceeding 50 per cent 25 per cent (c) exceeding 50 per cent but not exceeding 65 per cent 50 per cent (d) exceeding 65 per cent but not exceeding 85 per cent 75 per cent (e) exceeding 85 per cent 100 per cent

(2) Notwithstanding the provision of paragraph (1), the competent authority may grant exemption from payment under the said para• graph if the eligible company proves to the satisfaction of the competent authority that its failure to export the research products to the extent fixed in the approval was due to reasons beyond its control.

(c) Interest and linkage differentials under subsection (b) shall be de• ductible for the purpose of determining the cha!geable income of the eli-gible company.

(d) Notice of a finding by the competent authority under this section shall be given in writing to the eligible company.

Objection to 11. A person who disputes a decision of the competent authority under sec• decision of tion 2 or 3 or a finding of the competent authority under section 10 may competent authority. lodge objection with the Minister of Finance and the Minister of Industry and Commerce or a person empowered by them within thirty days from the day on which notice of the decision or finding was served upon him. The reasons of the objection shall be stated.

24 12. The provisions of the Ordinance as to the power to obtain information, Application of the enforcement of payments and penalties, and the provisions of Chapter provisions of Ordinance. Twelve of the Ordinance, shall apply for the purposes of this Law.

13. (a) The Minister of Finance and the Minister of Industry and Com• Implementation and merce are charged with the implementation of this Law and may make regu• regulations. lations as to any matter relating to its implementation.

(b) The Minister of Finance may, either generally or in respect of a particular entitling issue, enact provisions as to the conditions of the re• demption of debentures.

14. (a) In section 20A(a) of the Ordinance- Amendment of Ordinance. (1) the following shall be added at the end of paragraph l(b)\

"The expenditure which represents a contribution as aforesaid shall be deductible in instalments as follows: in the tax year in which the expenditure is incurred, such part thereof as bears to the whole thereof the same pro• portion as the number of months from the month follow• ing the month in which the expenditure is incurred until the end of the tax year bears to twelve, and the balance in the following tax year; for the purpose of calculating the aforesaid proportional part, an advance undertaking to in• cur expenditure in twelve equal monthly payments shall be deemed to be expenditure wholly incurred upon the first payment";

(2) the following paragraphs shall be inserted after paragraph (1):

"(1A) a contributor to the financing of research carried out by another person, as specified in paragraph (l)(b), may set off the tax spared against the tax deducted at source from work income or against advance payments to which he is liable under section 175 from the month fol• lowing the month in which the expenditure is incurred; where a balance remains to be set off in respect of a par• ticular tax year, the set-off shall be permitted upon the filing of the return for that year; for this purpose, "tax spared" means the amount of tax from the payment of which the assessee is exempt in consequence of the de• duction under paragraph (1) but, for the purposes of a set• off against advance payments only, the tax spared shall,

25 in the case of the assessee being an individual, be calcu• lated on the basis of a tax rate of 55 per cent, and in the case of an assessee being a body of persons, on the basis of the average tax rate for the preceding tax year;

(IB) for the purposes of section 190A, a set-off against a deduction at source, or against advance payments, under paragraph (1A) shall be treated as the set-off of an amount deducted at source as provided in section 177;

(IC) if the person carrying out any research approved by whoever is competent under paragraph (1) to approve it raises, from investors in research and development, amounts which, together with the amount invested by himself in that research, exceeds the amount expended by him in carrying out that research, the amount in excess of the amount expended by him shall in his hands be re• garded as chargeable income the rate of tax on which is 100 per cent, without a right to any exemption, deduc• tion or set-off whatsoever; the date of payment of the tax, for the purpose of determining interest and linkage differ• entials under section 159 A, shall be the date on which the excess amount created; the Minister of Finance shall, with the approval of the Finance Committee of the Knesset, prescribe rules for calculating the excess amount and the date on which it was created.".

(b) The following section shall be inserted after section 20A of the Or- dinance:

Overall ceiling 20A1. (a) The amount deductible in respect of a con• for deduction in tribution to the financing of research and development respect of research and development. carried out by another, under section 20A(a) or any other law, shall not exceed 40 per cent of the chargeable income of the assessee in the tax year in which the ex• penditure is incurred.

(b) The provisions of subsection (a) shall not apply in respect of the amounts of a contribution by an industrial holding company to a company under its con• trol; for this purpose -

"industrial holding company" means a company of whose assets - except assets derived from moneys obtained through an issue on a foreign stock exchange not more than one year from the date of issue - at least 80 per cent is invested, during the whole tax year, in share capital of an industrial company or in loans for at least three years granted to an industrial company;

"industrial company" has the same meaning as in the Encouragement of Industry (Taxes) Law, 5729-1969;

"control" has the same meaning as in section 25.

Deduction 20A2. An amount ox tax from the payment of which in respect the assessee is exempt owing to a deduction by reason of of research and a contribution to the financing of research and develop• development ment carried out by another, under section 20A(a) or any to be added to the basis other law, shall be added to the amount of tax which of advance forms the basis for determining advance payments under payments. section 175.

Deduction in 20A3. For the purposes of the reduction of the respect of amount of advance payments, under section 190(a)(2), in research and development any tax year, otherwise than owing to a deduction by and reduction reason of a contribution to the financing of research and of advance payments. development carried out by another, under section 20A(a) or any other law, the tax from the payment of which the assessee is exempt owing to a deduction as aforesaid shall not be taken into account in determining the tax based on the return.".

15. Section 14 shall apply from the tax year 1984 onwards. Application.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

27 (No. 11)

NATIONAL INSURANCE (INCOME FROM AGRICULTURE) (TEMPORARY PROVISIONS) LAW, 5744-1983*

Interpretation. 1. In this Law -

"the Insurance Law" means the National Insurance Law (Consolidated Version), 5728-19681;

"the Ordinance" means the Income Tax Ordinance2;

"insured agriculturist" means an insured person who has income under section 8(2) of the Ordinance;

"assessment for the transition year" means an assessment for which, un• der section 7 of the Ordinance, permission has been given to make it on the basis of the income of an insured agriculturist in the period from the 17th Tammuz, 5740 (1st July, 1980) or the 21st Tishri, 5741 (1st Oc• tober, 1980) to the 7th Nisan, 5742 (31st March, 1982).

Payment of 2. An insured agriculturist whose income has been determined by an as• surance contn- sessment for the transition year shall pay insurance contributions for the fi- butions for the J r j financial year nancial year 1982 on the basis of the entire income determined by that as- 1982- sessment.

Maximum for 3. In the financial year 1982, the maximum amounts of income according payment of to which insurance contributions are payable under section 167(a) of the In• insurance contributions. surance Law shall, in respect of 75 per cent of the income determined by the assessment for the transition year, be the maximum amounts for the finan• cial year 1982 calculated in accordance with the provision of section 167B of the Insurance Law and shall, in respect of 25 per cent of the said income, be half the maximum amount which was in force in the period from the 8th Nisan, 5742 (1st April, 1982) to the 13th Tishri, 5743 (30th September, 1982).

* Passed by the Knesset on the 30th Kislev, 5744 (6th December, 1983) and pub• lished in Sefer Ha-Chukkim No. 1098 of the 9th Tevet, 5744 (15th December, 1983), p. 22; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1646 of 5744, p. 36. 1) Sefer Ha-Chukkim of 5728, p. 108; LSI vol. XXII, p. 114. 2) Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145.

28 4. In the financial year 1982, the minimum amounts of income according Minimum for to which insurance contributions are payable under section 167(b) of the In• payment of insurance surance Law shall, in respect of 75 per cent of the income determined by the contributions. assessment for the transition year, be the minimum amount for the financial year 1982 stated in Table XI to the Insurance Law and shall, in respect of 25 per cent of the said income, be half the said minimum amount

5. For the purposes of advance payments on insurance contributions in the Advance payments financial year 1983 and subsequent years - such advance payments being cal• on insurance contributions. culated on the basis of the income determined by the assessment for the tran• sition year - 75 per cent of the entire income determined as aforesaid shall be deemed to be income determined by the assessment for the financial year 1981.

6. For the purposes of any matter under the Insurance Law, except the mat• Calculation of ters specified in sections 2 to 5, where an insured agriculturist paid insurance income. contributions in the tax year 1982 according to the income determined by the assessment for the transition period, the income which served as basis for the payment of insurance contributions in that year shall be deemed to be 75 per cent of the entire income determined as aforesaid.

YITZCHAK SHAMIR AHARON UZAN Prime Minister Minister of Labour and Social Affairs CHAIM HERZOG President of the State

29 (No. 12)

PLANT BREEDERS' RIGHTS (AMENDMENT) LAW, 5744-1983*

Change of title. 1. The Plant Breeders' Rights Law, 5733-19731 (hereinafter referred to as "the principal Law") shall henceforth be called the Plant Variety Breeders' Rights Law, 5733-1973.

Amendment of 2. In section 1 of the principal Law, the definition of "the Convention" section 1. shall be replaced by the following definition:

""the Convention" means the International Convention for the Protec• tion of New Varieties of Plants, 1961, as amended at Geneva in 1972 and 1978;".

Amendment of 3. In section 2(a) of the principal Law, the words "to the plants and species section 2. of plants" shall be replaced by the words "to botanical genera and species".

Amendment of 4. In section 7 of the principal Law, paragraph (1) shall be replaced by the section 7. following paragraph:

"(1) its reproduction material had been utilised, except for utilisation being marketing or other commercial use, for a period not exceeding -

(a) in Israel - one year;

(b) outside Israel, in the case of vines, forest trees, fruit trees and ornamental trees - six years, and in the case of other plants - four years;".

Amendment of 5. In section 16(b) of the principal Law, the words "The Registrar may section 16. stay the examination of the application until payment of the expenses or ad• vance payments at the rate of the day of payment" shall be added at the end.

* Passed by the Knesset on the 30th Kislev, 5744 (6th December, 1983) and published in Sefer Ha-Chukkim No. 1098 of the 9th Tevet, 5744 (15th December, 1983), p. 23; the Bill and an Explanatory Note were published in Halza'ot Chok No. 1649 of 5744, p. 67. 1) Sefer Ha-Chukkim of 5733, p. 272; LSI vol. XXVII, p. 319. 2) Kitvei Amana No. 911, vol. 27, p. 145.

30 6. In section 20(a) of the principal Law, paragraph (4) shall be replaced by Amendment of the following paragraph: section 20-

"(4) the name proposed for the variety;".

Amendment of ־ In section 21 of the principal Law .7 section 21. (1) in subsection (a), the words "any further material" shall be replaced by the words "reproduction material or any further material"; (2) in subsection (b), the words "the material" shall be replaced by the words "the reproduction material or further material".

8. In section 22(a) of the principal Law - Amendment of section 22. (1) in the opening passage, the words "in a daily newspaper" shall be deleted; (2) in paragraph (3), the words "as given by the applicant" shall be added at the end*.

YITZCHAK SHAMIR PESSACH GRUPPER Prime Minister Minister of Agriculture CHAIM HERZOG President of the State

This requires the insertion of a comma after the words "variety" and "characters", respectively, in the English version [Tr.].

31 (No. 13)

EMERGENCY REGULATIONS (REGISTRATION AND MOBILISATION OF EQUIPMENT) LAW, 5744-1983*

Extension of 1. The Emergency Regulations (Registration and Mobilisation or Equip- validi'y- ment), 5717-19561, is hereby extended until the 7th Tevet, 5745 (31st De• cember, 1984).

YITZCHAK SHAMIR MOSHE ARENS Prime Minister Minister of Defence CHAIM HERZOG President of the State

* Passed by the Knesset on the 30th Kislev, 5744 (6th December, 1983) and pub• lished in Sefer Ha-Chukkim No. 1098 of the 9th Tevet, 5744 (15th December, 1983), p. 24; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1643 of 5744, p. 17. 1) Kovetz Ha-Takkanot of 5717, p. 339; Sefer Ha-Chukkim of 5731, p. 156; LSI vol. XXV, p. 149; Sefer Ha-Chukkim of 5732, p. 46; LSI vol. XXVI, p. 47; Sefer Ha- Chukkim of 5736, p. 80; LSI vol. XXX, p. 86; Sefer Ha-Chukkim of 5741, p. 122; LSI vol. XXXV, p. 131.

32 (No. 14)

EMERGENCY REGULATIONS (HOLDING DETAINEES FROM LEBANON IN DETENTION FN ISRAEL) (EXTENSION 5744-1983׳ ,OF VALIDITY) LAW

1. The validity of the Emergency Regulations (Holding Detainees from Extension of Lebanon in Detention in Israel), 5743-19831, as set out in the Schedule, is validity, hereby extended until the 23rd Iyar, 5744 (25th May, 1984).

This Law shall have effect from the 16th Kislev, 5744 (22nd November, Commencement. 1983).

SCHEDULE (Section 1)

Detention Order 1. (a) A commander in the Israel Defence Forces of the rank of at least aluf (major-general) (hereinafter referred to as a "commander") who has rea sonable grounds for believing that considerations of state security or public security require that a person who is not an Israeli national or a resident of Israel, who was arrested in Lebanon and is in Israel, shall be held in detention may direct by order that such person be detained for a period indicated in the order not exceeding three months (such an order hereinafter referred to as a "detention order").

(b) Where immediately before the expiration of an order under subreg- ulation (a) (hereinafter referred to as "the original detention order") a commander has reasonable grounds for believing that considerations of state security or public security still require that the detainee be held in detention, he may from time to time, by order, direct that the original detention order be extended for a period not exceeding three months, and the extension order shall be treated in like manner as the original detention order.

* Passed by the Knesset on the 7th Tevet, 5744 (13th December, 1983) and published in Sefer Ha-Chukkim No. 1099 of the 10th Tevet, 5744 (16th December, 1983), p. 26; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1648 of 5744, p. 63. 1) Kovetz Ha-Takkanot of 5743, p. 1910.

33 (d) A detention order shall be carried out by a police officer or by a soldier within the meaning of the Military Justice Law, 5719-19551, and shall serve as a warrant for the confinement of the detainee in a place of detention prescribed by the detention order or by a subsequent detention order, under conditions prescribed by the Minister of Justice by regulations under .־ section 3 of the Emergency Powers (Detention) Law, 573919792

Review of Detention Order

2. (a) The Minister of Justice shall appoint an objection committee or objection committees for the purposes of these Regulations. An objection committee shall consist of three members and be headed by a Judge of the District Court. Notice of the establishment and composition of an objection committee shall be published in Reshumot.

(b) A detainee may object to a detention order before an objection committee and may appear personally before the committee and state his case.

(c) The possibility of lodging objection and the procedure for lodging it shall be brought to the knowledge of the detainee as soon as possible but not later than two weeks from the day of his arrest under regulation 1(a).

(d) An objection committee shall begin to hear an objection as soon as possible but not later than fourteen days from the lodging thereof.

(e) An objection committee shall proceed in accordance with such rules of procedure and rules of evidence as it deems just and expedient.

(f) An objection committee shall decide whether to confirm the deten tion as prescribed by the detention order or whether to limit it in time, subject it to conditions or cancel it.

1) Sefer Ha-Chukkim of 5715, p. 171 - LSI vol. IX, p. 184. 2) Sefer Ha-Chukkim of 5739, p. 76 - LSI vol. XXXHI, p. 89. 3. The Emergency Regulations (Detention) Law, 5739-1979, shall not ap- inapplicability of ply to detention under these Regulations. Law•

YITZCHAK SHAMIR MOSHE ARENS Prime Minister Minister of Defence CHAIM HERZOG President of the State

35 (No. 15)

TRAFFIC ORDINANCE (AMENDMENT No. 17) LAW, 5744-1983*

Amendment of 1. In section 27 of the Traffic Ordinance1 (hereinafter referred to as "the Or• section 27. dinance") -

(1) subsection (a) shall be replaced by the following subsection:

"(a) The court which tries a traffic offence may, in respect thereof, admit as evidence -

(1) a written statement by a police officer or a person duly empowered to make such a statement, or a report by a tester of the Israel Police, if such statement or report was made in the discharge of the functions of the person who made it;

(2) a written statement by a person who was present at the time of the commission of the offence, being one of the offences specified in the Fourth Schedule, if the statement was made before or taken down by a police of• ficer and certified by the signature of the person who made it:

Provided that the statement or report was made as soon as possible after the occurrence of the offence.

(2) in subsection (d), the words "If a party is not represented by an ad• vocate, the court shall inform such party of his right to summon the person who made the statement or report for examination" shall be in• serted after the words "the court shall grant the application of a party for it so to order"."

Amendment of 2. In section 47 of the Ordinance - section 47. (1) subsections (a) to (d) shall be re-marked as subsections (b) to (e);

(2) the following subsection shall be inserted before subsection (b):

* Passed by the Knesset on the 7th Tevet, 5744 (13th December, 1983) and published in Sefer Ha-Chukkim No. 1100 of the 14th Tevet, 5744 (20th December 1983), p. 30; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1570 of 5742, p. 91. 1) Dinei Medina! Yisrael (Nusach Chadash) No. 7, p. 173 - NV vol. I, p. 222; Sefer Ha-Chukkim of 5741, p. 315 - LSI vol. XXXV, p. 390.

36 "(a) Where a police officer has reasonable grounds for believing that a person committed one of the offences specified in the Fourth Schedule in his sight, he shall notify a commissioned officer of police of or above the rank of inspector, and such commissioned officer may disqualify such person, by order, from holding a driving licence for a period of thirty days from the day on which the order is delivered to him. The court competent to try the offence may extend the disqualification until the completion of the trial or until it cancels the disqualification.";

(3) in subsection (d), the words "in subsection (a)" shall be replaced by the words "in subsections (a) and (b)".

3. In section 70A of the Ordinance - Amendment of section 70A. (1) in subsection (c), the words "or lock its wheels or part of them with wheel locks preventing its movement" shall be inserted after the words "remove or tow away the vehicle and garage it"; (2) in subsection (d), after the words "the removal and garaging" in the two places in which they occur, there shall be inserted the words "or the locking and unlocking", and the words "or unlocked" shall be inserted after the words "shall not be returned" in the closing passage;

(3) subsection (e) and (f) shall be re-marked as subsections (f) and (g);

(4) the following subsection shall be inserted after subsection (d):

"(e) A vehicle which has been locked as provided in subsection ־(c)

(1) shall be unlocked not later than the expiration of forty-eight hours after its owner asks for its unlocking and pays the fees or makes the payments due from him; but if a day or rest or vacation, or a public holiday, under any enactment (each of these hereinafter referred to as a "day of rest") begins after the first twenty-four hours, the vehicle shall be unlocked before the day of rest;

(2) a commissioned officer of police of or above the rank of inspector may, for reasons of security or safety or to abate a nuisance, direct that a vehicle be unlocked even where the conditions mentioned in this section are not fulfilled."

37 (5) in subsection (f), the words "or unlock it" shall be inserted after the words "from the place where it is garaged".

cation and inquiry committees whose functions shall be - investigation of road accidents. (1) to investigate the causes and circumstances of road accidents in which a person was killed or substantially injured;

(2) to advise, and make suggestions to, the Minister as to anything relating to the preven• tion of road accidents.

(b) The Minister of Transport may, with the consent of the Minister of the Interior and the Minister of Justice, make regulations as to the appointment, activities and powers of the committees.

Amendment of 5. In section 77 of the Ordinance - section 77. (1) in subsection (a) -

(a) paragraphs (3) and (4) shall be re-marked as paragraphs (6) and (7);

(b) the following paragraphs shall be inserted after paragraph (2):

"(3) the measures to be taken in respect of a vehicle parked in a place where the standing thereof is prohibited by enactment, including its removal, towing away and garaging or the locking of its wheels or part uiereof with wheel locks preventing its movement, provided that a vehicle locked as aforesaid -

(a) shall be unlocked not later than the expira• tion of forty-eight hours after its owner asks for its unlocking and pays the fees or makes the

1) Sefer Ha-Chukkim of 5737, p. 226 - LSI Special Series: Penal Law, 5737-1977.

38 payments due from him; but if a day of rest or vacation, or a public holiday, under any enact• ment (each of these hereinafter referred to as a "day of rest" begins after the first twenty-four hours, the vehicle shall be unlocked before the day of rest;

(b) the head of the local authority or a person empowered by him may, for reasons of security or safety or to abate a nuisance, order that the vehicle be unlocked even where the conditions prescribed by this section are not fulfilled;

(4) the obligation of the vehicle owner named in the li• cence of the vehicle to pay fees and make payments for the removal, towing away, garaging or unlocking of the vehicle;

(5) for the purposes of a byelaw under paragraph (3) - empower authorised lowing service operators with the approval of the Head of the Traffic Division of the Israel Police and wardens with the approval of the Inspector- General of the Israel Police or a person empowered by him;";

(2) in subsection (b), the words "subsection (a)(1) or subsection (a)(2)" shall be replaced by the words "subsection (a)".

6. Section 78 of the Ordinance shall be replaced by the following section: Replacement of section 78. "Road Safety 78A. (a) A "Road Safety Administration" (hereinafter Administration. referred to as "the Administration") shall be established at the Ministry of Transport.

(b) The Director of the Administration shall be appointed by the Government upon the proposal of the Minister of Transport. The Minister of Transport shall prescribe the functions and powers of the Director of the Administration.".

7. The foljowing Schedule shall be added after the Third Schedule to the Addition of Ordinance: Fourth Schedule.

39 "Fourth Schedule (Sections 27 and 47)

1. An offence under regulation 22 of the Regulations: non• compliance with stop sign indicating right of way;

2. an offence under regulation 22 of the Regulations: non-compliance with red light;

3. an offence under regulation 47 of the Regulations: dangerous overtaking while crossing unbroken dividing line.".

Transitional 8. The Director of the Administration appointed by resolution of the Gov• provision. ernment before the coming into force of this Law shall be deemed to have been appointed under section 78 of the Ordinance as enacted by this Law.

Validity. 9. Section 27(a)(2) of the Ordinance, as enacted by section 1 of this Law, shall be valid for two years from the date of publication of this Law in Reshumot.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of the State

40 (No. 16)

EMERGENCY REGULATIONS (COMPULSORY PAYMENTS) (EXTENSION OF VALIDITY) LAW, 5744-1983*

1. The validity of the Emergency Regulations (Compulsory Payments), Extension of 5718-19581, is hereby extended until the 30th Sivan, 5744 (30th June, validity. 1984).

2. This Law shall come into force on the 25th Tevet, 5744 (31st Decern- Commencement, ber, 1983).

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of the State

* Passed by the Knesset on the 21st Tevet, 5744 (27th December, 1983) and published in Sefer Ha-Chukkim No. 1101 of the 24lh Tevet, 5744 (30th December, 1983), p. 34; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1652 of 5744, p. 69. 1) Sefer Ha-Chukkim of 5724, p. 175 - LSI vol. XVm. p. 173; Sefer Ha-Chukkim of 5743, p. 22 - LSI vol. XXXVH, p. 23.

41 (No. 17)

WORK SAFETY ORDINANCE (AMENDMENT No. 4) LAW, 5744-1983*

Amendment of 1. In the Work Safety Ordinance (New Version), 5730-19701, the follow- section 150. mg paragraph snau be added at the end of section 150(a):

"(8) upon the demand of any person or persons employed at the work place concerned, appropriate arrangements for the maintenance of the ritual fitness of places for the preparation and eating of meals.".

YITZCHAK SHAMIR AHARON UZAN Prime Minister Minister of Labour and Social Affairs CHAIM HERZOG President of the State

* Passed by the Knesset on the 21st Tevet, 5744 (27th December, 1983) and published in Sefer Ha-Chukkim No. 1101 of the 24th Tevet, 5744 (30th December, 1983), p. 34; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1652 of 5744, p. 88. 1) Dinei Medina! Yisrael (Nusach Chadash) No. 16, p. 337 - NV vol. II, p. 90; LSI vol. XXVDJ, p. 146; Sefer Ha-Chukkim of ־ Sefer Ha-Chukkim of 5734, p. 136 LSI vol. XXXV, p. 332; Sefer Ha-Chukkim of 5742, p. 166 - LSI ־ p. 274 ,5741 vol. XXXVI, p. 179.

42 (No. 18)

EMERGENCY REGULATIONS (JUDEA AND SAMARIA, GAZA REGION, SINAI AND SOUTHERN SINAI — CRIMINAL JURISDICTION AND LEGAL ASSISTANCE) (AMENDMENT AND 5744-1984״ ,EXTENSION OF VALIDITY) LAW

1. The validity of Emergency Regulations (Judea and Samaria, Gaza Re Extension of gion, Sinai and Southern Sinai - Criminal Jurisdiction and Legal Assis validity. tance), 5727-19671 (hereinafter referred to as "the Regulations"), as amended by this Law, is hereby extended until the 19th Shevat, 5746 (31st December, 1985).

2. In the title of the Regulations, and in the definition of "zone" in regula Amendment of title tion 1 thereof, the words "Gaza Region, Sinai and Southern Sinai" shall be and of regulation 1. replaced by the words "and Gaza Region"**

3. The following regulation shall be inserted after regulation 3 of the Reg Addition of ulations: regulation 3A.

"Powers as 3A. (a) Where a person is liable to a tax under any en to taxes. actment, whoever is vested with powers by such enact ment or by any other enactment dealing with the collec tion of such tax may exercise those powers also in a zone.

(b) In this regulation, "tax" has the same meaning as in the Taxes (Collection) Ordinance2 and includes any payment to which that Ordinance applies under any enactment.".

* Passed by the Knesset on the 27th Tevet, 5744 (2nd January, 1984) and published in Sefer Ha-Chukkim No. 1102 of the 29th Tevet, 5744 (4th January, 1984), p. 36; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1656 of 5744, p. 117. 1) Sefer Ha-Chukkim of 5728, p. 20 - LSI vol. XXJJ, p. 20; Sefer Ha-Chukkim of 5741, p. 327 - LSI vol. XXXV, p. 405; Sefer Ha-Chukkim of 5742, p. 18 - LSI vol. XXX Vn, p. 16. ** In the definition of "zone", the English version requires the insertion of the word "the" before the word "Gaza". 2) Laws of Palestine vol. U, p. 1399 (English Edition).

43 Addition of 4. The following regulations shall be inserted after regulation 6A of the Regulation 6B. Regulations:

"Presumption 6B. (a) For the purposes of the enactments enumerated of residence. in the Schedule, the expression "resident in Israel" or any other expression occurring in those enactments denoting residence, living or having one's abode in Israel shall be regarded as including also a person who lives in a zone and is an Israeli national or is entitled to immigrate to Israel under the Law of Return, 5710-19501, and who would come within the scope of such expression if he lived in Israel.

(b) The Minister of Justice may, with the approval of the Constitutional, Legislative and Juridical Com• mittee of the Knesset, vary the Schedule.".

Repeal of 5. Regulation 9 of the Regulations is hereby repealed. regulation 9.

Addition of 6. The following shall be added at the end of the Regulations: Schedule.

"Schedule" (Section 6B)

1. Entry into Israel Law, 5712-19522 2. Defence Service Law (Consolidated Version, 5719-19593 3. Chamber of Advocates Law, 5721-19614 4. Income Tax Ordinance5 5. Population Registry Law, 5725-19656 6. Emergency Labour Service Law, 5727-19677

1) Sefer Ha-Chukkim of 5710, p. 159; LSI vol. IV, p. 114. 2) Sefer Ha-Chukkim of 5712, p. 354; LSI vol. VI, p. 159. 3) Sefer Ha-Chukkim of 5719, p. 286; LSI vol. XJU, p. 328. 4) Sefer Ha-Chukkim of 5721, p. 187; LSI vol. XV, p. 196. 5) Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145. 6) Sefer Ha-Chukkim of 5725, p. 270; LSI vol. XIX, p. 288. 7) Sefer Ha-Chukkim of 5727, p. 86; LSI vol. XXI, p. 300.

44 7. National Insurance Law (Consolidated Version), 5728-19681 8. Psychologists Law, 5737-19772 9. Emergency Regulations (Registration and Mobilisation of Equip• ment) (Continuance in Force) Law, 5741-19813

7. This Law shall have effect from the 26th Tevet, 5744 (1st January, Commencement. 1984).

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5728, p. 108; LSf vol. XXII, p. 114. 2) Sefer Ha-Chukkim of 5737, p. 158; LSI vol. XXXI, p. 195. 3) Sefer Ha-Chukkim of 5741, p. 122; LSI vol. XXXV, p. 131.

45 (No. 19)

STATE COMPTROLLER (AMENDMENT No. 12) LAW, 5744-1983*

Amendment of 1. In section 18(a) of the State Comptroller Law (Consolidated Version), section 18. 5718-19581, the words "The time between terms of the Knesset shall not be included in computing the periods referred to in this subsection," shall be added at the end.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of the State

* Passed by the Knesset on the 22nd Tevet, 5744 (28th December, 1983) and pub• lished in Sefer Ha-Chukkim No. 1102 of the 29th Tevet, 5744, p. 37; the Bill and an Explanatory Note were published in Hatzao't Chok No. 1654 of 5744, p. 111. 1) Sefer Ha-Chukkim of 5718, p. 92 - LSI vol. XJJ, p. 107; Sefer Ha-Chukkim of 5741, p. 280 - LSI vol. XXXV, p. 340.

46 (No. 20)

INCOME TAX (TAXATION UNDER CONDITIONS OF INFLATION) (TEMPORARY PROVISIONS AND AMENDMENT) LAW, ״5744-1984

1. (a) Notwithstanding anything provided in section 20(b) of the Income Purchase price Tax (Taxation under Conditions of Inflation) Law, 5742-19821 (hereinafter of securities acquired while referred to as "the Law"), the purchase price of any shares, or of any options Stock Exchange or other securities convertible into shares, acquired by an assessee-for-the- was closed. purposes-of-that-Law in the period from the 30th Tishri, 5744 (7th October, 1983) until the re-opening of the Tel Aviv Stock Exchange for trading on the 17th Cheshvan, 5744 (24th October, 1983) (hereinafter referred to as "the determining period") shall, for the purpose of calculating the change in their value, be the stock-exchange price of those securities on the day on which transactions therein were first entered into on the Stock Exchange after its said reopening. The amount of the purchase price as aforesaid shall be also the amount of the sale price in the hands of the person who sold the securities to the assessee.

(b) The provisions of subsection (a) shall apply also to the acquisition of securities as aforesaid outside the Stock Exchange on the 27th, 28th or 29th Tishri, 5744 (4th, 5th or 6th October, 1984) unless it is proved to the satisfaction of the Assessing Officer that the transaction was entered into in good faith and without the price being affected by the existence of special relations.

(c) (1) Where securities to which the provisions of this section ap ply have been acquired, the difference between the amount of the cost entered in the books of the business and the amount of the cost determined under this section shall be regarded as a subtraction from the equity capital from the beginning of the month in which the securities were acquired.

* Passed by the Knesset on the 5th Shevat, 5744 (9th January, 1984) and published in Sefer Ha-Chukkim No. 1103 of the 13th Shevat, 5744 (17th January, 1984), p. 40; the Bill and an Explanatory Note were published in Halza'ol Chok No. 1644 of 5744, p. 31. 1) Sefer Ha-Chukkim of 5742, p. 234 - LSI vol. XXXVI, p. 249. Sefer Ha-Chukkim of 5743, p. 82 - LSI vol. XXXVH, p. 89.

47 (2) A difference to which paragraph (1) applies shall, in the hands of a company which acquired the securities from a member, for the purposes of the Ordinance, be regarded as a dividend paid to the member, and the company shall, within thirty days from the date of publication of this Law, transmit to the Assessing Officer the tax which it would have had to deduct at source in respect thereof; the said tax shall to all intents and purposes be regarded as a deduction at source.

(d) For the purposes of this section -

(1) a transfer of securities of an individual from his private ac• count to his business shall be regarded as an acquisition; where any such transfer was effected otherwise than through an authorised dealer, the securities shall be deemed not to have been transferred;

(2) there shall be regarded as the date of acquisition -

(a) in the case of a sale which requires reporting to the Stock Exchange or in respect of which a charge under the Operation Peace-for-Galilee (Financing) Law, 5742-19821 (hereinafter referred to as "the charge") is leviable - the day preceding the day on which the report required under Rule 144 of the Stock Exchange Rules was received by the Stock Exchange or the third business day before the day on which the charge in respect of the sale was trans• ferred to the Assessing Officer, whichever is the earlier;

(b) in the case of a transfer from the private account of an individual to his business - the day on which the per• son effecting the registration of the transfer was directed to effect it.

Amendment of Law. 2. In the Law -

(1) in section 3(b)(5), the following shall be added at the end: "and for the purpose of this paragraph, an investment by a joint investments trust fund in securities dealt with by agreements between the State of Israel and companies referred to in the Notices Concerning Arrangements for the Acquisition of Bank Securities published in Yalkut Ha-Pirsumim No. 2971 of the 16th Cheshvan 5744 (23rd October, 1983), such in• vestment having been made after the signing of the said agreements,

1) Sefer Ha-Chukkim of 5742, p. 180; LSI vol. XXXVI, p. 186.

48 shall be regarded as an investment in State bonds, provided that the pro• portion of the fund's investment in State-issued or State-guaranteed bonds traded on the Stock Exchange shall not be less than 50 per cent of the assets of the fund.";

(2) in section 20 -

(a) in subsection (b)(1), the words "provided that if shall be re• placed by the words "and the following provisions shall apply:

(a) for the purposes of the sale price or the purchase price, where special relations exist between the parties and the transaction was effected outside the Stock Ex• change, the date of the sale or acquisition shall be -

(1) in the case of a sale which requires report• ing to the Stock Exchange or in respect of which a charge under the Operation Peace-for-Galilee (Financing) Law, 5742-1982 (hereinafter referred to as "the charge") is leviable, the day preceding the day on which the report required under Rule 144 of the Stock Exchange Rules was received by the Stock Exchange or the third business day before the day on which the charge in respect of the sale was transferred to the Assessing Officer, whichever is the earlier, unless it is proved to the satisfaction of the Assessing Officer that the transaction was effected at another date;

(2) in the case of a transfer from the private ac• count of an individual to his business or vice versa - the day on which the person carrying out the registration of the transfer received the direc• tion to do so; if; (b)

(b) the following shall be added after subsection (b):

"(c) (1) where, in a transaction to which subparagraph (a) applies, a difference is created between the amount of the cost entered in the books of the business and the amount of the purchase price determined under this section, such difference shall be regarded as a subtraction from the eq• uity capital from the beginning of the month in which the securities were acquired unless the Assessing Officer is satisfied that the price was not affected by lack of good faith or by the existence of special conditions;

(2) a difference to which this subparagraph applies shall, in the hands of a company which acquired the securities from a member, be regarded, for the purposes of the Or• dinance, as a dividend paid to the member.".

Commencement 3. Section 2(1) shall have effect from the 16th Cheshvan, 5744 (23rd Octo• and application. ber, 1983) and section 2(2)(a) shall have effect from the 15th Kislev, 5743 (1st December, 1982). Section 2(2)(b) shall apply in respect of transactions effected after the publication of this Law.

Transitional 4. An assessee who bought or sold outside the Stock Exchange securities as provisions. referred to in section 2, or transferred any such securities from his private ac• count to his business or vice versa, before filing the return under section 131 of the Ordinance for the tax year 1982 or 1983, shall deliver to the Assessing Officer, within thirty days from the date of publication of this Law, a report specifying the said transactions, the date when they were effected, the consid• eration and the name of the person from whom he acquired or to whom he sold the securities and shall amend the return as required in view of the provisions of section 2; and if he has not yet filed the return, he shall furnish the said particulars together with the return.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of the State (No. 21)

NATIONAL INSURANCE (AMENDMENT No. 51) LAW, ״5744-1984

1. In section 139(b) of the National Insurance Law (Consolidated Version), Amendment of 5728-19681 (hereinafter referred to as "the principal Law"), paragraph (1) section 139- shall be replaced by the following paragraph:

"(1) against monetary benefits or any other payment, under this Law or any other law, due from it to the person entitled or to any other person by the right of the person entitled, the following amounts only:

(a) contributions;

(b) advance payments which the person entitled has received on account of the benefit or other payment;

(c) amounts which the Institute has erroneously or improperly paid to the person entitled, plus an addition in accordance with the rate of the excess of the index last published before the date of the set-off of the payment over the index last published before the date when the amount was erroneously or improperly paid.".

2. In section 140 of the principal Law - Amendment of section 140. (1) the opening passage shall be replaced by the following opening passage: "Where the Institute has erroneously or improperly paid a monetary benefit or any other payment under this Law or any other law, the following provisions shall apply:"; (2) paragraph (3) shall be replaced by the following paragraphs:

"(3) the Institute may deduct or claim the amounts paid by it as aforesaid, plus an addition in accordance with the rate of the excess of the index last published before the date of the actual refund of the payment over the index last published before the date when the amount was erroneously or improperly paid;

* Passed by the Knesset on the 26th Shevat, 5744 (30th January, 1984) and pub lished in Sefer Ha-Chukkim No. 1104 of the 3rd Adar Alef, 5744 (6th February, 1984), p. 44; the Bill and an Explanatory Note were published in Halza'ot Chok No. 1644 of 5744, p. 23. 1) Sefer Ha-Chukkim of 5728, p. 108 - LSI vol. XXH, p. 114; Sefer Ha-Chukkim of 5743, p. 154 - LSI vol. XXXVII, p. 181.

51 (4) an amount deducted or received under this section otherwise than in favour of the Institute shall be transmitted by the Institute to the agency which finances the payment.".

Amendment of 3. In section 164 of the principal Law, subsection (c) shall be re-marked as section 164. subsection (d) and the following subsection shall be inserted before it:

"(c) (1) Where the income for any tax year is determined in accordance with the final assessment as aforesaid, and it appears that advance payments were made in an amount smaller than the amount of contributions which the insured person has to pay according to that assessment, the insured person shall pay the balance, plus an addition in accordance with the rate of the excess of the index last published before the date on which the Institute demands the said balance from the insured person over the average index of the financial year in which the advance payments were made.

(2) The Minister shall, by regulations, prescribe times and rules for the payment of amounts under paragraph (1).

(3) Where the insured person does not pay the amount demanded under paragraph (1) at the time prescribed for its payment under paragraph (2), the provisions of section 179 shall apply to that amount.".

Replacement of 4. Section 172 of the principal Law shall be replaced by the following section 172. section:

"Crediting of 172. Payments on account of contributions shall be payments. credited in the following order:

(1) against the outstanding amount of contri• butions the time for the payment of which is the earliest; for the purposes of this paragraph, "contributions" includes the balance together with the addition under section 164;

(2) against the fine under section 179(a)(1) leviable on that amount;

(3) against the addition under section 179(a)(2) leviable on that amount.".

Addition of 5. The following section shall be inserted after section 177 of the principal section 177A. Law:

52 "Power to 177A. The Minister may prescribe by regulations, grant reduction. with the approval of the Labour and Social Affairs Committee of the Knesset, reductions to be granted to a self-employed person, or a person who is neither an em• ployee nor a self-employed person, who pays contribu• tions before the time prescribed for the payment thereof or by way of centralised collection, all at such rates and on such conditions as the Minister may prescribe gener• ally or in respect of particular classes of insured per• sons.".

6. Section 178 of the principal Law shall be replaced by the following Replacement of section: section 178-

"Refund of 178. (a) Where contributions under this Law or moneys

overpayments. under some other law were paid in excess of what was due (such contributions or moneys hereinafter referred to as "overpayments"), the following provisions shall apply:

(1) where the overpayment was collected upon the demand of the Institute, it shall be refunded with an addition in accordance with the excess of the index last published before the day on which it is refunded over the index last published before the day on which it was collected;

(2) where the overpayment was not made upon the demand of the Institute, it shall be refunded with an addition calculated as provided in para• graph (1), but no addition shall be paid in respect of a period in excess of three years;

(3) where advance payments were made for a particular financial year in an amount exceeding the amount of contributions due in respect of that year according to a final assessment, the overpayment shall be refunded with an addition in accordance with the excess of the index last published before the day on which it is refunded over the average index of the financial year in i which the advance payments were made.

53 (b) The Institute shall set off against the payments due to a person entitled to a refund under this section any amounts which that person owes to the Institute under any law.

(c) For the purposes of this section, there shall be regarded as the day of the refund of an overpayment to the person entitled the day on which a cheque is sent to the address given by him or his account with a bank is cred• ited or his debt to the Institute is set off or a sum of money is otherwise placed at his disposal. The Minister may, by regulations, prescribe supplementary provisions in this matter.

(d) The Institute shall notify a person who has made an overpayment of his entitlement to a refund under this section. The Minister may, by regulations, prescribe provisions as to making the notification, as well as cases and circumstances in which the addition to a refunded overpayment shall be calculated in a manner different from that prescribed by subsection (a).

(e) An addition paid under this section shall not be regarded as income for the purposes of the Income Tax Ordinance1 or for the purpose of determining compulsory payments or other charges.".

Replacement of 7. Section 179 of the principal Law shall be replaced by the following section 179. section:

"Payments 179. (a) Where any contributions are not paid at

for delay. ^ 0f- payment) the person owing them shall, in ad• dition thereto, pay -

(1) a fine at the rate of 15 per cent of the over• due amount of contributions per week of delay or fraction thereof; where the delay exceeds ninety days, the fine shall, from the ninety-first day, be three per cent of the overdue amount of contributions per week o! delay or fraction thereof;

1) Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145.

54 (2) from the first of the month following the date of payment - an addition in accordance with the rate of the excess of the index last published before the date of actual payment over the index last published before the due date of payment.

(b) For the purposes of subsection (a), contributions include payments collected by the Institute under another enactment.

(c) A fine and an addition under subsection (a) shall, for the purposes of sections 139, 178, 178A, 183, 215(a) and 234(a), be treated as contributions.".

8. In section 181 of the principal Law - Amendment of section 181. (1) in subsection (c), the words "provided that they shall not exceed sixty months" shall be added at the end; (2) subsection (d) shall be replaced by the following subsection:

"(d) A delay in paying contributions the due date of payment of which is within ninety days immediately preceding the occurrence of the event entitling to a benefit shall not be regarded as a delay for the purposes of subsection (a).".

9. Section 182 of the principal Law is hereby repealed. Repeal of section 182. 10. In section 184 of the principal law - Amendment of section 184. (1) the subsection-mark "(a)" shall be inserted after the Figure "184" and the words "created after the conclusion of the agreement" shali be inserted after the words "the right to a benefit"; (2) the following subsections shall be added after subsection (a):

"(b) Every payment under an agreement as aforesaid shall bear in• terest at a rate prescribed by an order under the Interest (Variation of Rates) Law, 5732-1972' , from the date of the agreement until the date of payment.

(c) Where a person fails to effect in due time two payments, whether consecutive or nonconsecutive, under an agreement con• cluded with him, the Institute may cancel the agreement. If the

1) Sefer Ha-Chukkim of 5733, p. 12; LSI vol XXVTJ, p. 12.

55 agreement is cancelled, it shall be deemed not to have been con• cluded, and the provisions of section 179 shall apply to the over• due contributions.".

Addition of 11. The following section shall be inserted after section 185 of the principal section 185A. Law:

"Waiver. 185A. An employee of the Institute empowered in that behalf by the Board may, on reasoned application, for special reasons justifying it in the circumstances of the case and which shall be recorded, waive, wholly or in part, a fine and an addition under section 179, as well as interest under section 184(b).".

Amendment of 12. In section 194 of the principal Law, subsection (a) shall be deleted. section 194. Amendment of 13. In the Interest (Variation of Rates) Law, 5733-1972, the following Interest (Varia• tion of Rates) Law. paragraph shall be added after paragraph (14) of the First Schedule: "(15) section 184 of the National Insurance Law (Consolidated Ver• sion), 5728-1968".

Amendment of 14. In the Income Tax Ordinance- Income Tax Ordinance. (1) the following paragraph shall be added at the end of section 32:

"(13) payments made as an addition under section 179 of the Na• tional Insurance Law (Consolidated Version), 5728-1968.";

(2) in section 47A, the words "except an addition under section 179(a) of the said Law" shall be inserted after the words "from the amount paid by him".

Commencement. 15. This Law shall come into force on the 28th Adar Bet, 5744 (1st April, 1984) (hereinafter referred to as "the commencement date").

Scope of 16. (a) The provisions of section 3 shall apply to income determined under application. section 164 of the principal Law in respect of the financial year 1984 and subsequent financial years.

(b) The provisions of section 6 shall apply to overpayments collected after the commencement date.

56 17. (a) The provisions of the principal Law as in force before the com- Transitional mencement date shall apply to a contribution debt for periods preceding the provisions, commencement date, and from the commencement date, the provisions of section 7 shall apply to the debts thus created up to the commencement date; for this purpose, where the date of payment is prior to the commencement date, the commencement date shall be deemed to be the date of payment.

(b) The provisions of section 6 shall apply to overpayments collected for periods preceding the date of commencement and not yet refunded, and for this purpose, the commencement date shall be deemed to be the date on which the overpayments were collected; and where the overpayment is a payment as referred to in section 178(a)(3) of the principal Law, the average index of the financial year in which the advance payments were made shall be replaced by the index last published before the commencement date.

(c) The provisions of section 3 shall apply also to a contribution dif• ferential which relates to a financial year preceding the commencement date and which was claimed after the commencement date; for this purpose, the average index of the financial year in which the advance payments were made shall be replaced by the index last published before the commencement date.

YITZCHAK SHAMIR AHARON UZAN Prime Minister Minister of Labour and Social Affairs CHAIM HERZOG President of the State

57 (No. 22)

NATIONAL INSURANCE (AMENDMENT No. 52) LAW, 5744-1984*

Amendment of 1. In section 57 of the National Insurance Law (Consolidated Version), section 57. 1 5728-1968 (hereinafter referred to as "the principal Law"), the following shall be added at the end: "Where the injury benefits were calculated in accor• dance with income which served as basis for the calculation of the contribu• tions for the current year, as provided in section 164, no compensation accruing in that financial year shall be taken into account for the purposes of this section".

Amendment of 2. The following shall be added at the end of section 67(c) of the principal section 67. Law:

"Provided that if the injury benefits were calculated in accordance with income which served as basis for the calculation of the contributions for the current year, as provided in section 164, the period shall begin on the 1st April following the expiration of that year".

Amendment of 3. The following shall be added at the end of section 68C(a) of the princi• section 68C. pal Law: "Where the pension was calculatedin accordance with income which served as basis for the calculation of the contributions for the current year, as provided in section 164, no compensation accruing in that financial year shall be taken into account for the purposes of this subsection.".

Amendment of 4. The following shall be added at the end of section 82C of the principal section 82C. Law

"Where the pension was calculated in accordance with income which served as basis for the calculation of the contributions for the current year, as provided in section 164, no compensation accruing in that year shall be taken into account for the purposes of this subsection.".

* Passed by the Knesset on the 26th Shevat, 5744 (30th January, 1984) and pub• lished in Sefer Ha-Chukkim No. 1104 of the 3rd Adar Alef, 5744 (6th February, 1984), p. 48; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1659 of 5744, p. 129. 1) Sefer Ha-Chukkim of 5728, p. 108 - LSI vol. XXJJ, p. 114; Sefer Ha-Chukkim of 5743, p. 154 - LSI vol. XXXVH, p. . Sefer Ha-Chukkim of 5743, p. 44. - supra, p. .

58 5. The following shall be added at the end of section 101A of the principal Amendment of Law: "Where the maternity allowance was calculated in accordance with in- section 101A. come which served as basis for the calculation of the contributions for the current year, as provided in section 164, no compensation accruing in that financial year shall be taken into account for the purposes of an increase of the maternity allowance.".

6. In section 164 of the principal Law -

(1) in subsection (a), after the words "of the Income Tax Ordinance Amendment of section 164. (New Version)", there shall be inserted the words "(hereinafter referred to as "the Ordinance"), and the words "in the financial year preceding the period of payment" shall be replaced by the words "in the financial year for which the contributions are paid (hereinafter referred to as "the cur• rent year")";

(2) in subsection (b) -

(a) in paragraph (1), the words "Income in the financial year pre• ceding the period of payment" in the opening passage shall be re• placed by the words "The income in the current year", the words "the Income Tax Ordinance (New Version)" shall be replaced by the words "the Ordinance" and the words "Regulations as aforesaid shall prescribe also conditions and rules in accordance with which income, as determined by regulations, of previous financial years shall be carried forward for the purpose of the making of advance payments in the current year" shall be added at the end;

(b) the following paragraph shall be added at the end:

"(3) The Minister may prescribe by regulations -

(a) conditions and rules in accordance with which a self-assessment within the meaning of section 145(a) of the Ordinance (hereinafter re• ferred to as a "self-assessment") shall be regarded as a final assessment;

(b) circumstances under which the income in the current year in accordance with which ad• vance payments are made as provided in para• graph (1) or (2) shall be regarded as income ac• cording to a final assessment.";

(3) subsection (d) shall be re-marked as subsection (e) and the follow• ing subsection shall be inserted before it:

59 (3) subsection (d) shall be re-marked as subsection (e) and the follow• ing subsection shall be inserted before it:

"(d) The provisions of subsection (c) and section 178(a)(3) shall apply also to income determined in respect of a particular financial year according to a self-assessment.".

Commencement 7. (a) Section 6 shall come into force on the 28th Adar Bet, 5744 (1st and scope of April, 1984). application. (b) Sections 1 to 5 shall come into force on the 10th Nisan, 5745 (1st April, 1985).

(c) In the financial year 1984, contributions shall, notwithstanding the provisions of subsection (a), be paid in accordance with an amount equal to 75 per cent of the income determined for that year in accordance with this Law.

(d) The provision of subsection (c) shall apply also for the purpose of the payment of benefits calculated on the basis of the income from which contributions are paid.".

YITZCHAK SHAMIR AHARON UZAN Prime Minister Minister of Labour and Social Affairs CHAIM HERZOG President of the State

60 (No. 23)

MUNICIPALITIES ORDINANCE (AMENDMENT No. 30) LAW, ״5744-1984

1. In section 1 of the Municipalities Ordinance1 (hereinafter referred to as Amendment of "the Ordinance"), the following definition shall be added at the end: section 1.

"pavement" means a part of a street intended for the passage of pedestri ans and includes kerbstones, a retaining wall, steps and supporting walls.".

2. In section 249 of the Ordinance, paragraph (12) shall be replaced by the Amendment of following paragraph: section 249.

"Construction (12) to construct pavements or to require the owners of of pavements. property abutting on any street to carry out the first con struction of a pavement along the street bordering on their property;".

3. The following section shall be inserted after section 251B of the Ordi Addition of nance: section 251C.

"Provisions 251C.(a) In a byelaw under section 249(12), the council as to construction may lay down provisions as to - of payments. (1) the construction of a pavement by way of requiring the owners of property abutting on a street (hereinafter referred to as "the owners") to carry out, at their expense, the first construction of a pavement along the street abutting on their property; or

(2) charging the owners with the whole of the expenses of the construction to be carried out by the municipality: Provided that the owners shall

* Passed by the Knesset on the 26th Shevat, 5744 (30th January, 1984) and pub lished in Sefer Ha-Chukkim No. 1104 of the 3rd Adar Alef, 5744 (6th February, 1984), p. 49; the Bill and an Explanatory Note were published in Halza'ot Chok No. 1653 of 5744, p. 97. 1) Dinei Medina! Yisrael (Nusach Chadash) No. 8, p. 97 - NV vol. I, p. 247; Sefer Ha-Chukkim of 5741, p. 153 - LSI vol. XXXV, p. 167; Sefer Ha-Chukkim of 5742, ^ p. 172 - LSI vol. XXXVI, p. 183; Sefer Ha-Chukkim of 5743, p. 130 - LSI vol. XXX VII, p. 150.

61 not be required to pay more than half of the es timated expenses thereof (the payment so re quired hereinafter referred to as "the construction advance payment") before the commencement of construction; the balance shall be paid upon completion of construction after revaluation of the construction advance payment and the ex penses of construction in accordance with the account submitted by the municipal engineer, or

(3) charging the owners with a pavement con struction charge, to be collected upon the com mencement of construction or upon the issue of a building permit for the property abutting on the street.

(b) Where the municipality does not within one year construct the pavement for which a construction advance payment has been collected, the advance payment shall be deemed to be an overpayment as referred to in section 6 of the Local Authorities (Interest and Linkage Differen tials on Compulsory Payments) Law, 5740-19801.

(c) Where a municipality decides to carry out the con struction of a pavement and to charge the owners with the expenses of construction, it shall notify the owners and give them the choice between making a construction advance payment and paying the whole of the estimated expenses of construction in advance. If the owners pay the whole of the said expenses in advance, they shall not be charged with any additional expenses whatsoever in curred by the municipality in respect of the construction of the pavement.".

YITZCHAK SHAMIR YOSEF BURG Prime Minister Minister of the Interior CHAIM HERZOG President of the State

.LSI vol. XXXIV, p. 47 ־ Sefer Ha-Chukkim of 5740, p. 46 (1 (No. 24)

5744-1984״ ,DAYANIM (AMENDMENT No. 8) LAW

1. In section 4 of the Dayanim Law, 5715-19551 (hereinafter referred to as Amendment "the principal Law"), the words "The two Presidents of the Rabbinical of section 4 Council, who are" shall be deleted.

2. In section 6(a) of the principal Law, the words "two dayanim, to be Amendment elected by the body of dayanim for three years" shall be replaced by the words of section 6. "two dayanim of the Rabbinical Grand Court, to be elected by the body of dayanim thereof for three years".

3. A dayan elected to the Appointments Committee before the coming into Transitional force of this Law shall continue to serve on the Committee until the provision, expiration of the period for which he was elected.

YITZCHAK SHAMIR YOSEF BURG Prime Minister Minister of Religious Affairs CHAIM HERZOG President of the State

* Passed by the Knesset on the the 27th Shevat, 5744 (31st January, 1984) and published in Sefer Ha-Chukkim No. 1104 of the 3rd Adar Alef, 5744 (6th Febru ary, 1984), p. 50; the Bill and an Explanatory Note were published in Hatzao't Chok No. 1645 of 5744, p. 34. 1) Sefer Ha-Chukkim of 5715, p. 68; LSI vol. IX, p. 74; Sefer Ha-Chukkim of 5719, p. 135; LSI vol. XJH, p. 145; Sefer Ha-Chukkim of 5724, p. 140; LSI vol. XVHJ, p. 137; Sefer Ha-Chukkim of 5726, p. 18; LSI vol. XX, p. 13; Sefer Ha-Chukkim of 5729, pp. 41 and 99; LSI vol. XXJH, pp. 47 and 108; Sefer Ha-Chukkim of 5732, p. 41; LSI vol. XXVI, p. 44; Sefer Ha-Chukkim of 5740, p. 94; LSI vol. XXXIV, p. 103.

63 (No. 25)

ADJUDICATION OF INTEREST AND LINKAGE 5744-1984״ ,AMENDMENT No. 4) LAW)

Amendment of 1. In section 1 of the Adjudication of Interest and Linkage Law, 5721-

section 1. 1 1961 (hereinafter referred to as "the principal Law"), in the definition of "linkage differentials and interest", the expression "3 per cent" shall be re placed by the expression "4 per cent".

Amendment of 2. In section 3A of the principal Law- section 3A. (1) in subsection (a), the words "Provided that, under special circum stances and for reasons which shall be recorded, it may adjudicate linkage differentials together with unlinked interest exceeding 4 per cent per an num" shall be added at the end;

(2) subsection (b) shall be deleted;

(3) the following subsection shall be added after subsection (c):

"(d) For the purposes of payments on account of the debt, linkage differentials shall be treated in like manner as the principal.".

Amendment of 3. In section 4 of the principal Law, the following subsection shall be section 4. added after subsection (b):

"(c) Notwithstanding the provision of subsection (a), the rate of inter est adjudicated on an amount payable in a foreign currency or in Israeli currency linked to a foreign currency shall not exceed the rate of interest paid by the Bank of Israel to banking corporations on the moneys of de posits in that currency made with it for a period of three months out of the moneys of deposits of a resident within the meaning of the Currency Control Permit, 5738-19782. Where in the period of interest, within the meaning of section 5(a), the Bank of Israel pays different rates of interest as aforesaid, the adjudicated interest shall be so calculated that for each

* Passed by the Knesset on the 27th Shevat, 5744 (31st January, 1984) and pub lished in Sefer Ha-Chukkim No. 1105 of the 6th Adar Alef, 5744 (9th February, 1984), p. 52; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1549 of 5744, p. 447. 1) Sefer Ha-Chukkim of 5721, p. 192 - LSI vol. XV, p. 214; Sefer Ha-Chukkim 5736, p. 240 - LSI vol. XXX, p. 234; Sefer Ha-Chukkim of 5737, p. 36 - LSI vol. XXXI, p. 45; Sefer Ha-Chukkim of 5739, p. 28 - LSI vol. XXXIU, p. 31. > 2) Kovetz Ha-Takkanot of 5738, p. 1006; Kovetz Ha-Takkanot of 5744, p. 768.

64 three-month period the rate of interest applies which the Bank of Israel pays as aforesaid on the first day of the period.".

4. In section 6(b) of the principal Law, paragraph (3) shall be replaced by Amendment of section 6. the following paragraph:

"(3) Where any enactment prescribes -

(a) a provision as to the payment of linkage differentials or any other relief, except interest, for a delay in payment, or

(b) a provision as to the denial, either complete or partial (in re• spect of the rate or the period), of the payment of linkage differen• tials.".

5. In the Execution Law, 5727-19671 - Amendment of Execution Law. (1) in section 75, the words "principal and linkage differentials" shall be replaced by the words "and principal, including linkage differentials";

(2) in section 81 A, the closing passage, beginning with the words "However, if.. .has been paid" shall be deleted.

6. This Law shall apply also to matters pending on the date of its coming Transitional into force before any judicial authority. provision.

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5727, p. 116 - LSI vol. XXI, p. 112; Sefer Ha-Chukkim of 5740, p. 132 - LSI vol. XXXIV, p. 148.

65 (No. 26)

RULES OF EVIDENCE AMENDMENT (WARNING OF WITNESSES 5744-1984״ ,AND ABOLITION OF OATH) (AMENDMENT) LAW

Amendment of 1. In section 2 of the Rules of Evidence Amendment (Warning of Wit section 2. nesses and Abolition of Oath) Law, 5740-1980' (hereinafter referred to as "the principal Law"), the words "The witness shall reply that he has under stood the warning and that he pledges himself to do so" shall be added at the end.

Amendment of 2. In section 4 of the principal Law, after the words "the Penal Law, 5737- section 4. 1977", there shall be inserted the words "and of the Military Justice Law, 5715-1955"2.

Addition of 3. The following section shall be added after section 5: section 6. Voluntary oath in 6. This Law shall not prevent a person's being sworn matter of foreign for the purposes of any testimony or affidavit if it was evidence. expressly agreed to be sworn and if the sworn testimony or affidavit is required for use abroad.".

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

* Passed by the Knesset on the 3rd Adar Alef, 5744 (6th February, 1984) and pub lished in Sefer Ha-Chukkim No. 1105 of the 6th Adar Alef. 5744 (9th March, 1984), p. 53; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1561 of 5742. p. 62. 1) Sefer Ha-Chukkim of 5740, p. 202; LSI vol. XXXIV, p. 231. 2) Sefer Ha-Chukkim of 5755, p. 171; LSI vol. IX. p. 184.

66 (No. 27)

NATIONAL INSURANCE (AMENDMENT No. 53) LAW, ״5744-1984

1. Section 17A of the National Insurance Law (Consolidated Version), Repeal of

1 section 17A. 5728-1968 (hereinafter referred to as "the principal Law") is hereby repealed.

2. In section 111 of the principal law, in subsections (b) and (c), the ex Amendment of section 111. pression "136(b)" shall be replaced by the expression "136(a)".

3. In section 135 of the principal Law, subsection (b) shall be replaced by Amendment of section 135. the following subsection:

"(b) The provision of subsection (a) shall apply also to a monetary benefit paid through a bank or the Post Office Bank for thirty days from the day on which it is paid; however, the bank or the Post Office Bank may deduct from the benefit any amount it has paid on account of the benefit to the person entitled thereto.".

4. Section 136 of the principal Law shall be replaced by the following Replacement of section 136. section:

"Appointment 136. (a) Where the Institute is satisfied that the person of recipient entitled to a benefit or the person into whose hands a of benefit. benefit should be paid is unable to collect it or that pay ing the benefit into the hands of either of them is not to the advantage of the person entitled or of the person for whom it is paid, the Institute may appoint the person who has the charge or supervision of the person entitled, or some other person; on conditions prescribed by it, to be the recipient of the benefit and may pay to him the whole or part of the benefit, all on such conditions as it may think fit. A decision to appoint a recipient of a ben efit who is not a parent or child of the person entitled

* Passed by the Knesset on the 4th Adar Alef, 5744 (7th February, 1984) and pub lished in Sefer Ha-Chukkim No. 1106 of the 13th Adar Alef, 5744 (16th February, 1984), p. 54; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1643 of 5744, p. 14. 1) Sefer Ha-Chukkim of 5728, p. 108 - LSI vol. XXH, p. 114; Sefer Ha-Chukkim of 5743, p. 154 - LSI vol. XXXVH, p. 181. Sefer Ha-Chukkim of 5744, pp. 44 and 48; supra, pp. 51 and 58.

67 shall require consultation with a rehabilitation officer empowered by the Institute in that behalf.

(b) A person shall not be appointed recipient of a benefit under section (a) unless -

(1) fifteen days' notice has been given to the person entitled to the benefit and, if the benefit has already been paid to a person previously appointed recipient, also to that person, and to the person whom the Institute intends to appoint;

(2) the person whom the Institute intends to appoint has notified it that he accepts the ap• pointment.

(c) When a benefit has been paid to a person ap• pointed under this section, it shall be deemed to have been paid to the person entitled.".

Addition of 5. The following sections shall be inserted after section 136 of the princi- sef°™n6A pal Law: and 136B. "Payment 136A. Where a person is entitled to a dependent's al• to spouse. lowance in respect of a spouse, the Institute may pay the allowance direct to the spouse if the spouse so requests and for such period as he or she requests. Payment to kibbutz 136B. (a) Where the person entitled to a benefit or for

or moshav shitufi. wnom a benefit is paid is a member of a kibbutz or a moshav shitufi (smallholders' collective settlement), the benefit shall, at his request, be paid to the secretariat of the kibbutz or the moshav shitufi, as the case may be.". (b) The provisions of subsection (a) shall apply also to a parent or child of a deceased member if the par• ent or child lives at the kibbutz or moshav shitufi or if he or she is wholly maintained by the kibbutz or moshav shitufi although he may not be living there.".

Replacement of 6. Section 137 of the principal Law shall be replaced by the following section 137. section:

68 "Apportionment of 137. (a) Where a person entitled to a pension is in an entitled whoTs^n institution and a Public body designated by the Minister an institution. by order bears more than half the expenses of his maintenance therein, the pension shall be paid in part to the person entitled and in part to the public body, and if the person entitled has dependants, part of the pension shall be paid to them.

(b) The Minister shall by regulations, with the approval of the Labour and Social Affairs Committee of the Knesset, prescribe rules and conditions for the appor• tionment of the pensions, including the rates of appor• tionment of the different categories of pensions: Provided that the person entitled to the pension shall be paid a part thereof not smaller than an amount equal to 20 per cent of a single person's full pension within the meaning of section 127KK.

(c) The Minister may, by regulations, apply the provisions concerning the apportionment of pensions enacted by him under subsection (b), wholly or in part, with such modifications and on such conditions as he may prescribe, to a person entitled to a pension who is in an institution upon referral by a Government Ministry.".

7. In section 230(a) of the principal Law, the following paragraph shall be Amendment of added after paragraph (6): section 230.

"(7) by a person who considers himself aggrieved by a decision of the Institute under section 136."

8. In section 231(a) of the principal Law, paragraph (6) shall be replaced by Amendment of the following paragraph: section 231.

"(6) a person as referred to in section 230(a)(6) or (7);".

9. This Law shall come into force thirty days from the date of its publica• Commencement. tion.

YITZCHAK SHAMIR AHARON UZAN Prime Minister Minister of Labour and Social Affairs CHAIM HERZOG President of the State

69 (No. 28)

INCOME TAX ORDINANCE (AMENDMENT No. 59), 5744-1984*

Amendment of 1. In section 3(e) of the Income Tax Ordinance1 (hereinafter referred to as

me Ordinance"), the words "to a supplementary training fund" shall be re״ .section 3 placed by the words "to supplementary training funds", after the expression "5717-1957", there shall be inserted the words "(hereinafter referred to as a "collective agreement"), and, in the case of an employee to whom no collec tive agreement applies, within the limits prescribed by a collective agreement applying to an employee whose vocation, length of service and conditions of employment are similar, but not in excess of 8.4 per cent of the determining salary in the case of a teaching worker and not in excess of 7.5 per cent of the determining salary in the case of any other employee", and the following shall be added at the end:

"for this purpose -

"determining income" means work income, other than payments to an em ployee to cover his expenses, overtime pay and payments in respect of a special effort or a particular event, but not more than double the amount forming the ceiling for the purposes of the cost-of-living allowance, fixed from time to time by agreement between the Coordinating Committee of Economic Organisations and the General Federation of Labour in Eretz Israel;

"teaching worker" means a member of one of the following supplementary training funds:

(a) the Teachers' and Kindergartners' Supplementary Training Fund Ltd.;

(b) the Post-Elementary Teachers', Training College Teachers' and Inspec tors' Supplementary Training Fund Ltd.;

* Passed by the Knesset on the 11th Adar Alef, 5744 (14th February, 1984) and published in Sefer Ha-Chukkim No. 1107 of the 20th Adar Alef, 5744 (23rd Febru ary, 1984), p. 56; the Bill and an Explanatory Note were published in Hatza'ol Chok No. 1652 of 5744, p. 82. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120 - NV vol. I, p. 145; Sefer Ha-Chukkim of 5744, p. 19 - supra, p. 4.

70 2. The following shall be added at the end of section 5(1): "For this pur• Amendment of pose - section 5.

(a) "occupation" means any occupation, whether the income therefrom is as specified in section 2(1) or in section 2(2);

(b) an occupation carried on by a person abroad shall not be regarded as dif• ferent from the occupation carried on by him in Israel by reason only that his income from that occupation in Israel is as specified in section 2(1) whereas abroad it is as specified in section 2(2), or vice versa;

(c) a person who carries on abroad the same occupation as in Israel shall, so long as he is a resident of Israel, be regarded as generally carrying it on in Is• rael.".

3. In section 9 of the Ordinance - Amendment of section 9. (1) the following paragraph shall be inserted after paragraph (6E):

"(6F) a survivors' pension payable under Law or collective agreement to which paragraphs (6) and (6C) do not apply (hereafter in this paragraph referred to as "the pension"), of an amount not exceeding an entitling pension within the meaning of section 9A, on condition that the person entitled to the pension has no income under section 2(1), 2(2) or 2(6) and provided that where exemption is due also under section 9A or 9B the higher exemption shall be granted;";

(2) in paragraph (13A), the words "which is not trading stock within the meaning of section 85" shall be added at the end;

(3) in paragraph (16), the words "within the limits of amounts pre• scribed in a collective agreement" shall be deleted;

(4) the following paragraph shall be inserted after paragraph (16):

"Withdrawal (16A) (a) moneys withdrawn by an employee from of employer's his account with a supplementary training fund and de• payments from supplementary rived from payments by an employee to that fund, if six training fund. years have elapsed or, in the case of a male employee who has reached the age of sixty-five years or a female employee who has reached the age of sixty years and in the case of moneys withdrawn by survivors of an em• ployee, if three years have elapsed since the date of the first payment into that account;

71 (b) exemption under this paragraph is subject to the condition that if an employee withdraws any amount from his account, the account shall be closed to further payments; when the account has so been closed, the provisions of subparagraph (a) shall apply to the withdrawal of the balance of the account: Provided that if an amount not exceeding one third of the amount then at the disposal of the account holder is withdrawn for the purpose of supplementary training in Israel, and such withdrawal was not within the last twelve months preceded by another withdrawal of an amount as aforesaid, such firstmentioned withdrawal shall not for the present purpose be regarded as a withdrawal;

(1) the end of the month in which the first payment was made;

(2) the end of the month in respect of which the first payment was made, but not a date pre• ceding the tax year in which it was made;

(d) the Minister of Finance may prescribe by regulations, rules as to the closing of an account to fur• ther payments and as to conditions under which several accounts of an employee with one or more supplemen• tary training funds shall for the purposes of this para• graph be deemed to be one account;".

Amendment of 4. In section 9A of the Ordinance - section 9A. (1) in subsection (a), in the definition of "retirement age" -

(a) the following shall be added at the end of paragraph (1): "or he is entitled to a retirement pension under any law, all on condition that he has no income under section 2(1) or 2(2); for this purpose, the income of a married woman who lives with her husband shall not be regarded as income of the husband";

(b) paragraph (2) to (4) shall be replaced by the following para• graph:

"(2) he has retired early by reason of stable invalidity of a degree of seventy-five per cent or more determined under

72 one of the Laws specified in section 9(5)(a) or under regulations made by virtue of section 9(5)(b);";

(2) the following shall be added at the end of subsection (a):

""Security Forces" means the Permanent Service of the Israel De• fence Forces, the General Security Service, the Intelligence and Special Duties Branch, the Police and the Prison Service;";

(3) in subsection (b), the opening passage, up to the words "is exempt from tax" shall be replaced by the following: "Thirty-five per cent of an entitling pension received by one of the undermentioned is exempt from tax:

(1) a person who has reached retirement age;

(2) a person who belonged to the Security Forces even if he is not regarded as having reached retirement age because he has an income under section 2(1) or 2(2) in the tax year in which he retired from service in the Security Forces or in the following year;

(3) survivors;";

(4) in subsection (e), the following shall be inserted after the words "of the exempted pension": "shall be exempt from tax; any amount which a person who has retired from service in the Security Forces receives in consequence of the capitalisation of a pension payable to him under law which would be exempt from tax by virtue of paragraph (1) of the definition of "retirement age" if he had not an income under section 2(1) or 2(2)".

5. In section 9B of the Ordinance, the words "not being" shall be replaced Amendment of section 9B. by the words "received by a person on reaching retirement age, within the meaning of section 9k(a), or received by survivors and not being".

6. The following shall be added at the end of section 16B of the Ordinance: Amendment of section 16B. "For this purpose, "linkage differentials" includes interest of a total amount not exceeding the amount which would have to be added, under section 159A(a), in accordance with the rise of the consumer price index if the debt or claim had been index-linked during the relevant period".

7. (a) Section 20 of the Ordinance shall be re-marked as section 20(b); Amendment of section 20. paragraph (1), appearing therein, shall be deleted; and paragraphs (2) and (3), appearing therein, shall respectively be re-marked as paragraphs (2) and (3).

73 (b) The following subsection shall be inserted before section 20(b) of the Ordinance:

"(a) The Minister of Finance may, with the approval of the Finance Committee of the Knesset, prescribe rules as to the deduction of all or part of the undermentioned amounts and as to the duration and annual rate of such deduction:

(1) amounts which the owner of a building let, wholly or in part, under a protected lease pays in respect of the vacation of the premises by a protected tenant or as a contribution to the construc• tion of the pavement or road adjacent to, or the drainage connected with, the building, and the like;

(2) amounts paid by a chokher (lessee for a period exceeding five years) of land in respect of the lease or as an investment in or in connection with the land;

(3) amounts expended by an assessee for replanting purposes;

(4) other capital expenses.".

Amendment of 8. In section 67A of the Ordinance, the expression "in section 5(3)" shall section 67A. ^e replaced by the expression "in section 5(1) or (3)", and the words "outside Israel" shall be replaced by the words "outside Israel, to the fact that he was sent out of Israel for the purpose of producing the said income".

Amendment of 9. In section 91(d) of the Ordinance - section 91. (1) in paragraph (1), the words "from the date of receipt of a capital gain, make an advance payment at the rate of 30 per cent thereof shall be replaced by the words "from the date of the sale, make an advance payment at the rate of 40 per cent of the capital gain" and the expression "will not reach 30 per cent" shall be replaced by the expression "will not reach 40 per cent". (2) in paragraph (3), after the words "If the assessee does not make the whole or part of the advance payment", there shall be inserted the words "under paragraph (1) or (2)," the words "an advance payment under para• graph (2)" shall be replaced by the words "an advance payment as afore• said" and the expression "30 per cent" shall be replaced by the expres• sion "40 per cent";

(3) the following paragraph shall be added after paragraph (4):

74 "(5) (a) where an assessee makes an advance payment as provided in paragraph (1) in excess of the amount due from him according to the return filed by him under section 131, the excess amount shall be refunded to him in accordance with the provisions of section 159A(b) with the addition of linkage differentials and interest within the meaning of section 159A(a) for the period from the date of payment to the date of the refund;

(b) the provisions of section 159A(c) and (d) and section 160 shall not apply to a refund under subparagraph (a).".

10. In section 159A of the Ordinance - Amendment of section 159A. (1) in subsection (c), the words "until the expiration of six months from the aforesaid relevant date or until the expiration of the month in which the assessee submitted the return, whichever is later, be made with the addition of interest at the rate of 120 per cent per annum" shall be replaced by the words "until the date of the refund, be made with the addition of linkage differentials and interest";

(2) subsection (d) is hereby repealed and subsection (e) shall be re• marked as subsection (d).

11. In section 187(a)(1) of the Ordinance, the passage beginning with the Amendment of words "with interest at the rate of 15 per cent per annum" and ending with section 187. the words "whichever is less" shall be replaced by the words "for the period from the expiration of that tax year until the date of payment, with linkage differentials and interest within the meaning of section 159A(a), less an amount of 4,000 shekalim".

12. Section 195A of the Ordinance shall be replaced by the following sec• Replacement of tion: section 195A.

"Order of 195A. (a) Where a person pays any amount on appropriation of payments. account of a tax debt, there shall be appropriated to each type of obligation included in that tax debt such part of that amount as bears to the whole thereof the same pro• portion as that type of obligation bears to the whole tax debt; for this purpose -

(1) if the person does not specify whether the amount paid is on account of his debt as an as• sessee or as a person required to deduct tax, the

75 amount shall be appropriated to his debt as a person required to deduct tax;

(2) a tax refund set off under the Tax Set-off Law, 5740-19801, against a tax debt, and an amount collected under the Taxes (Collection) Ordinance2 or otherwise, shall be treated as amounts paid by a person.

(b) (1) Where a person, on paying an amount on account of a tax debt due from him as an assessee, does not specify the year of the debt, such amount shall be appropriated to the tax debts so due from him according to the year in which they were created, beginning with the earliest tax year,

(2) where a person pays any amount on account of a tax debt due from him as a person required to deduct tax, such amount shall be appropriated to the tax debts so due from him in the order in which they were created, beginning with the earliest.

"tax debt" means any of the following:

(1) the aggregate of the amounts of all types of obligation incurred by a person under this Ordinance as an assessee in re• spect of a particular tax year;

(2) the aggregate of the amounts of all types of obligation incurred by a person under this Ordinance as a person required to deduct tax in respect of a particular payment made to another person;

"type of obligation" means any of the fol• lowing: tax, interest, linkage differentials.".

1) Sefer Ha-Chukkim of 5740, p. 50 - LSI vol. XXXIV, p. 51. 2) Laws of Palestine vol. TJ. p. 1299 (English Edition).

76 13. In the Land Appreciation Tax Law, 5723-19631, the following section Amendment of Land Apprecia• shall be inserted after section 94C: tion Tax Law. "Appropriation 94D. (a) Where a person pays any amount on account of of payments. a tax debt, there shall be appropriated to each type of obligation included in that tax debt such part of that amount as bears to the whole thereof the same proportion as the obligations of that type bear to the whole tax debt; for this purpose -

(1) a tax refund set off under the Tax Set-off Law, 5740-1980, against a tax debt, and an amount collected under the Taxes (Collection) Ordinance or otherwise shall be deemed to be an amount paid by a person;

(2) "tax debt" means the aggregate of the amount of all types of obligation incurred by a person in consequence of the sale of a real estate right or a real estate association act;

(3) "type of obligation" means any of the fol• lowing: appreciation tax, acquisition tax, inter• est.".

14. In the Property Tax and Compensation Fund Law, 5721-19612, the Amendment of Property Tax following section shall be inserted after section 33: and Compensation Fund Law. "Appropriation 33 A. (a) Where a person pays any amount on account of of payments. a tax debt, there shall be appropriated to each type of obligation included in that the debt such part of that amount as bears to the whole thereof the same proportion as the obligations of that type bear to the whole tax debt.

(b) Where a person does not specify the year of the debt, the amount shall be appropriated to his tax debts in the region, within the meaning of section 47(b), in which the property is situated, according to the year in which they were created, beginning with the earliest tax year; for this purpose -

1) Sefer Ha-Chukkim of 5723, p. 156 - LSI vol. XXVII, p. 193. 2) Sefer Ha-Chukkim of 5721, p. 100 - LSI vol. XV, p. 101.

77 (1) a tax refund set off under the Tax Set-off Law, 5740-1980, against a tax debt, and an amount collected under the Taxes (Collection) Ordinance or otherwise, shall be treated as an amount paid by a person;

(2) "tax debt" means the aggregate of the amounts of all types of obligation incurred by a person under this Law in respect of a particular tax year with regard to all his property situated in a particular region;

(3) "type of obligation" means tax or interest.".

Amendment of 15. In the Value Added Tax Law, 5736-19751 - Value Added Tax Law (1) in section 96, the words "besides interest and linkage-differentials- and-interest" shall be replaced by the words "besides linkage differentials and interest"; (2) in section 97, the latter portion, beginning with the words "interest at the rate of 15 per cent", shall be replaced by the words "linkage differentials and interest from the expiration of the time of payment", and the marginal note shall henceforth read "Linkage differentials and interest";

(3) the following sections shall be inserted after section 97:

"Adjustment 97A. Where linkage differentials, interest and a fine in of linkage respect of tax arrears are not paid at the time the tax is differentials and interest. paid, they shall, for the purposes of collection and of the addition of linkage differentials and interest to them, be regarded as a tax debt the date for the payment of which is the time when the tax is paid.

Excess refund 97B. For the purpose of collection and for the purpose

of input tax. of tne addition 0f linkage differentials and interest or a fine in case of default, an excess refund of input tax to a dealer shall be treated as tax due from the dealer on the day the excess refund is made.";

(4) in section 98, the words "interest and" in subsections (a) and (b) and the words "Interest and" in the marginal note shall be deleted; \ ־־־ -־.Sefer Ha-Chukkim of 5736, p. 52 - LSI vol. XXX, p. 46 (1

78 (5) in section 100, the words "any fine, interest, linkage-differentials- and-interest" shall be replaced by the words "any fine, linkage-differentials-and-interest" and the words "for interest and linkage-differentials- and-interest" shall be replaced by the words "for linkage-differentials-and- interest";

(6) in section 101, the word "interest" shall be deleted;

(7) section 103 shall be replaced by the following section:

"Appropriation 103. (a) Where a person liable to tax, on paying any of payment to amount on account of several amounts due from him un• earlier debt. der this Law or the Taxes (Arrear Fine) Law, 5741-19811, does not specify for the discharge of which of his said debts the amount paid by him is intended, the payment shall be appropriated to the different types of debt in the following order

(1) tax;

(2) a fine or double tax under this Law, or a fine under the Taxes (Arrear Fine) Law, 5741- 1981;

(3) linkage differentials and interest, including linkage differentials and interest adjusted under section 97A,

and within each type in the order in which the debts were created.

(b) For the purposes of subsection (a), an input tax refund and any other tax refund set off against a debt under this Law or the Tax Set-off Law, 5740-1980, and an amount collected under the Taxes (Collection) Ordi• nance or otherwise shall be treated as an amount which has been paid.";

(8) section 105 shall be re-marked as section 105(a), the words "shall be paid interest and linkage-differentials-and-interest" appearing therein shall be replaced by the words "shall be paid linkage-differentials-and-interest", and the following subsection shall be added after subsection 105(a):

Sefer Ha-Chukkim of 5741, p. 38 - LSI vol. XXXV, p. 39. / "(b) Where linkage differentials and interest payable under subsec• tion (a) are not paid within thirty days from the day on which the surplus is refunded, they shall be regarded as a surplus amount bearing linkage differentials and interest, as provided in section 97 A, from the expiration of the said period.";

(9) in section 106, in the body of the section and in the marginal note, the words "Interest and" shall be deleted.

Amendment of 16. In the Purchase Tax (Goods and Services) Law, 5712-19521 - Purchase Tax (Goods and (1) in section 10A, the figure "97A" shall be inserted after the figure Services) Law. "97";

(2) section 11 shall be replaced by the following section:

"Appropriation 11. The provisions of section 103 of the Value Added

of payments Tax Law 5736-1975, shall apply mutatis mutandis to an to earlier r J debt. amount which a person liable to tax pays on account of several amounts due from him under this Law.".

Amendment of 17. In section 6A of the Indirect Taxes (Overpayments and Underpayments) Indirect Tax Law, 5728-19682, the figure "97" shall be replaced by the figures "97,97A". (Overpayments and Underpayments) Law. Commencement, 18. (a) Section 1 shall apply to the year 1984 and subsequent tax years. application and transitional (b) Section 2 shall come into force on the date of the coming into provisions. force of rules made under section 67A of the Ordinance for the purpose referred to in such section.

(2) section 3(4) shall apply to the tax year 1980 and subsequent tax years;

(d) Sections 4 and 5 shall apply to pensions payable in respect of the tax year 1984 and subsequent tax years.

(e) Section 6 shall apply to interest paid on or after the 18th Nisan, 5743 (1st April, 1984).

1) Sefer Ha-Chukktm of 5712, p. 344 - LSI vol. VI, p. 150. 2) Sefer Ha-Chukkim of 5728, p. 156 - LSI vol. XXH, p. 178.

80 (f) Section 7 shall apply to the tax year 1983 and subsequent tax years.

(g) Section 9 shall apply to sales made on or after the 28th Adar Bet, 5744 (1st April, 1984).

(h) Sections 10 and 11 shall apply to returns and payments for the tax year 1983 and subsequent tax years.

(i) (1) Sections 12, 13 and 14 shall apply to amounts paid on ac• count of a tax debt on or after the 28th Adar Bet, 5744 (1st April, 1984);

(2) for the purposes of sections 12, 13 and 14, amounts of inter• est and linkage differentials accumulated under any law up to the 27th Adar Bet, 5744 (31st March, 1984) in respect of tax paid up to the said day and which are still outstanding on the said day shall, for the purposes of collection and the calculation of linkage differentials and interest, be deemed to be tax the due date of pay• ment of which is the 28th Adar Bet, 5744 (1st April, 1984).

(j) (1) Section 15(2) shall apply to any amount paid after the 28th Nisan, 5744 (30th April, 1984) even if it is paid on account of a debt originating before the said day;

(2) section 15(3) shall, in respect of section 97A and section 16(1), come into force on the 29th Nisan, 5744 (1st May, 1984): Provided that, in respect of linking differentials and interest accu• mulated and not paid by the 28th Nisan, 5744 (30th April, 1984), those sections shall apply from the due date of payment of the tax which was paid out of time;

(3) section 15(3) shall, in respect of section 97B, come into force on the 19th Nisan, 5744 (1st May, 1984): Provided that in respect of an amount overpaid and not refunded by the 28th Nisan, 5744 (30th April, 1984), that section shall apply from the date of the overpayment;

(4) section 15(7) and section 16(2) shall apply to an amount paid after the 25th Nisan, 5744 (30th April, 1984) even if the debt was created before the said day;

(5) section 15(8) shall apply to any excess payment or overpay• ment made after the 28th Nisan, 5744 (30th April, 1984). (k) Section 17 shall apply to any amount paid on account of a defi• ciency after the 28th Nisan, 5744 (30th April, 1984) even if it was due for payment before then.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State (No. 29)

IMPOST ON HIGH-INCOME EARNERS 5744-1984״ ,TEMPORARY PROVISIONS) LAW)

1. In this Law- Interpretation. (1) every term shall have the same meaning as it has in the Income Tax Ordinance1 (hereinafter referred to as "the Ordinance") unless expressly other wise provided in this Law;

(2) "the determining period" means the period from the 1st February, 1984, to the 31st March, 1985;

(3) "income subject to impost" means such part of the chargeable income, other than a capital gain, as -

(a) in respect of the tax year 1983 - is in excess of three million and three hundred thousand shekalim;

(b) in respect of tax years subsequent to the tax year 1983 - is in ex cess of the amount referred to in subparagraph (a) adjusted to the rise of the index under section 120B of the Ordinance as if it were an income ceiling last adjusted on the 1st July, 1983; in respect of parts of periods of assessment, the income subject to an impost shall be such part of the income mentioned in subparagraph (a) or (b), respectively, as bears to the whole of such income the same proportion as the number of months of the part of the accounting period bears to the num ber of months to which the return relates.

2. (a) An individual who in the determining period has an income subject Impost on high- to an impost shall pay an impost at the rate of ten per cent of the tax due ac income earners. cording to the rates of tax applying to him in respect of the income subject to an impost.

(b) Income of a category to which special rates of tax apply shall, for the purpose of its inclusion in the income subject to an impost, but not for the purpose of the rate of tax applying to it, be deemed to be included in the

* Passed by the Knesset on the 11th Adar Alef, 5744 (14th February, 1984) and published in Sefer Ha-Chukkim No. 1107 of the 20th Adar Alef, 5744 (23rd Febru ary, 1984), p. 63; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1651 of 5744, p. 78. 1) Dinei Medina! Yisraet (Nusach Chadash) No. 6, p. 120 - NV vol. I, p. 145.

83 highest bracket of the assessee's income tax scale; where the assessee has categories of income to which different special rates of tax apply, the income the rates of tax on which are the highest shall first be taken into account.

implementation 3. The Minister of Finance is charged with the implementation of this Law

and regulations. ^ may make regUiations for jts implementation.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

84 (No. 30)

PENSION POINTS TAXATION (TEMPORARY PROVISIONS) LAW, 5744-1984*

1. In this Law - Interpretation.

(1) every term shall have the same meaning as it has in the Income Tax Ordinance1 (hereinafter referred to as "the Ordinance") unless other wise expressly provided in this Law;

(2) "the determining period" means the period from the 1st February, 1984, to the 31st March, 1985;

(3) "the determining day" means the day specified hereunder in respect of each part of the determining period mentioned beside it:

(a) the 1st February, 1984, in respect of part of the tax year 1983 or of a special assessment period for the tax year 1984 which began before the said day;

(b) the first day of another special assessment period for the tax year 1984 or 1985, in respect of that assessment period or part thereof, as the case may be;

3. (a) Notwithstanding anything provided in section 116 of the National Income tax on Insurance Law (Consolidated Version), 5728-19682, and section 9B of the pension points Ordinance, where on the determining day an individual is entitled under the Ordinance to pension points in respect of not more than three children, and in the tax year or the special period of assessment to which the determining day relates he has a chargeable income the rate of tax applying to which is 50 per cent or more (hereafter in this section referred to as a "marginal income"), the amounts of the pension points to which he is entitled in respect of the first two children for the periods relating to the determining day shall be regarded as income chargeable with tax: Provided that -

11th Adar Alef, 5744 (14th February, 1984) and׳ Passed by the Knesset on the * published in Sefer Ha-Chukkim No. 1107 of the 20th Adar Alef, 5744 (23rd Febru ary, 1984), p. 64; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1651 of 5744, p. 79. 1) Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120 - NV vol. I, p. 145. 2) Sefer Ha-Chukkim of 5728, p. 108 - LSI vol. XXII, p. 114.

85 (1) income as aforesaid shall not be taken into account for the purpose of any deduction calculated as a proportional part of the chargeable in• come;

(2) where the amount of the marginal income of a person is smaller than the amount of the said pension points, the amount of tax to which he is liable in respect of the pension points shall be equal to the amount of the tax on his marginal income.

(b) Whoever pays, or is responsible for the payment of, work income to a person entitled to pension points which according to subsection (a) are regarded as income shall deduct from the work income paid by him the tax due on the amounts of the pension points as if they were work income paid by him; this provision shall apply also to the State.

(c) Where a person is entitled to pension points to which subsection (a) applies and to which the duty of deduction at source does not apply, there shall be added to his chargeable income for the tax year 1983 or, if he has a special period of assessment for the tax year 1984 which began before the 1st January, 1984, to his chargeable income for the tax year 1983, besides the pension points amount to be added under subsection (a), a pension point ad• justment amount as follows: in respect of each month for which pension points are paid, the pension points amount multiplied by the rate of increase of the index from the index published in the month in question to the index last published before the end of the tax year or before the end of the special period of assessment for the tax year 1983 or 1984, as the case may be.

(d) Where an assessee to whom subsection (a) applies does not include in the return filed by him under section 131 of the Ordinance the pension points regarded as income, the Assessing Officer shall add them to the return, and the return shall be regarded as a self-assessment even after the said addi• tion.

(e) Where subsection (a) applies to an assessee in respect of the tax year 1984 or 1985 and the duty of deduction at source does not apply to the amount of pension points to which he is entitled, then, for the purpose of determining his advance payments, there shall be added to the amount of ad• vance payments to which he is liable -

(1) in respect of the tax year 1984, except a period to which subsection (c) relates, an amount equal to the amount of pension points in respect of each of the first two children for the month beginning in the middle of the period of assessment for the tax year 1983, multiplied by fifteen; (2) in respect of the tax year 1985, such part of an amount equal to the amount of pension points in respect of each of the first two children for the month beginning in the middle of the period of assessment for the tax year 1984. multiplied by fifteen, as bears to the whole of that amount the same proportion as the number of months relating to the said tax year and included in the determining period bear to twelve.

(0 The Commissioner of Income Tax shall publish in Reshumot a notice of the amounts to be added to the amount of the advance payments re ferred to in subsection (e).

3. The Minister of Finance is charged with the implementation of this Law implementation •ons״-and may make regulations for its implementation. and re8ul

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

87 (No. 31)

PENSIONS (COMPENSATION FOR DELAY IN PAYMENT) LAW, ״5744-1984

Definitions. 1. In this Law -

"pension" means a monthly payment made under one of the Laws named in the Schedule;

"grant" means a payment, other than a pension, made under one of the Laws named in the Schedule but does not include a benefit-according-to- income;

"benefit-according-to-income" means a payment made under one of the Laws named in the Schedule and the basis for the calculation of which is the income of the person entided;

"competent authority" means an authority designated by one of the Laws named in the Schedule to consider and decide upon a claim or application for the receipt of a pension or a grant or a benefit-according-to-income;

"updated rate" means the rate of the pension in force in the month pre ceding the date of payment;

"original rate" means the rate of the pension which was in force in the period for which the pension is paid;

"spouse" includes a person known as a spouse among the public;

"average wage" has the same meaning as in the National Insurance Law (Consolidated Version), 5728-19681 (hereinafter referred to as the "National Insurance Law");

"date of claim" means the first day of the month in which the claim or application is actually filed with the competent authority;

"date of payment" means the day on which a cheque is sent to the person entitled at an address given by him or on which his account at a bank is credited or an amount of money is otherwise placed at his disposal;

* Passed by the Knesset on the 11th Adar Alef, 5744 (14th February, 1984) and published in Sefer Ha-Chukkim No. 1107 of the 20th Adar Alef, 5744 (23rd Febru ary, 1984), p. 66; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1589 of 5742, p. 232. 1) Sefer Ha-Chukkim of 5728, p. 108 - LSI vol. XXJJ, p. 114.

88 "average monthly income" means the income of the person entitled and the income of his spouse from the sources specified in section 2 of the Income Tax Ordinance1, during the three months preceding the date of the decision of the competent authority, divided by three.

2. (a) The following provisions shall apply to a pension paid for a period Calculation of between the date of the claim and the date of payment: pension paid out of time. (1) a pension paid within three months from the date of the claim shall be paid at the original rate;

(2) a pension paid more than three months but less than 24 months after the date of the claim shall be paid at the updated rate for the period beginning with the date of the claim and ending with the first of the month in which the date of payment falls;

(3) a pension paid more than 24 months after the date of the claim shall be paid at the updated rate for a period of 24 months from the date of the claim and at the original rate for the remainder of the period.

(b) A pension paid for a period preceding the date of the claim shall be paid at its original rate.

3. (a) (1) Where the person entitled to the pension, being an invalid Calculation of whose degree of invalidity is 50 per cent or more but less than 75 pension in special cases. per cent, has no spouse or children and his average monthly income does not exceed 150 per cent of the average wage or has a spouse or child and his average monthly income does not exceed 200 per cent of the average wage, paragraphs (2) and (3) of section 2(a) shall be read as if the expression "24 months" had, wherever occurring, been replaced by the expression "36 months"; (2) where the person entitled to the pension, being an invalid whose degree of invalidity is 75 per cent or more, meets the condi• tions stated in the preceding paragraph, paragraphs (2) and (3) of section 2(a) shall be read as if the expression "24 months" had, wherever occurring, been replaced by the expression "48 months"; (3) notwithstanding the provisions of paragraphs (1) and (2), the income qualification shall not apply to a person entiUed to a pen• sion by reason of invalidity under the National Insurance Law.

1) Dinei Medina! Yisraei (Nusach Cnaaash) No. 6, p. 120 - NV vol. I, p. 145.

89 (b) The Minister shall prescribe by regulations which average wage shall be brought into account for the purposes of this section if a change occurs in the average wage during the three months according to which the average monthly income is calculated.

(c) For the purposes of this section, "degree of invalidity" means the degree of invalidity determined for a person entitled to a pension in ac• cordance with the Law under which the pension is paid.

Shortening of 4. The competent authority may prescribe that a pension at an updated rate period of as provided in sections 2(a) and 3 shall not be paid or that it shall be paid for compensation. a shorter period than is stated therein if it is satisfied that the claimant caused a delay in the decision on his claim by not delivering to the competent au• thority any information and documents in his possession after being re• quested to do so or by not cooperating with the competent authority in any other manner required for the decision on his claim or for the payment of the pension.

Calculation of 5. Where a grant is not paid within three months from the date of the grant paid out claim, it shall be paid at the rate in force on the date of payment. of time.

Payment to 6. Where a pension or grant is paid at an updated rate under section 2, 3 or be final. 5 and its rate is afterwards changed retroactively, no additional amounts shall be paid in respect thereof in accordance with the calculation set out in section 2, 3 or 5.

Appeal. 7. A decision of the competent authority under this Law shall, for the pur• poses of appeal, be deemed to be a decision given under a Law named in the Schedule.

Inapplicability of 8. The Adjudication of Interest and Linkage Law, 5721-19811, shall not Adjudication of apply to any pension, grant or benefit-according-to-income. Interest and Linkage Law. Implementation 9. (a) The Minister of Finance is charged with the implementation of this and regulations. Law and may make regulations for its implementation.

(b) The Minister charged with the implementation of a Law named in the Schedule may, with the consent of the Minister of Finance and the ap• proval of the Finance Committee of the Knesset, make regulations -

1) Sefer Ha-Chukkim of 5721, p. 197; LSI vol. XV, p. 214.

90 (1) as to the calculation of a pension paid out of time where part thereof has previously been paid to the claimant as an advance or a loan or in any other manner;

(2) as to the payment of compensation, by way of interest or of linkage to the consumer price index or the average wage or in any ;income־other manner, for delay in paying a benefit-according-to

(3) enacting supplementary provisions as to the calculation of the average monthly income and also as to income not to be taken into account for the purposes of calculating an average monthly income;

(4) enacting rules for the payment of compensation for delay in paying any pension, grant or benefit-according-to-income for the receipt of which the filing of a claim is not required;

(5) enacting rules for the payment of compensation for delay in paying any pension, grant or benefit-according-to-income where payment is resumed after an interruption not caused by any act or omission of the person entitled;

(6) enacting rules for the payment of compensation for delay in paying any pension, grant or benefit-according-to-income to a per son to whom the provisions of section 68C(a) or 82C(a) of the National Insurance Law apply.

10. The Minister of Finance may, by order, add a Law to the list of Laws in Widening of scope, the Schedule with the consent of the Minister charged with the implementa tion of that Law and the approval of the Finance Committee of the Knesset.

11. (a) This Law shall apply also where the claim or application for the Application, payment of a pension, grant or benefit-according-to-income was filed with the competent authority before its coming into force.

(b) The provisions of sections 2, 3, 5 and 9(b) shall not apply to any pension, grant or benefit-according-to-income paid before the date of the coming into force of this Law.

12. This Law shall come into force on the 27th Adar Alef, 5744 (1st March, Commencement. 1984).

91 SCHEDULE (Section 1)

(1) Discharged Soldiers (Reinstatement in Employment) Law, 5709-19491;

(2) Fallen Soldiers' Families (Pensions and Rehabilitation) Law, 5710- 19502;

(3) Invalids (War against the Nazis) Law, 5714-19543;

(4) Invalids (Nazi Persecution) Law, 5717-19574;

(5) Invalids (Pensions and Rehabilitation) Law (Consolidated Version), 5719-19595;

(6) National Insurance Law (Consolidated Version), 5728-1968;

(7) Victims of Hostile Action (Pension) Law, 5730-19706;

(8) Maintenance (Assurance of Payment) Law, 5732-19727;

(9) Assurance of Income Law, 5741 -1980s;

(10) Police (Invalids and Fallen) Law, 5741-19819;

(11) Prison Service (Invalids and Fallen) Law, 5741-198110.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5709, p. 13; LSI vol. m, p. 10. 2) Sefer Ha-Chukkim of 5710, p. 162; LSI vol. IV. p. 115. 3) Sefer Ha-Chukkim of 5714, p. 76; LSI vol. VUI, p. 63. 4) Sefer Ha-Chukkim of 5717, p. 103; LSI vol. XI, p. 111. 5) Sefer Ha-Chukkim of 5719, p. 276; LSI vol. XIU, p. 315. 6) Sefer Ha-Chukkim of 5730, p. 126; LSI vol. XXIV, p. 131. 7) Sefer Ha-Chukkim of 5732, p. 87; LSI vol. XXVI, p. 103. 8) Sefer Ha-Chukkim of 5741, p. 30; LSI vol. XXXV, p. 28. 9) Sefer Ha-Chukkim of 5741, p. 163; LSI vol. XXXV, p. 183. 10) Sefer Ha-Chukkim of 5741, p. 65; LSI vol. XXXV, p. 186. (No. 32)

SHORT-TERM LOAN LAW, 5744-1984*

1. The Government is hereby authorised to accept a short-term loan on be• Authorisation half of the State, and to issue bonds for that purpose: Provided that the total to borrow. balance of the loan in circulation shall not exceed 10,000,000,000 shekalim.

2. The bonds shall be registered in a person's name and be issued in series. Series of bonds.

3. The amounts payable under the bonds and all the expenses involved in Payment and security. the implementation of this Law shall be paid out of the general revenue and assets of the State.

4. The Government shall sell bonds to the Bank of Israel only. Original sale to Bank of Israel.

5. The bonds held by the Bank of Israel shall be regarded as a provisional Provisional

1 advance payment. advance payment under section 45 of the Bank of Israel Law, 5714-1954 .

6. The Bank of Israel shall sell bonds to and buy bonds from the public Monetary whenever in the opinion of the Governor of the Bank of Israel it is necessary operations. so to do for an increase or reduction of the means of payment, within the meaning of section 35 of the Bank of Israel Law, 5714-1954, and in order to carry out the functions of the Bank of Israel specified in section 3 of the said Law.

7. (a) The Minister of Finance shall, by regulations, with the approval of Laying down the Finance Committee of the Knesset (hereinafter referred to as "the Com• conditions for classes of series. mittee"), provide for the following matters in respect of each class of bond series:

(1) the period for which the bonds shall be issued and the modes of their redemption;

(2) the price at which the bonds shall be sold to the Bank of Israel or the enablement of the Minister of Finance or a person empowered by

* Passed by the Knesset on the 11th Adar Alef, 5744 (14th February, 1984) and published in Safer Ha-Chukkim No. 1107 of the 20th Adar Alef, 5744 (23rd Febru• ary, 1984), p. 69; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1660 of 5744, p. 137. 1) Sefer Ha-Chukkim of 5714, p. 192; LSI vol. VIE, p. 163.

93 him in that behalf to fix the price within a range of prices; the price may be fixed at or below or above face-value;

(3) the text of the bonds.

(b) The Minister of Finance may by regulations, with the approval of the Committee, prescribe provisions as to the following matters in respect of each series or class of series:

(1) classes of persons who may sell or acquire bonds, including the purposes for which any such class of persons may do so;

(2) exemption from the whole or part of the tax on the difference be• tween the face-value of the bonds and the price at the first sale of the se• ries in question by the Bank of Israel; such provision shall not derogate from the provisions of section 20 of the Income Tax (Taxation under Conditions of Inflation) Law, 5742-19821.

8. (a) The Minister of Finance or a person empowered by him shall de• termine the following in respect of each series:

(1) the class;

(2) the date of issue;

(3) the face-value of the bonds;

(4) the aggregate face-value;

(5) the date of redemption of the bonds;

(6) where the price of the series is fixed within a range of prices, the price so fixed.

(b) Notice of a determination as aforesaid shall be published in Reshumot within twenty-five days from the date of issue of the series.

9. The Minister of Finance may by order, with the approval of the Com• mittee, increase the amount specified in section 1 up to 20,000,000,000 shekalim.

10. The affairs of the loan shall be managed by the Bank of Israel (which in that capacity is hereinafter referred to as "the administration").

1) Sefer Ha-Chukkim of 5742, p. 234; ¿5/ vol. XXXVI, p. 249. 11. (a) The administration shall keep a register in which the names and ad• Register of bonds. dresses of the holders of the bonds and the face-value of the bonds held by them shall be entered.

(b) The register shall be prima facie evidence of everything entered therein.

12. The bonds shall be transferable, subject to any restriction imposed under Transfer of bonds. section 7(b)(1), by a transfer deed signed by the transferor and transferee. The transfer deed shall be delivered to the administration, which shall enter the transfer in the register.

13. Notwithstanding anything provided by this Law, the administration may Acquisition maintain a registration of bonds acquired or transferred without issuing them. without issue of bonds.

14. (a) Notwithstanding the provisions of section 6 of the Operation Exemptions. Peace-for-Galilee (Financing) Law, 5742-19821, the sale of bonds shall be exempt from the impost under Chapter One of the said Law.

(b) The bonds and the transfer thereof shall be exempt from stamp duty.

15. The Minister of Finance is charged with the implementation of this Law Implementation and may make regulations as to any matter relating to its implementation. and regulations.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5742, p. 180; ¿5/ vol. XXXVI, p. 186.

95 (No. 33)

INSURANCE CONTRACT (AMENDMENT) LAW, 5744-1984*

Amendment of 1. In section 2 of the Insurance Contract Law, 5741-19811 (hereinafter re• section 2. ferred to as "the principal Law"), in subsection (b), the words "under section 8 of the Insurance Business (Control) Law, 5711-1951" shall be replaced by the words "under section 16 of the Insurance Business (Control) Law, 5741- 19812, or as submitted or permitted, as the case may be, under section 40 of the said Law".

Amendment of 2. In section 28 of the principal Law - section 28. (1) in subsection (a), the words "from the date of delivery of the claim" shall be replaced by the words "from the date of the occurrence of the event insured against", the expression "three per cent" shall be replaced by the expression "four per cent" and the words "from the said date" shall be replaced by the words "from the date of delivery of the claim"; (2) subsection (b) shall be re-marked as subsection (c) and the follow• ing subsection shall be inserted before it:

"(b) Where the insurance benefits, or part thereof, are calculated according to the value thereof on a date subsequent to the occur• rence of the event insured against, linkage differentials shall be added thereto or to part thereof, as the case may be, from that date only.".

(3) the following subsection shall be added after subsection (c):

"(d) Subsection (a) shall not apply to insurance benefits paid in a foreign currency or in Israeli currency calculated according to the value of a foreign currency. Such benefits shall, from the expira• tion of thirty days from the date of delivery of the claim, have in• terest added to them at the rate paid by the Bank of Israel to bank• ing corporations on moneys of deposits made with it in that cur• rency, for a period of three months, out of moneys of residents' de-

Passed by the Knesset on the 11th Adar Alef, 5744 (14th February, 1984) and published in Sefer Ha-Ckukkim No. 1108 of the 20th Adar Alef, 5744 (23rd Febru• ary, 1984), p. 72; the Bill and an Explanatory Note were published in Halza'ot Chok No. 1599 of 5743, p. 7. 1) Sefer Ha-Chukkim of 5741, p. 94; LSI vol. XXXV, p. 91. 2) Sefer Ha-Chukkim of 5741, p. 208; LSI vol. XXXV, p. 243.

96 posits within the meaning of the Currency Control Permit, 5738- 19781. If, in the period from the expiration of the said thirty days until the date of actual payment, the Bank of Israel pays different rates of interest, the interest shall be so calculated that, in respect of each three-month period, such rate of interest applies as the Bank of Israel pays as aforesaid on the first day of the period.".

3. In section 56 of the principal Law- Amendment of section 56. (1) in subsection (a), the words "The amount of insurance shall vary" shall be replaced by the words "the amount of insurance, other than an amount of insurance expressed in a foreign currency or in Israel currency linked to a foreign currency, shall vary";

(2) subsections (b) and (c) shall respectively be re-marked as subsec• tions (c) and (d) and the following subsection shall be inserted before them:

"(b) No contract shall fix an amount of insurance expressed in a foreign currency or in Israeli currency linked to a foreign currency unless the foreign currency is included in a list of foreign currencies compiled by the Superintendent of Insurance for this purpose.".

4. In section 59 of the principal Law - Amendment of section 59. (1) the closing passage of subsection (c), beginning with the words "and they shall bear" shall be deleted;

(2) the following subsection shall be added after subsection (c):

"(d) The insurers shall bear the burden of obligations inter se in accordance with the ratio of the amounts of insurance.".

5. In section 64 of the principal Law, the figure "59" shall be replaced by Amendment of the expression "59(a) to (c)" and the expression "and 61" shall be replaced by section 64. the expression "61 and 62".

6. In section 67 of the principal Law, the words "and they, except the pro• Amendment of vision of section 59(d), shall not be stipulated against save to the advantage section 67. of the insured person or the third party" shall be added at the end.

1) Kovetz Ha-Takkanol of 5738, p. 1006.

97 Amendment of 7. In section 72 of the principal Law, subsection (a) shall be replaced by section 72. the following subsection:

"(a) (1) The provisions of this Law, except section 62, shall not apply to reinsurance;

(2) The provisions of this Law, except sections 62 and 69, shall not apply to marine insurance and air insurance.".

Commencement. 8. Section 7 shall have effect from the date of the coming into force of the principal Law.

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

98 (No. 34)

EMERGENCY REGULATIONS (TRIAL OF OFFENCES COMMITTED IN LEBANON BY VISITORS FROM ISRAEL) (EXTENSION OF VALIDITY) (AMENDMENT No. 4) LAW, 5744-1984*

1. In section 1 of the Emergency Regulations (Trial of Offences Commit- Amendment of ted in Lebanon by Visitors from Israel) (Extension of Validity) Law, 5743- sectlon 1- 19821 the words "the 26th Adar AM, 5744 (29th February, 1984)" shall be replaced by the words "the 2nd Av, 5744 (31st July, 1984)".

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

* Passed by the Knesset on the 12th Adar Alef, 5744 (15th February, 1984) and published in Sefer Ha-Chukkim No. 1108 of the 20th Adar Alef, 5744 (23rd Febru• ary, 1984), p. 73; the Bill and an Explanatory Note were published in Halza'ot Chok No. 1664 of 5744, p. 155. 1) Sefer Ha-Chukkim of 5743, pp. 6, 56 and 118; ¿5/ vol. XXXVJJ, pp. 3, 57 and 139; Sefer Ha-Chukkim of 5744, p. 10 - supra, p. 14.

99 משיד המשפטים מםמך זה הינו העתק שנסרק בשלמותו ביום ובשעה המצוינים . בסריקה ממוחשבת מהימנה מהמסמך המצוי בתיק, בהתאם לנוהל הבדיקות במשרד המשפטים. על החתום « 9ן 00>0420.0ו40מ3^22 ~~ * משרד המשפטים (התימה מוסדית). (No. 35)

ENCOURAGEMENT OF SAVING, INCOME TAX REDUCTIONS AND GUARANTEE OF LOANS (AMENDMENT No. 5) LAW, 5744-1984*

Amendment 1. In section 5(a)(1) of the Encouragement of Saving, Income Tax Reduc• ofsection 5. tions and Guarantee of Loans Law, 5716-19561, the words "for a term of at least three years" shall be deleted.

Commencement. 2. This Law shall come into force on the date of its adoption by the Knes• set.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

* Passed by the Knesset on the 18th Adar Alef, 5744 (21st February, 1984) and published in Sefer Ha-Chukkim No. 1109 of the 27th Adar Alef, 5744 (1st March, 1984), p. 76; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1668 of 5744, p. 178. 1) Sefer Ha-Chukkim of 5716, p. 52; LSI vol. X, p. 49; Sefer Ha-Chukkim of 5717, p. 156; LSI vol. XI, p. 168; Sefer Ha-Chukkim of 5734, p. 56; LSI vol. XXVIU, p. 51; Sefer Ha-Chukkim of 5735, p. 166; LSI vol. XXIX, p.214; Sefer Ha-Chukkim of 5736, p. 159; LSI vol. XXX, p. 158.

100 (No. 36)

BASIC LAW: JTJDICATURE*

Chapter One: Basic Provisions

1. (a) Judicial power is vested in the following courts**: Judicial power.

(1) the Supreme Court;

(2) a District Court;

(3) a Magistrate's Court;

(4) another court designated by Law as a court.

In this Law, "judge" means a judge of a court as aforesaid.

(b) Judicial power is vested also in the following:

(1) a religious court (beit din);

(2) any other court (beit din):

(3) another authority

all as prescribed by Law.

2. A person vested with judicial power shall not, in judicial matters, be Independence, subject to any authority but that of the Law.

3. A court shall sit in public unless otherwise provided by Law or unless Publicity of the court otherwise directs under Law. proceedings.

* Passed by the Knesset on the 25th Adar Alef, 5744 (28th February, 1984) and published in Sefer Ha-Chukkim No. 1110 of the 4th Adar Bet, 5744 (8th March, 1984), p. 78; the Bill and an Explanatory Note were published in Hatza'oi Chok No. 1348 of 5748, p. 237. '* The Hebrew for "court" is beit mishpat (plural: batei mishpat') or beit din (plural: batei din'). In the translation of this Law, "court" stands for beit mish• pat unless the expression beit din is added in brackets.

101 Chapter Two: Judges

Appointment 4. (a) A judge shall be appointed by the President of the State upon elec of judges. tion by a Judges' Election Committee.

(b) The Committee shall consist of nine members, namely, the Presi dent of the Supreme Court, two other judges of the Supreme Court elected by the body of judges thereof, the Minister of Justice and another Minister designated by the Government, two members of the Knesset elected by the Knesset and two representatives of the Chamber of Advocates elected by the National Council of the Chamber. The Minister of Justice shall be the chairman of the Committee.

Nationality. 5. Only an Israeli national shall be appointed judge.

Declaration of 6. A person appointed judge shall make a declaration of allegiance before allegiance. the President of the State. The declaration shall be as follows: "I pledge my self to be in allegiance to the State of Israel and to its laws, to dispense jus tice fairly, not to pervert the law and to show no favour.".

Period of tenure. 7. The tenure of a judge shall begin upon his declaration of allegiance and ־ shall end only

(1) upon his retirement on pension; or

(2) upon his resignation; or

(3) upon his being elected or appointed to one of the positions the holders of which are debarred from being candidates for the Knesset; or

(4) upon a decision of the Judges' Election Committee prepared by the chairman of the Committee or the President of the Supreme Court and passed by a majority of at least seven members; or

(5) upon a decision of the Court of Discipline.

Retired judge. 8. A judge who has retired on pension may oe appointed to the position of a judge for such time, in such manner and on such conditions as may be pre scribed by Law.

Restriction on 9. (a) A judge shall not be permanently transferred from the locality where re-posting. he is serving to a court in another locality save with the consent of the Pres-

102 ident of the Supreme Court or pursuant to a decision of the Court of Disci• pline.

(b) A judge shall not without his consent be appointed to an acting position at a lower court

10. (a) The salaries of judges and other payments to be made to them dur• Salary and ing or after their period of tenure or to their survivors after their death shall benefits. be prescribed by Law or by a decision of the Knesset or of a Knesset com• mittee empowered by the Knesset in that behalf.

(b) No decision shall be passed reducing the salaries of judges only.

11. A judge shall not engage in an additional occupation, and shall not carry Judge not to out any public function save with the. consent of the President of the engage in addi• tional occupa• Supreme Court and the Minister of Justice. tion, etc.

12. (a) No criminal investigation shall be opened against a judge save with Criminal the consent of the Attorney-General, and no information shall be filed against proceedings. a judge save by the Attorney-General.

(b) A criminal charge against a judge shall not be tried save before a District Court consisting of three judges unless the judge has consented that the charge be tried in the ordinary manner.

13. (a) A judge shall be subject to the jurisdiction of a Court of Disci- Disciplinary pline. proceedings.

(b) A Court of Discipline shall consist of judges and judges retired on pension appointed by the President of the Supreme Court.

(c) Provisions as to the grounds for instituting disciplinary proceed• ings, the modes of filing complaints, the composition of the bench, the powers of the Court of Discipline and the disciplinary measures it shall be authorised to impose shall be prescribed by Law. The rules of procedure shall be in accordance with Law.

14. Where a complaint or information is filed against a judge, the President Suspension, of the Supreme Court may suspend him from office for such period as he may prescribe.

103 Chapter Three: The Courts

Supreme Court. 15. (a) The seat of the Supreme Court is Jerusalem.

(b) The Supreme Court shall hear appeals against judgments and other decisions of the District Courts.

(c) The Supreme Court shall sit also as a High Court of Justice. When so sitting, it shall hear matters in which it deems it necessary to grant relief for the sake of justice and which are not within the jurisdiction of another court (beit mishpat or belt din).

(d) Without prejudice to the generality of the provisions of subsection (c), the Supreme Court sitting as a High Court of Justice shall be com• petent—

(1) to make orders for the release of persons unlawfully detained or imprisoned.

(2) to order State and local authorities and the officials and bodies thereof, and other persons carrying out public functions under law, to do or refrain from doing any act in the lawful exercise of their functions or, if they were improperly elected or appointed, to refrain from acting;

(3) to order courts (batei mishpat and batei din) and bodies and persons having judicial or quasi-judicial powers under law, other than courts dealt with by this Law and other than religious courts (batei din), to hear, refrain from hearing, or continue hearing a particular matter or to void a proceeding improperly taken or a decision improperly given;

(4) to order religious courts (batei din) to hear a particular matter within their jurisdiction or to refrain from hearing or continue hearing a particular matter not within their jurisdiction, provided that the court shall not entertain an application under this paragraph 7 the applicant did not raise the question of jurisdiction at the earliest opportunity; and if he had no measurable opportunity to raise the question of jurisdiction until a decision had been given by a religious court (beit din), the court may quash a proceeding taken or a decision given by the religious court (beit din) without authority.

(e) Other powers of the Supreme Court shall be prescribed by Law.

Other courts. 16. The establishment, powers, places of sitting and areas of jurisdiction of the District Courts, the Magistrates' Courts and other courts shall be in ac• cordance with Law.

104 17. A judgment of a court of first instance, other than a judgment of the Appeal. Supreme Court, shall be appealable as of right.

18. In a matter adjudged by the Supreme Court by a bench of three, a further Further hearing, hearing may be held by a bench of five on such grounds and in such manner as shall be prescribed by Law.

19. In a criminal matter adjudged finally, a retrial may be held on such Retrial, grounds and in such manner as shall be prescribed by Law.

20. (a) A rule laid down by a court shall guide any lower court. Established rule.

(b) A rule laid down by the Supreme Court shall bind any court other than the Supreme Court.

21. A court may have a registrar, who may or may not be a judge. Registrar.

Chapter Four: Miscellaneous Provisions

22. This Law cannot be varied, suspended, or made subject to conditions by Law not to be effected by emergency regulations. emergency regulations. 23. Provisions as to the following matters shall be prescribed by Law: Provisions to be prescribed by Law. (1) the manner of electing, and duration of the tenure of, the members of the Judges' Election Committee;

(2) qualifications for the posts of judges of the various grades;

(3) the manner of appointing the President of the Supreme Court, the Deputy President of the Supreme Court and the President and Vice-pres• ident of a District Court and a Magistrate's Court;

(4) the conditions and procedures for terminating the tenure of a judge;

(5) the manner of appointing a judge to an acting assignment at an• other court and of transferring a judge, temporarily or permanently, from the locality where he is serving to a court in another locality;

(6) proceedings for the suspension of a judge from office, and review of the suspension;

(7) the matters which the courts of the different grades are to hear by a single judge or by three or more judges;

105 (8) the manner of designating the judge or judges who is or are to hear a particular matter.

Provisions to 24. Provisions as to the following matters shall be prescribed under Law: be prescribed under Law. (l) rules as to the administration of the courts, the making thereof and responsibility for their implementing; (2) the rules of procedure of the Judges' Election Committee;

(3) procedure for the resignation of a judge;

(4) procedure for the appointment and the powers of the registrar of a court;

(5) the number of judges who are to serve in the courts of the different grades and location.

CHAIM HERZOG YITZCHAK SHAMIR President of the Stale Prime Minister

106 (No. 37)

JUDICATURE (TRANSITIONAL PROVISIONS) LAW, 5744-1984*

1. Where a court (beit mishpat or belt din)*" was established before the Transitional coming into force of the Basic Law: Judicature1, it and the powers vested in provisions. it shall be deemed to have been established or vested thereunder.

2. In any enactment - Change of titles.

(1) the expression "Permanent Deputy of the President of the Supreme Court" shall, wherever occurring, be replaced by the expression "the Deputy President of the Supreme Court";

(2) the expression/'Relieving President of a District Court" shall, wherever occurring; be replaced by the expression "Vice-President of a District Court";

(3) the expression "Relieving President of a Magistrates' Court" shall, wherever occurring, be replaced by the expression "Vice-President of a Magistrates' Court".

3. In the Courts Law, 5717-19572, sections 1,6,7 and 33 are repealed. Amendment of Courts Law.

4. In the Judges Law, 5713-19533- Amendment of Judges Law. (1) sections 5,11,13,15,18,19,20,23(b), 23A and 24 are repealed;

(2) in section 4A, subsection (a) and the subsection mark "(b)" shall be deleted and the words "Where the candidate for appointment possesses also another nationality" shall be replaced by the words "Where the can-

* Passed by the Knesset on the 25th Adar Alef, 5744 (28th February, 1984) and published in Sefer Ha-Chukkim No. 1110 of the 4th Adar Bet, 5744 (8th March, 1984), p. 82; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1348 of 5738, p. 249. ** The Hebrew for "court" is beit mishpat (plural: batei mishpat ) or beit din (plural: batei din ). In the translation of this Law, "court" stands for beit mish• pat, except where the expression beit din is added in brackets and in the case of the Court of Discipline for Judges (beit din mishma'ti le-shoftim) and the Labour Court (beit din la-'avoda). 1) Sefer Ha-Chukkim of 5744, p. 78; supra, p. 101. 2) Sefer Ha-Chukkim of 5717, p. 148; LSI vol. XI, p. 157; Sefer Ha-Chukkim of 5743, pp. 130 and 149; LSr vol. XXXVII, pp. 150 and 177. 3) Sefer Ha-Chukkim of 5713, p. 149 - LSI vol. VTI, p. 54; Sefer Ha-Chukkim of 5742, p. 196 - LSI vol. XXXVI, p. 207.

107 didate for appointment as a Judge possesses also a nationality other than Israeli nationality";

(3) section 6 shall be replaced by the following section:

"Judges Election 6. The following provisions shall apply for the pur-

Committee. poses of me jucjges Election Committee under section 4 of the Basic Law - Judicature (hereinafter referred to as "the Committee"):

(1) The Knesset shall elect, by secret ballot, the two members of the Knesset who shall serve as members of the Committee; they shall so serve as long as they are members of the Knesset and, if the term of office of the Knesset expires, until the new Knesset elects new members in their stead;

(2) the National council of the Chamber of Advo• cates shall elect its representatives by secret ballot; they shall serve for a period of three years;

(3) the two Judges of the Supreme Court shall serve for a period of three years;

(4) the composition of the Committee shall be published in Reshumot.";

(4) section 21 shall be replaced by the following section:

"Composition 21. (a) The Court of Discipline for Judges (hereinafter of Court of Discipline. referred to as "the Court of Discipline") shall consist of five members, including three Judges of the Supreme Court, or of three members, including two Judges of the Supreme Court as the President of the Supreme Court may prescribe in respect of each case.

(b) The members of the Court of Discipline shall, in respect of each case, be appointed by the President of the Supreme Court upon a decision of the body of Judges thereof.

(c) The President of the Court of Discipline shall be the President or Deputy President of the Supreme Court or the most senior of the other Judges of the Supreme Court (or the oldest of those of equal seniority), according to the composition of the Court of Discipline. (d) For the purposes of this section, "Judge" in• cludes a Judge retired on pension.";

(5) the following section shall be inserted after section 22:

"Disciplinary 22A. The Court of Discipline is competent to im-

mcasures. ^os& ^ f0]iowjng disciplinary measures: an admonition, a warning, a reprimand, transfer to another place of ser• vice and removal from office, either with or without the whole or part of a pension;

(6) section 26 shall be replaced by the following section:

"Criminal 26. The provisions of section 12 of the Basic Law: Ju• risdiction, rjicature shall not apply to an offence designated as a fin• able offence by any enactment.".

5. In the Labour Courts Law, 5729-19691 - Amendment of Labour Courts Law. (1) section 4(a) shall be replaced by the following subsection:

"(a) A Judge shall be appointed by the President of the State upon election by the Judges' Election Committee under section 4(b) of the Basic Law: Judicature: Provided that the members of the Gov• ernment on the Committee shall be the Minister of Justice and the Minister of Labour and Social Affairs.";

(2) section 4(b) shall be re-marked as section 4(c) and the following subsection shall be inserted before it:

"(b) A Judge shall make a declaration of allegiance as provided in section 6 of the Basic Law: Judicature.";

(3) section 8 shall be re-marked as section 8(b), the figure "19" and the closing passage, beginning with the words "Provided that the power", shall be deleted and the following subsection shall be inserted before section 8(b):

"(a) The provisions of sections 5,7, 8,9, 10, 12,13 and 14 of the Basic Law-Judicature shall apply to a Judge.".

1) Sefer Ha-Chukkim of 5729, p. 70; LSI vol. XXUI, p. 76; Sefer Ha-Chukkim of 5741, p. 319; LSI vol. XXXV, p. 397.

109 Commencement. 6. This Law shall come into force on the date of the coming into force of the Basic Law: Judicature.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of the Slate

110 (No. 38)

5744-1984״ ,DEFENCE SERVICE (AMENDMENT No. 16) LAW

1. Section 8 of the Defence Service Law (Consolidated Version), 5719- Amendment of 8־ shall be re-marked as section 8(a) and the following subsection shall sectlon ,19591 be added thereafter

"(b) Subsection (a) shall apply, mutatis mutandis, to a person of mili tary age who, having been found temporarily unfit for service, has been called upon to report for re-examination under section 5 and has not so reported or has so reported but has refused to be examined or to complete the examinations.".

YITZCHAK SHAMIR MOSHE ARENS Prime Minister Minister of Defence CHAIM HERZOG President of the State

* Passed by the Knesset on the 26th Adar Alef, 5744 (29th February, 1984) and published in Sefer Ha-Chukkim No. 1110 of the 4th Adar Bet, 5744 (8th March, 1984), p. 84; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1626 of 5743, p. 172. 1) Sefer Ha-Chukkim of 5719, p. 286; LSI vol. XUI, p. 328; Sefer Ha-Chukkim of 5743, p. 152; LSI vol. XXXVJJ, p. 180.

Ill (No. 39)

PARALLEL TAX (AMENDMENT No. 6) LAW, 5744-1984*

Amendment of 1. In section 1 of the Parallel Tax Law, 5733-19731 (hereinafter referred to section 1- as "the principal Law")-

(1) in the definition of "income", the words "under the Insurance Law" shall be replaced by the words "and, in the case of a person other than an employee, means the income from which he is liable to pay National Insurance contributions";

(2) the following definitions shall be inserted after the definition of "income":

"self-employed person" has the same meaning as in section 1 of the Insurance Law;

"National Insurance contributions" means any contribution whatsoever under the Insurance Law:"

Replacement of 2. Section 2 of the principal Law shall be replaced by the following section 2. section:

"Duty to pay 2. (a) An employer shall, for every one of his em- parallel tax. ployees who is a resident of Israel and for whom he is li• able to pay National Insurance contributions, pay parallel tax at the rate of 4.95 per cent of the income of the em• ployee.

(b) A self-employed person who is a resident of Israel and who is liable to pay National Insurance con• tributions for himself shall pay parallel tax for himself at the rate of 4.95 per cent of his income.

(c) An employee who is a resident of Israel and whose employer is not liable to pay National Insurance contributions for him but who is liable to pay National

* Passed by the Knesset on the 2nd Adar Bet, 5744 (6th March, 1984) and pub• lished in Sefer Ha-Chukkim No. 1111 of the 11th Adar Bet, 5744 (15th March, 1984), p. 86; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1659 of 5744, p. 133. 1) Sefer Ha-Chukkim of 5733, p. 88; LSI vol. XXVTI, p. 83; Sefer Ha-Chukkim of 5740, p. 124; LSI vol. XXXIV, p. 142.

112 Insurance contributions for himself shall pay parallel tax for himself at the rate of 4.95 per cent of his income.

(d) A resident of Israel over eighteen years of age who is neither an employee nor a self-employed person and who is liable to pay National Insurance contributions for himself - other than a person insured by the Institute at his request - shall pay parallel tax for himself at the rate of 3.1 per cent of his income or at a reduced rate pre• scribed by regulations with the approval of the Labour and Social Affairs Committee of the Knesset.

(e) In the case of a household employee, the Min• ister of Labour and Social Affairs may, with the approval of the Labour and Social Affairs Committee of the Knesset, prescribe a reduced parallel tax at such rates and according to such modes of calculation as shall be pre• scribed by regulations, instead of tax at the rate stated in subsection (a).

(f) The provisions of this Law shall not affect the obligation of an employer to pay parallel tax for a former employee entitled to a retirement pension.

(g) The provisions of the Insurance Law shall ap• ply, mutatis mutandis, to parallel tax as if it were Na• tional Insurance contributions. The Minister of Labour and Social Affairs may, by regulations, prescribe provi• sions as to parallel tax in like manner as he may, under the Insurance Law, prescribe provisions as to National Insurance contributions: Provided that the part of the in• come fixed for the purposes of reduced rates of parallel tax shall not exceed the part of the income fixed for the purposes of reduced rates of National Insurance contribu• tions under section 160A of the Insurance Law.".

3. The following sections shall be inserted after section 2 of the principal Addition of Law sections 2A and 2B.

"Special 2A. The Minister of Labour and Social Affairs may, by provisions. regulations, prescribe special provisions as to the duty to pay parallel tax for a resident of Israel over eighteen years of age to whom section 2(a) to (d) does not apply and for whom National Insurance contributions are paid: Pro-

113 r

vided that regulations in respect of a person to whom section 192 of the Insurance Law applies shall be made with the consent of the Minister of Finance.

Collection by 2B. Nothing in this Law shall affect the right of a sick- sick-fund. fund to collect parallel tax under its rules from a member to whom the provisions of sections 2 and 2A do not ap• ply.".

Addition of 4. The following section shall be inserted after section 5 of the principal section SA. Law:

"Non-member 5A. (a) Where a resident of Israel who is not a member of sick-fund. of a sick-fund has paid parallel tax for himself under sec• tion 2 or 2A, the Institute shall refund the parallel tax to him at such times, according to such rules and on such conditions as the Minister of Labour and Social Affairs shall prescribe by regulations.

(b) The Minister of Labour and Social Affairs may, in consultation with the Minister of Finance and with the approval of the Labour and Social Affairs Committee of the Knesset, prescribe rules and conditions as to exemption from parallel tax in the case of a resident of Israel who is not a member of a sick-fund and to whom the provisions of section 2(b) to (d) or 2A apply.

(c) The Minister of Labour and Social Affairs may prescribe rules for the settlement of accounts with sick- funds concerning amounts apportioned among them under section 6 which have to be refunded under subsection (a).".

Amendment of 5. In section 7 of the principal Law, the following subsection shall be section 7. added after subsection (b):

"(c) A person liable to pay National Insurance contributions for himself or for another, and a person for whom National Insurance contributions are payable shall, in accordance with rules prescribed by regulations, supply his employer or the Institute, on his or its demand, with any data required for the purposes of this Law.".

Amendment of 6. The following subsection shall be added at the end of section 8 of the section 8. principal Law:

114 "(c) The provisions of this section shall apply also, mutatis mutandis, to a self-employed person.".

7. In section 9 of the principal Law- Amendment of section 9. (1) the marginal note shall henceforth read "Person for whom no tax has been paid.";

(2) the subsection-mark "(a)" shall be inserted after the figure "9" and the following subsections shall be added:

"(b) The provisions of subsection (a) shall apply also, mutatis mutandis, to a sick-fund member liable to pay parallel tax for himself unless the payment of the tax is overdue for a period ex• ceeding twelve months.

(c) (1) Where a person liable to pay parallel tax for himself is in arrears for a period exceeding twelve months, he shall not be entitled to a service given to members of a sick-fund who pay parallel tax, unless he discharges his debt in a single payment before receiving the service or in such manner as the Minister of Labour and Social Affairs shall prescribe by regulations.

(2) Notwithstanding the provisions of section 184 of the Insurance Law, where a payments agreement is made between the Institute and a person in arrears with parallel tax as stated in paragraph (1), and it appears that in a period of three months from the making of the agreement he requires a service given to members of a sick-fund who pay parallel tax, then, for the purposes of his rights, he shall be deemed to be in arrears for a period exceeding twelve months unless he discharges the balance of his debt in a single payment before receiving the service or in such manner as the Minister of Labour and Social Affairs shall prescribe by regulations.".

8. In section 14(c) of the principal Law, the words "and representatives of Amendment of employers" shall be replaced by the words "representatives of employers", section 14. and after the words "are representative" there shall be inserted the words "and representatives of self-employed persons appointed after consultation with organisations which in the opinion of the Minister represent self-employed persons".

9. This Law shall come into force on the 28th Adar Bet, 5744 (1st April, Commencement. 1984).

115 Transitional 10. (a) For the purposes of section 9(b) and (c) of the principal Law, a de• provisions. lay in paying parallel tax for a period preceding the 5th Tishri, 5745 (1st October, 1984) shall not be taken into account.

(b) The provisions of this Law shall not exempt a member of a sick- fund liable to pay parallel tax for himself from the duty to pay the tax for a period preceding the date of the coming into force of this Law and shall not affect the right of a sick-fund to collect a parallel-tax debt for any such pe• riod.

(c) The Minister of Labour and Social Affairs may prescribe rules and methods for calculating the amounts to be transferred to the sick-funds in re• spect of the collection of amounts of parallel tax from persons liable to pay it for themselves and the mode of apportioning these amounts among the sick-funds in the financial year 1984; rules as aforesaid shall apply notwith• standing anything provided in section 6(a) of the principal Law and in rules prescribed thereunder.

YITZCHAK SHAMIR AHARON UZAN Prime Minister Minister of Labour and Social Affairs CHAIM HERZOG President of the State

116 (No. 40)

5744-1984״ ,AERODROMES AUTHORITY (AMENDMENT) LAW

1. In the Aerodromes Authority Law, 5737-19771, the following paragraph Amendment of 5־ shall be added at the end of section 5: section

"(4) to render, at a military aerodrome, other than an aerodrome of the Authority, such services as the Minister of Transport may direct by or der in consultation with the Council of the Authority and with the ap proval of the Minister of Defence; the provisions of this Law specified in the order shall apply to the rendering of the services; an order as aforesaid shall be brought to the knowledge of the Economic Committee of the Knesset.".

YITZCHAK SHAMIR HAIM CORFU Prime Minister Minister of Transport CHAIM HERZOG President of the State

* Passed by the Knesset on the 2nd Adar Bet, 5744 (6th March, 1984) and pub lished in Sefer Ha-Chukkim No. 1111 of the 11th Adar Bet, 5744 (15th March. 1984), p. 88; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1663 of 5744, p. 153. 1) Sefer Ha-Chukkim of 5737, p. 182; ¿5/ vol. XXXI, p. 228.

117 (No. 41)

ACQUISITION FOR PUBLIC PURPOSES (AMENDMENT OF PROVISIONS) (AMENDMENT No. 5) LAW, 5744-1984*

Amendment of 1. In section 9 of the Acquisition for Public Purposes (Amendment of section 9. Provisions) Law, 5724-19641 (hereinafter referred to as "the principal Law"), the expression "the 17th Nisan, 5743 (31st March, 1983)" shall be replaced by the expression "the 9th Nisan, 5745 (31st March, 1985)".

Transitional 2. The owner of any rights to whom compensation was paid under section provisions. 8 of the principal Law after the 17th Nisan, 5743 (31st March, 1983) and before the date of publication of this Law shall be paid an additional amount as if section 1 had come into force on the said day with the addition of link• age differentials and interest under the said section 8 from the day on which the compensation was paid to him until the date of the actual payment of the additional amount.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

Passed by the Knesset on the 8th Adar Bet, 5744 (12th March, 1984) and pub• lished in Sefer Ha-Chukkim No. 1112 of the 17th Adar.Bet, 5744 (21st March, 1984), p. 90; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1667 of 5744. p. 173. Sefer Ha-Chukkim of 5724, p. 122; LSI vol. XVH, p. 116; Sefer Ha-Chukkim of 5741, p. 124; LSI vol. XXXV, p. 132.

118 (No. 42)

5744-1984״ ,PRISONS ORDINANCE (AMENDMENT No. 7) LAW

1. In the Prisons Ordinance (New Version), 5732-19711, section 64 shall Replacement of section 64 and be replaced by the following section: addition of section 64A. "Early discharge 64. (a) A prisoner entitled to be discharged on any of by reason of days the days of rest prescribed in the State of Israel, within of rest. the meaning of section 18A(a) of the Law and Adminis tration Ordinance, 5708-19482, or on a public holiday under any Law shall be discharged on the preceding day or, if it, too, is a day of rest or a public holiday as afore said, on the day before.

(b) A non-Jewish prisoner entitled to be released on a day of rest or public holiday as referred to in subsection (a) or on his own Sabbath or one of his festival days determined under section 18A(a) of the Law and Administration Ordinance, 5708-1948, shall be released on the preceding day or, if it, too, is one of the aforesaid days, on the day before.

Time of discharge. 64 A. A person shall be discharged not later than noon on the day on which he is entided to be discharged.".

YITZCHAK SHAMIR YOSEFBURG Prime Minister Minister of the Interior CHAIM HERZOG President of the State

* Passed by the Knesset on the 10th Adar Bet, S744 (14th March, 1984) and pub lished in Sefer Ha-Chukkim No. 1112 of the 17th Adar Bet, 5744 (21st March, 1984), p. 90; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1667 of 5744, p. 175. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 21, p. 459; NV vol. H, p. 237; Se fer Ha-Chukkim of 5742, p. 201; LSI vol. XXXVI, p. 214. 2) I.R, of 5708, Suppl. I, p. 1; LSI vol. I, p. 7.

119 (No. 43)

5744-1984״ ,FOREIGN TRAVEL CHARGE (AMENDMENT) LAW

Amendment of 1. In section 1 of the Foreign Travel Charge Law, 5743-19831 (hereinafter section 1. referred to as "the principal Law"), the figure "2,100" shall be replaced by the figure "14,500".

Amendment of 2. In section 2 of the principal Law - section 2. (1) in subsection (a), the expression "the 16th" shall be replaced by the expression "the 17th";

(2) in subsection (c), in the definition of "rate of exchange", the words "published by the Bank of Israel" shall be added at the end.

Amendment of 3. In section 3 of the principal Law - section 3. (1) in subsection (b), the words "with the approval of the Finance Committee of the Knesset" shall be added at the end;

(2) in subsection (c), the words "or at a different rate prescribed by the Minister of Finance with the approval of the Finance Committee of the Knesset" shall be added at the end.

Amendment of 4. In section 4(a) of the principal Law - section 4. (1) in paragraph (1), the words "travelling on duty" shall be replaced by the words "carrying out any function in the aircraft or vessel in which he is travelling, except a crew member as aforesaid in a private means of transport". (2) in paragraph (2), the words "or on a visa and permit of temporary residence of the A/2 (student) category" shall be added at the end;

(3) in paragraph (3), the word "diplomat" shall be replaced by the words "diplomatic or consular representative" and the words "all if they are foreign nationals, as well as their spouses and children" shall be added at the end;

* Passed by the Knesset on the 17th Adar Bet, 5744 (21st March, 1984) and pub lished in Sefer Ha-Chukkim No. 1113 of the 26th Adar Bet, 5744 (30th March, 1984), p. 92; the Bill and an Explanatory Note were published in Hatza'ol Chok No. 1669 of 5744, p. 180. 1) Sefer Ha-Chukkim of 5743, p. 60; LSI vol. XXXVH, p. 62.

120 (4) the following shall be added at the end:

"(5) a clergyman who is in Israel on a visa and permit of tempo rary residence of the A/3 category;

(6) a child under two years of age;

(7) a non-resident child under eighteen years of age; for this pur pose, "non-resident child" means a child whose passport shows him to be a non-resident or who is included in the passport of one of his parents or their joint passport, at least one of them being a non resident.".

5. The following section shall be inserted after section 4 of the principal Addition of section 4A. Law:

"Refund of charge. 4A. Where a person, having paid a charge, cancels the journey in respect of which he paid it, the amount of the charge shall on his application be refunded. Where the amount is refunded after the expiration of thirty days from the date of its payment, interest shall be added to it at the rate of 156 per cent per annum from the day fol lowing the thirty days to the day on which the refund cheque is issued.".

6. In section 5 of the principal Law, the words "A person empowered in Amendment of that behalf by the Director of the Department of Customs and Excise" shall section 5. be replaced by the words "The Director of Customs and Value Added Tax or a person empowered by him in that behalf.

7. The following section shall be inserted after section 6 of the principal Addition of Law: section 6A.

־ Penalties. 6A. A person who"

(1) contravenes the provision of section 3(b) or

(2) delivers false information with intent to evade, or to assist in evading, the payment of the charge or to obtain a refund not due to him

shall be liable to imprisonment for a term of one year.".

121 Amendment of 8. In the Interest (Variation of Rates) Law, 5733-19721, the following Interest (Variation shall be added at the end of the First Schedule: of Rates) Law. "(15) section 4A of the Foreign Travel Charge Law, 5744-1983.".

Scope of 9. This Law shall apply to a journey which takes place on or after the application and fourth day following the date of the adoption of this Law by the Knesset. transitional provision. Where a person paid a charge before the said day but the journey in respect of which it was paid has not taken place by the day preceding that day shall have to make an additional payment of an amount equal to half the amount of the charge in force on the day of the additional payment.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance

MENAHEM SAVIDOR Chairman of the Knesset Acting President of the State

1) Sefer Ha-Chukkim of 5733, p. 12; LSI vol. XXVH, p. 12.

122 (No. 44)

PUBLIC HEALTH ORDINANCE (AMENDMENT No. 9) LAW, ״5744-1984

1. In section 65C of the Public Health Ordinance, 19401 - Amendment of section 6SC. (1) in subsection (1) -

(a) in the opening passage, the words "by regulations prescribe" shall be replaced by the words "after consultation with the Israel Medical Association prescribe by regulations";

(b) the following paragraphs shall be inserted after paragraph (a):

"(al) the imposition of the duty of registering -

(1) clinics of particular categories, other than clin ics of a sick-fund;

(2) the private office of a physician, or of physi cians, in which specified surgical operations, anes- thetisation, catheterisation, artificial insemination, or medical operations ancillary thereto, are carried out;

"(a2) the conditions to be met in clinics for the purpose of providing medical services or medical treatment of particular kinds;";

(2) in subsection (3) -

(a) in the definition of "clinic", the words "a place intended for" shall be replaced by the words "a place other than a hospital, requiring registration under this Ordinance, or part of such a place, / intended for" and the words "all on an ambulatory basis" shall be deleted;

* Passed by the Knesset on the 17th Adar Bet, 5744 (21st March, 1984) and pub lished in Sefer Ha-Chukkim No. 1113 of the 26th Adar Bet, 5744 (30th March, 1984), p. 93; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1655 of 5744, p. 115. 1) P.G. of 1940, Suppl. I, p. 239 (English Edition).

123

/ (b) the following definition shall be added at the end:

"sick-fund" has the same meaning as in the Parallel Tax Law, 5733-19731.

YITZCHAK SHAMIR ELIEZER SHOSTAK Prime Minister Minister of Health

MENAHEM SAVIDOR Chairman of the Knesset Acting President of the State

1) Sefer Ha-Chukkim of 5733, p. 88; LSI vol. XXVTI, p. 83. (No. 45)

5744-1984״ ,OBSOLETE LEGISLATION (REPEAL) LAW

1. A law or provision of law mentioned in the Schedule shall cease to have Repeal, effect on the date of publication of this Law or, if a different date is given for it in the Schedule, as of that date.

2. (a) Section 1 shall not be construed as abrogating - interpretation.

(1) the validation of a legislative act by a law which is repealed;

(2) a legislative act done by virtue of the Order in Council;

(3) rights conferred by, or by virtue of, a law which is repealed;

(4) judgments and administrative directions given or issued by virtue of a law which is repealed.

(b) Section 1 shall not bar the plea that -

(1) a law which is repealed had no effect or ceased to have effect before the date fixed by this Law;

(2) any other laws - including provisions not repealed by this Law of laws mentioned in the Schedule - have not been confirmed by section 11 of the Law and Administration Ordinance, 5708-19481, or have ceased to have effect by virtue of any other law.

(c) In this section, "law which is repealed" means a law or provision of law which ceases to have effect by virtue of section 1.

3. The Palestine (Western or Wailing Wall) Order in Palestine Council, Nullification of the 19312, has not and has never had any effect. Palestine (Western J or Wailing Wall) . Order in Council.

* Passed by the Knesset on the 23rd Adar Bet, 5744 (27th March, 1984) and pub lished in Sefer Ha-Chukkim No. 1113 of the 26th Adar Bet, 5744 (30th March, 1984), p. 94; the Bill and an Explanatory Note were published in Uatia'ol Chok No. 1503 of 5741, p. 131. 1) I.R. of 5708, Suppl. I, p. 1; LSI vol. I, p. 7. 2) Laws of Palestine vol. m, p. 2635 (English Edition).

125 Supplementary 4. (a) In the Palestine Order in Council, 1922-19471 - amendments. (1) in article 11(2), the words "by any such Proclamation" shall be replaced by the words "by a decision of the Government";

(2) in article 64 (iii), in the second sentence, the words "other than British subjects" shall be deleted;

(3) in article 64 (iii), in the second sentence, the words "the British President or British Relieving President, as the case may be" shall be replaced by the words "the Court".

(b) Paragraphs (1) and (2) of subsection (a) shall have effect from the 5th Iyar, 5708 (14th May, 1948); paragraph (3) of subsection (a) shall have effect from the 23rd Sivan, 5708 (30th June, 1948).

SCHEDULE (Section 1)

Date of Cessation of Effect

1. Ottoman Temporary Law of Magistrates of 1329 H

2. Ottoman Law of Medical Examinations at Customs Houses of the 29th Rabi ul-Awal, 1323 (1905)

3. Palestine Order in Council, 1922-1947 —

(1) Articles 4 to 8 5th Iyar, 5708 (14th May, 1948) (2) Article 10 5th Iyar, 5708 (14th May, 1948) (3) Article 11(1) 5th Iyar, 5708 (14th May, 1948) (4) Article 16 18th Shevat, 5709 (17th February, 1949)

1) Laws of Palestine vol. HI, p. 2S69 (English Edition).

126 :5) Article 16A 23rdTevet, 5730 (1st January, 1970) Article 16B (6׳

7) Article 16C 25th Av, 5720 (18th Aguust, 1960) 8) Article 16D 5th Iyar, 5708 (14th May, 1948) [9) Article 16E 9th Av, 5719 (13th August, 1959) :10) Article 17 5th Iyar, 5708 (14th May, 1948) 11) Articles 35 to 37

12) Article 53(i) and (ii) 24th Elul, 5713 (4th September, 1953) 13) Article 57 5th Iyar, 5708 (14th May, 1948) 14) Article 64 (iii), first sentence 5th Iyar, 5708 (14th May, 1948) 15) Article 65A 5th Iyar, 5708 (14th May, 1948) 16) Articles 67 to 81 5th Iyar, 5708 (14th May, 1948) 17) Articles 85 to 90 5th Iyar, 5708 (14th May, 1948) 18) First Schedule 5th Iyar, 5708 (14th May, 1948)

4. Palestine (Appeal to Privy Council) Order 5th Iyar, 5708 in Council, 19241 (14th May, 1948)

5. Arbitration (Foreign Awards) (No. 2) Order, 20th Tammuz, 5734 19312 (10th July, 1974)

1) Laws of Palestine vol. m, p. 2608 (English Edition). 2) Laws of Palestine vol. JU, p. 2614 (English Edition).

127 6. Advertisements Ordinance1

7. Brokers Ordinance2

8. Fruit Export Ordinance3

9. General Loan Ordinance4 5th Iyar, 5708 (14th May, 1948)

10. Village Roads and Works Ordinance5

11. Civil Procedure Ordinance, 19386, 5th Elul, 5728 section 3A (1st September, 1968)

12. Banking Emergency Ordinance, 19397

13. Civil Procedure Ordinance, 19398

14. Loans (Approved Companies) Ordinance, 19409

15. Village Administration Ordinance, 194410

16. Palestine Order in Council, 1948 5th Iyar, 5708 (14th May, 1948)

17. General Agricultural Council Ordinance, 5708-194812

1) Laws of Palestine vol. I, p. 1 (English Edition). 2) Laws of Palestine vol. I, p. 100 (English Edition). 3) Laws of Palestine vol. I, p. 1751 (English Edition). 4) Laws of Palestine vol. I, p. 733 (English Edition). 5) Laws of Palestine vol. n, p. 1532 (English Edition). 6) P.G. of 1938, Suppl. I, p. 25 (English Edition). 7) P.G. of 1939, Suppl. I, p. 81 (English Edition). 8) P.G. of 1939, Suppl. I, p. 168 (English Edition). 9) P.G. of 1940, Suppl. I. p. 64. 10) P.G. of 1944, Suppl. I, p. 49. 11) P.G. of 1948, Suppl. H, p. 281 (English Edition). 12) l.R. of 5708, Suppl I, p. 41; LSI vol. I, p. 44. 18. Immigration Fees Ordinance, 5708-19481

19. Soldiers' Protection (Dwelling) Law, 5709-19492, Chapters One and Two

20. Tenants' Protection (Sublease, Accommodation of Guests and Exchange) Law, 5711-19513

21. Payment of Compensation from Italy Law, 5715-1955*

22. Emergency Regulations (Ma'pilim Ships), 5708-19485

23. Emergency Regulations (Cultivation of Waste Lands), 5709-19486

YITZCHAK SHAMIR MOSHE NlSSIM Prime Minister Minister of Justice MENAHEM SAVIDOR Chairman of the Knesset Acting President of the State

1) I.R. of 5708, Suppl. I, p. 44; LSI vol. I, p. 47. 2) Sefer Ha-Chukkim of 5709, p. 64; ¿5/ vol. Hi, p. 42. 3) Sefer Ha-Chukkim of 5711, p. 2; LSI vol. V, p. 1. 4) Sefer Ha-Chukkim of 5715, p. 114; LSI vol. DC, p. 125. 5) I.R. of 5708, Suppl. H, p. 141; I.R. of 5709, Suppl. I, p. 73; LSI vol. II, p. 46. 6) I.R. of 5709, Suppl. H, p. 3; I.R. of 5709, Suppl. I, p. 94; LSI vol. H, p. 70. (No. 46)

ENCOURAGEMENT OF INDUSTRIAL RESEARCH AND 5744-1984״ ,DEVELOPMENT LAW

Chapter One: Introduction

Object. 1. The object of this Law is the encouragement of industrial research and development for the purposes of -

(1) the development of science-intensive industry whilst utilising and expanding the technological and scientific infrastructure, and the human resources, existing in the State;

(2) the improvement of the balance of payments of the State by manufacturing and exporting science-intensive products developed ;therein and reducing the import of such products;

(3) the creation of places of employment in industry and the absorption therein of scientific and technological manpower.

Means of 2. For the purpose of achieving the object of this Law, there shall be pro-

achteving object. vided the grants, lqans, exemptions, reductions and relaxations mentioned therein (hereinafter referred to as "benefits"), which shall be given on the ba sis of an approved scheme, all as set out in this Law. implementation. 3. The Minister of Industry and Commerce and the Minister of Finance (hereinafter referred to as "the Ministers") are jointly charged with the im plementation of this Law and shall prescribe rules for the achievement of its object. The rules shall be published.

* Passed by the Knesset on the 24th Adar Bet, 5744 (28th March, 1984) and pub lished in Sefer Ha-Chukkim No. 1114 of the 2nd Nisan, 5744 (4th April, 1984), p. 100; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1677 of 5744, p. 210.

130 Chapter Two: Definitions

4. In this Law - Definitions.

"scheme" means an annual or multi-annual research-and-development scheme as a result of which any know-how, process or method is to be• come available for the manufacture of a new product or a substantial improvement of an existing product or the development of a new pro• cess or a substantial improvement of an existing process;

"product" means any tangible property and any know-how and includes a production process and computer software;

"new product" means a product the commercial manufacture of which is made possible by the discovery of any know-how, process or method which previously was not known or not generally available;

"research" means planned investigation with a view to discovering any new know-how in the expectation that it will be useful in developing a new product or new process or in substantially improving an existing product or process;

"development" means the application of the findings of any research, or any other know-how, to a scheme aimed at the manufacture of a new product or the development of a new process or a substantial improve• ment of an existing product or process and includes the consolidation of the features of a scheme, the preparation of programmes and designs, the construction of a prototype and the operation of an experimental model or a pilot plant, provided that the stages subsequent to the testing of the experimental model or to the trying out of the process under experimen• tal conditions or to the operation of the pilot plant shall not be regarded as development;

"manufacturer" means a body corporate registered in Israel which, as a result of the implementation of a scheme, is to manufacture in its enterprise in Israel a new product or an existing product in which a sub• stantial improvement has been made;

"research and development expenses" means expenses incurred in carry• ing out research and development under an approved scheme but does not include expenses as to which the Ministers, with the knowledge of the Economic Committee of the Knesset, prescribe that they shall not be taken into account

131 Chapter Three: Industrial Research-and-Development Administration

Establishment of 5. There is hereby established an "Industrial Research-and-Development Administration. Administration" (hereinafter referred to as "the Administration"), which shall operate for the achievement of the object of this Law and for the encourage• ment of investments in industrial research and development.

Authorities of 6. The authorities of the Administration are - Administration. (1) the Head of the Administration;

(2) the Research Committee;

(3) the Council of the Administration (hereinafter referred to as "the Council").

Head of 7. The Chief Scientist of the Ministry of Industry and Commerce shall be Administration. the Head of the Administration. The Head of the Administration shall ex officio be a member, and the chairman, of the Research Committee and a member of the Council.

Functions of Head 8. (a) The Head of the Administration is charged with the implementation of Administration. of the decisions of the Research Committee and the Council and shall act in their name.

(b) Everything to be submitted to the Research Committee, the Coun• cil or the Ministers shall be submitted through the Head of the Adminis• tration and every notice on behalf of any of them shall be delivered by him.

Research 9. (a) The Research Committee shall, in addition to the Head of the Committee. Administration, include the following members:

(1) four representatives of the Ministry of Industry and Commerce ap• pointed by the Minister of Industry and Commerce;

(2) two representatives of the Ministry of Finance appointed by the Minister of Finance;

(3) three representatives of the public appointed by the Ministers, pro• vided that two of them shall be industrialists.

(b) The appointment shall be for a period not exceeding three years; a member the period of whose appointment has expired may be reappointed.

(c) Where in any voting of the Research Committee the votes are evenly divided, the Head of the Administration shall have a casting vote.

132 (d) The members of the Research Committee shall also be members of the Council.

(e) The person or persons who appoints or appoint a member of the Research Committee shall also appoint a permanent deputy for him.

(f) A notice of the appointment, composition and address of the Re• search Committee shall be published in Reshutnot.

10. (a) The functions of the Research Committee shall be - Functions of Research (1) to decide upon the approval of schemes (hereinafter referred to as Committee. "approval") within the framework of the State Budget;

(2) to prescribe procedures and times for submitting applications for the approval of a scheme;

(3) to prescribe conditions for the grant of benefits;

(4) to provide and disseminate information as to investments in indus• trial research and development in Israel;

(5) to recommend to any competent authority to grant, within the framework of the enactments which apply in its sphere of competence or with the implementation of which it is charged and within the frame• work of the criteria prescribed by the Research Committee for the ap• proval of schemes, any reduction, relaxation, licence or loan likely to assist in achieving the object of this Law.

(b) The Research Committee shall prescribe the procedure of its delib• erations and work in so far as it is not prescribed by regulations.

•11. (a) The Ministers shall appoint to the Council, in addition to the Appointment of members of the Research Committee, five persons recommended by organi• Council. sations of industrialists which in the opinion of the Ministers are representa• tive for the purposes of this Law, three members of the scientific commu• nity, four State employees and three members of the public.

(b) A member of the Council shall be appointed for a period not ex• ceeding three years; a member the period of whose appointment has expired may be reappointed.

12. The function of the Council shall be to advise the Ministers as to any Function of matter relating to the achievement of the object of this Law and as to any• Council. thing relating to the development of science-intensive industries and to the determination of multi-annual national targets for the advancement of the re-

133 search and development required for the development thereof, including the establishment of a scientific and technological infrastructure for that purpose and the procurement of know-how and technologies from outside sources.

Procedure of 13. The Council shall prescribe the procedures of its deliberations and work Council. in so far as it is not prescribed by regulations.

Secrecy. 14. (a) Nothing of the proceedings of the Research Committee or the Council and no material delivered to either of them shall be disclosed save by or with the consent of the Head of the Administration, the Chairman of the Council or the Ministers.

(b) A person to whom any documents are delivered on behalf of the Research Committee or the Council, for the purpose of giving an opinion or for any other purpose, shall not disclose the contents of such documents to another save by authorisation from the Head of the Administration.

(c) The Head of the Administration may, with the approval of the Ministers, prescribe rules for the maintenance of the secrecy of the schemes, the approval thereof and the following up of the implementation thereof.

Conflict of 15. A member of the Research Committee or the Council shall not take part interests. in the deliberations thereof where his other activities may create a conflict of interests with the matter under consideration or where he has a personal interest therein.

Chapter Four: Approval and Objection

-e Re״Application for 16. (a) An applicant for the approval of a scheme shall submit to t approval, search Committee a detailed description of the scheme he intends to carry out, together with particulars of the investment required and the sources of financing, a survey of the existing know-how on the subject and the possi bilities of obtaining it, an exposition of the novelty of the product to be de veloped and its advantages over other products, particulars of how he pro poses to manufacture the product if the anticipated results of the research and development are achieved, particulars of the owners of rights in the know- how, manufacture or marketing, and a survey of the possibilities of market ing the product; the applicant shall deliver to the Committee any such other particulars or document requested by it as is required for an examination of the scheme.

134 (b) An application may be submitted by a manufacturer, and in special cases, with the approval of the Research Committee, by a person other than a manufacturer; approval shall not be granted unless it is proved to the satis• faction of the Committee that appropriate arrangements have been made to ensure that the manufacture is carried out exclusively in Israel.

17. (a) The Research Committee shall not approve a scheme or any part Approval of scheme. thereof unless it has received an opinion on the scheme from a professional examiner empowered in that behalf by the Head of the Administration and it appears to it that the scheme has a reasonable prospect of leading to the manufacture of a new product and to its marketing for export.

(b) The Research Committee shall not approve a scheme -

(1) if the applicant proposes to carry it out on the order of another person for full or partial payment;

(2) if the applicant is to receive, towards the implementation of the scheme, assistance by way of a grant from the Government or any other source, by operation of law or in some other manner, otherwise than in accordance with the provisions of this Law; the Ministers may by regulations with the approval of the Economic Committee of the Knesset, designate further modes of assistance for the purposes of this paragraph;

(3) if it concerns the carrying out of research approved as scien• tific research under the provisions of the Income Tax Law (Benefits for Investment in •Securities the Consideration for Which is Ear• marked for Scientific Research), 5744-19841.

(c) Where the Research Committee has approved a scheme or part thereof (any such scheme hereinafter referred to as an "approved scheme"), a written certificate to such effect, signed by the Head of the Administration, shall be issued.

(d) Where the Research Committee has not approved any scheme or part thereof, the Head of the Administration shall notify the applicant of the reasons, in writing, within fifteen days of the date of the decision.

18. (a) Any variation of an approved scheme, in respect of the subject of Approval of the research and development or the amount of the expenditure required for variations of scheme.

1) Sefer Ha-Chukkim of 5744, p. 14; supra, p. 16.

135 the implementation of the scheme or in any other respect, shall require the approval of the Research Committee.

(b) The Research Committee may empower any person to approve, af ter consultation with the professional examiner and in accordance with rules prescribed by it -

(1) any such variation of an approved scheme as arises out of variations of the prices of equipment and does not vary the quantity or type of the equipment;

(2) any such variation of an approved scheme as arises Out of an unforeseen variation of wages, provided that it shall not approve a variation exceeding the variation which has occurred in the national wage average during the period in question;

(3) any such other monetary variation of an approved scheme that does not exceed ten per cent of the amount approved as research and development expenses;

(4) a variation in the dates of implementation of an approved scheme;

Conditions of 19. (a) In an approval, the Research Committee may, at its discretion, approval. prescribe preconditions for the coming into force thereof and conditions in connection with the implementation of the scheme.

(b) Unless otherwise prescribed by the Research Committee, the fol lowing conditions shall apply to every approved scheme:

(1) The research and development shall be carried out by the ap ,jnated by the applicant, in the scheme־:plicant or by a person des as the person to whom the research and development or part thereof is to be entrusted for implementation. The replacement of the per son carrying out the research and development shall require the ap proval of the Research Committee, and the replacement of the chief researcher shall require the consent of the Head of the Administra tion;

(2) the product developed as a result of the research and develop ment shall be manufactured exclusively in Israel;

(3) any such know-how derived from research and development as according to the approved scheme is not the product to be

136 manufactured but is used in the manufacture of that product may only be transmitted to another with the consent of the Research Committee - upon or after the approval of the scheme - and on condition that the obligations imposed by this Law and the regula• tions thereunder and by the terms of the scheme, including the obligation not to transmit the know-how to another save with the consent of the Research Committee and the obligation to pay roy• alties, shall apply to the recipient of the know-how.

20. A person who has been given approval shall submit a report on the Reports. progress of the research and development and a financial report on the re• search expenses, all at the dates, and in accordance with rules, prescribed by the Research Committee.

21. (a) A person who has been given approval shall pay to the Treasury Royalties. royalties from the sale of the product developed under the scheme.

(b) All the amounts of royalties paid as aforesaid shall be used for the encouragement of industrial research and development as determined by the Research Committee.

(c) The royalties shall be paid at such rates and according to such rules as the Ministers shall prescribe by regulations after consultation with the Research Committee.

(d) The royalties shall be collected in like manner as tax is collected, and the Taxes (Collection) Ordinance1 shall apply as if the royalties were a tax within the meaning of that Ordinance.

22. (a) Where it appears to the Head of the Administration that the research Discontinuance of and development is not progressing in accordance with the scheme or that the implementation. results of the research and development at the stage it has reached indicate that the prospects of the success of the scheme have substantially dimin• ished, he may, after hearing the person to whom the approval was given, recommend to the Research Committee to revoke the approval or to vary the approved scheme.

(b) The Research Committee may accept the recommendation of the Head of the Administration, wholly or in part, or reject it or may give a dif• ferent decision in the matter.

1) Laws of Palestine vol. II, p. 1399 (English Edition).

137 (c) Where a report has not been submitted as provided in section 20, the Head of the Administration may regard the research and development as not progressing in accordance with the approved scheme and may act as pro• vided in subsection (a).

Objection. 23. (a) A person who considers himself aggrieved by a decision of the Re• search Committee under section 17,22 or 45 may lodge objection to it with the Objection Committee within forty-five days from the day on which the decision was •communicated to him.

(b) The objection shall be in writing, setting out the reasons for it.

Objection 24. (a) The Ministers shall appoint an Objection Committee of five from Committee. among the members of the Council who are not members of the Research Committee; three of them shall be State employees and two shall be mem• bers of the public.

(b) Three members of the Committee, being the chairman, a State employee and a member of the public, shall be a quorum at its deliberations.

Procedure of 25. The Objection Committee shall prescribe the procedure of its delibera- Objection tions and work in so far as it is not provided by regulations. Committee.

Chapter Five: Benefits

Right to a gram. 26. A person who has been given approval under this Law shall be entitled to receive a grant if he meets all the conditions of the approval of the scheme and complies with the provisions of this Law and of the rules made by the Research Committee under this Law.

Prevention of 27. A grant shall not be paid more than once in respect of any one scheme. double grant.

Rate of grant. 28. (a) A grant shall be proportionate to the research-and-development ex• penses, as prescribed in the Schedule.

(b) The Ministers may, with the approval of the Finance Committee of the Knesset, vary the rates and conditions specified in the Schedule.

Security. 29. The Head of the Administration may, in accordance with rules prescribed by the Research Committee, demand security to ensure the return of the grant under sections 22 and 43 or otherwise to ensure compliance with the provi• sions of this Law or the conditions on which the scheme was approved.

138 30. The grant shall be paid not later than thirty days after the day on which Time for payment the recipient of the approval proves, to the satisfaction of the Head of the of grant. Administration, that he has carried out the part of the approved scheme and incurred the expenditure to which the application for the grant relates.

31. (a) Notwithstanding the provisions of section 30, the Head of the Ad• Advance payments. ministration may, in accordance with rules prescribed by the Research Com• mittee, approve the payment of an advance on a grant

(b) For the purposes of sections 26, 29,44,45 and 46, an advance on a grant shall be deemed to be a grant.

32. The Research Committee may prescribe rules for the implementation of Rules. the provisions of this chapter, including procedure for making application for a grant, the particulars to be contained in the application and the documents to be attached to it, the security required for the receipt of a grant, the manner and times of the payment of a grant (by instalments or at one time), as well as rules for withholding part of the grant, not exceeding a specified propor• tion thereof, as the Ministers shall prescribe.

33. (a) The Research Committee may, on the application of the applicant, Loans. decide that the applicant or a person who invests in the scheme in his enter• prise shall be given a loan instead of a grant under the provisions of this chapter.

(b) The loan shall be given under a loan agreement with a bank ap• proved for this purpose by the Minister of Finance. The bank shall place the loan at the disposal of the person entitled to it, at a rate proportionate to the research-and-development expenses of the approved scheme and on conditions prescribed by the Minister of Finance after consultation with the Minister of Industry and Commerce.

(1) the applicant has proved that not less than ten per cent of the research-and-development expenses approved under the approved scheme has been financed out of his own capital and not by loans and

(2) it has been proved to the satisfaction of the Head of the Ad• ministration that the raising of funds from investors in or outside Israel for the implementation of the approved scheme was carried out properly and on the basis of an appropriate disclosure of the risks and prospects.

139 Benefits for 34. (a) The rate of the tax ori such income of a scientific worker as is de• scientific workers. rived from employment in an approved scheme shall not exceed thirty-five per cent of such income; any such income shall be assigned to the highest bracket of the chargeable income; this benefit shall not be granted for a pe• riod exceeding eighteen months.

(b) In this section, "scientific worker" means an employee who, under a collective agreement made in Israel and applying to him, is entitled to a sabbatical year with pay, who in the sabbatical year was employed within the framework of an approved scheme under this Law and who prior to such em• ployment was not an employee of the employer concerned.

Transitional loan 35. Where it appears to the Research Committee that an approved scheme for manufacture has been implemented and that the manufacturer intends to begin and marketing. manufacturing and marketing a product resulting from the implementation of the scheme, it may approve the grant of a loan to the manufacturer. The pro• visions of section 33 shall apply mutatis mutandis to such a loan.

Chapter Six: Technological Progress Fund

Establishment 36. There is hereby established a "Technological Progress Fund" (hereinafter of Fund. referred to as "the Fund").

Object of Fund. 37. The object of the Fund is to further technology in Israel and to assist the expansion of industrial research and development activity, inter alia by -

(1) assisting the establishment of a technological infrastructure, de• signed to benefit a particular industrial sector or industry as a whole, in spheres in which such an infrastructure does not at present exist or is inadequate;

(2) conducting research, surveys and economic and technological in• quiries in order to assist the shaping of a government policy in aid of industrial research and development;

(3) assisting the training of manpower for science-intensive industries.

Receipts of Fund. 38. The receipts of the Fund shall be -

(1) an amount at the rate of one per cent of every grant or loan given under this Law, to be deducted at the time of payment to the person entitled to receive the grant or loan;

140 (2) an amount equal to the amount deducted under paragraph (1) which shall be appropriated from the State Budget;

(3) moneys and appropriations from any person for the advancement of its objects and activities.

39. All the receipts of the Fund shall be earmarked for activities thereof ap• Application of proved by its management within the framework of its budget and objects. moneys of Fund.

40. (a) The Fund shall be managed by a management of five members Management of Fund. (hereinafter referred to as "the Management"), namely -

(1) the Head of the Administration, who shall be the chairman of the Management;

(2) an employee of the Ministry of Industry and Commerce ap• pointed by the Minister of Industry and Commerce;

(3) an employee of the Ministry of Finance appointed by the Minister of Finance;

(4) two members appointed by the Ministers on the recommenda• tion of industrialists' organisations as specified in section 11.

(b) A member of the Management shall be appointed for a period not exceeding three years. A member whose period of appointment has expired may be reappointed.

41. The Management shall prescribe the procedure of its deliberations and Procedure of work in so far as it is not prescribed by regulations. Management.

Chapter Seven: International Cooperation in Industrial Research and Development

42. The Government may, on the recommendation of the Minister of Indus- Joint funds, try and Commerce, establish funds operated jointly by it and the govern• ments of other states (hereinafter referred to as "joint funds"), the object of which shall be the encouragement of cooperation in research and development between industrial enterprises in Israel and in other states with a view to fur• thering the objects of this Law.

141 Chapter Eight: General Provisions

Duty to supply 43. A person who has been given approval shall supply the Head of the information. Administration, at his request, with any information, documents and other evidence relevant to the implementation of the approved project, the fulfil• ment of the conditions of the approval and the determination of the rate of benefits.

Benefits to be 44. The provisions of this Law shall apply notwithstanding anything pro• conditional on vided by any other enactment. No benefit shall be granted unless the provi• compliance with provisions. sions of this Law, the regulations and rules thereunder and the approved scheme, and every condition of the approval, have been complied with and the applicant has proved that he keeps acceptable books, within the meaning of the Income Tax Ordinance1, and, if he has any other business, that he keeps a separate set of accounts for the purpose of the approved scheme.

Suspension and 45. (a) Where it appears to the Head of the Administration that a person revocation. who has received approval has not complied with any provision of this Law or the regulations or rules thereunder or with the approved scheme or any condition of the approval, he may send him a warning setting a thirty-day time limit for the fulfilment of his obligation.

(b) A person who has received a warning may apply to the Head of the Administration, in writing, for additional time, stating the reasons for his application.

(c) Where the Head of the Administration has refused to grant addi• tional time or the recipient of approval has not fulfilled his obligation within the time granted, the Head of the Administration shall give notice to such effect to the Research Committee, which may thereupon decide -

(1) to authorise the continued implementation of the scheme, subject to conditions or unconditionally;

(2) to suspend or revoke the approval, prospectively or retroac• tively;

(3) to withhold benefits pending further clarification;

(4) to request the return of benefits granted.

1) Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145.

142 (d) Where an objection to the decision of the Research Committee is lodged under section 23, the carrying out of the decision shall be stayed pending the decision on the objection.

46. (a) Where it appears to the Research Committee that approval was ob• Revocation by reason of false tained on the basis of false or knowingly misleading statements, it shall re• statement. voke the approval retroactively to the day on which it was given.

(b) A decision of the Research Committee under this section shall be appealable to the District Court within sixty days from the day on which notice of the decision is delivered. Where an appeal is filed, the approval shall be regarded as suspended until the day on which the decision on the ap• peal is given.

47. (a) A person requested under section 45(c)(4) to return benefits granted Return of benefits. to him shall comply with the request within ninety days from the date of the notice, or within such longer period as may be fixed in the notice, adding linkage differentials and interest, within the meaning of the Adjudication of Interest and Linkage Law, "5721-19611; but the Research Committee may, for special reasons which it shall record, waive the whole or part of the interest.

(b) Where a body corporate has received benefits under this Law and, before it has implemented the whole of the approved scheme and fulfilled all the conditions of the approval, a winding-up order or receiving order is made against it or it resolves upon its voluntary winding-up, it shall be deemed to have undertaken to return the benefits before the making of the winding-up order or receiving order or the passing of the resolution, unless the Research Committee decides that they shall not be returned or shall be returned only in part; the same shall apply in the case of an individual against whom a receiving order is made in bankruptcy proceedings.

(c) Where an approval is revoked under section 46, the recipient of the approval shall, within sixty days from the day on which notice of the revocation is sent to him, return the benefits he has received, together with linkage differentials and interest, within the meaning of the Adjudication of Interest and Linkage Law, 5721-1961, from the date of receipt of the bene• fits.

1) Sefer Ha-Chukkim of 5721, p. 192; LSI vol. XV, p. 214.

143 (d) The provisions of this section shall not derogate from any other law, and where a condition concerning the payment of royalties or the prohi• bition of the transmission of know-how is infringed, the provisions of this section shall not affect the obligation of the person to whom the approval was granted to fulfil that condition.

Publication of 48. Rules prescribed by the Research Committee under this Law shall be rules of the published in Reshumot. Research Committee. Publication of 49. Notice of appointments under this Law shall be published in Reshumot. appointments.

Delegation of 50. The Head of the Administration may, with the approval of the Research powers of Head of Committee, delegate any of his powers under this Law, except the power to Administration. serve as member and chairman of the Research Committee and as member of the Council.

Saving of powers. 51. The powers conferred by this Law shall not derogate from powers under any other enactment

Regulations. 52. The Ministers may make regulations as to any matter relating to the implementation of this Law.

Commencement. 53. This Law shall come into force on the 8th Tevet, 5745 (1st January, 1985).

SCHEDULE

(Section 28)

1. In this Schedule, "incipient company" means a company the first and only activity of which is a research-and-development scheme, which has no sources of financing other than the equity capital of the operators of the research and development and which has been recognised by the Re• search Committee as deserving the encouragement given to incipient companies.

2. The rate of the grant shall be fifty per cent; however, in the following cases, it shall be as specified hereunder in respect of each case:

(1) incipient company — sixty-six per cent of the research-and-devel• opment expenses up to an amount of shekalim equivalent to 150,000

144 dollars of the United States of America in any financial year, and fifty per cent of the research-and-development expenses in excess of that amount;

(2) development of computer software or know-how: where the devel• opment includes both hardware and software - fifty per cent; where the development includes only software - fifty per cent for the first year of development and thirty per cent for subsequent years of development;

(3) development of products for military use - thirty per cent;

(4) scheme carried out by researchers who are local residents, in a place remote from the centre of the country* situated in an "A" development zone defined under the Encouragement of Capital Investments Law, 5711-19591, and designated by the Ministers for the purposes of this Schedule - sixty per cent;

(5) improvement of a product developed with financial assistance from the State - thirty per cent.

rTTZCHAK SHAMIR GIDEON PATT YIGAL COHEN-ORGAD Prime Minister Minister of Industry Minister of Finance and Commerce

CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5719, p. 234; LSI vol. XV, p. 258. (No. 47)

ENCOURAGEMENT OF CAPITAL INVESTMENTS 5744-1984״ ,AMENDMENT No. 23) LAW)

Amendment of It In section 18(a) of the Encouragement of Capital Investments Law, section 18. 5719-19591 (hereinafter referred to as "the principal Law"), the expression "the 27th Adar Bet, 5784 (31st March, 1984)" shall be replaced by the ex pression "the 20th Adar Bet, 5746 (31st March, 1986)".

Amendment of 2. In section 94(a) of the principal Law, paragraph (4) shall be re-marked as section 94. paragraph (5) and the following paragraph shall be inserted before it:

"(4) he received approval between the 28th Adar Bet, 5744 (1st April, 1984) and the 20th Adar Bet, 5746 (31st March, 1986) and implemented the project within the period prescribed by the Board in the instrument of approval but not later than the 26th Adar Bet, 5752 (31st March, 1992);".

Amendment of 3. In section 95(a) of the principal Law, paragraph (3) shall be re-marked as section 95. paragraph (4) and the following paragraph shall be inserted before it:

"(3) he received approval between the 28th Adar Bet, 5744 (1st April, 1984) and the 20th Adar Bet, 5746 (31st March, 1986) and implemented the project within the period prescribed by the Board in the instrument of approval but not later than the 26th Adar Bet, 5752 (31st March, 1992);".

YITZCHAK SHAMIR GIDEON PATT YIGAL COHEN-ORGAD Prime Minister Minister of Industry Minister of Finance and Commerce

CHAIM HERZOG President of the Slate

Passed by the Knesset on the 24th Adar Bet, 5744 (28th March, 1984) and published in Sefer Ha-Chukkim No. 1114 of the 2nd Nisan, 5744 (4th April, 1984), p. 109; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1673 of 5744, p. 190. 1) Sefer Ha-Chukkim of 5719, p. 234; ¿5/ vol. XIH, p. 258; Sefer Ha-Chukkim of 5742, p. 262; ¿5/ vol. XXXVI, p. 292.

146 (No. 48)

INCOME TAX (ENCOURAGEMENT OF LETTING OF APARTMENTS) (TEMPORARY PROVISIONS AND AMENDMENT OF LAWS) 5744-1984״ ,AMENDMENT No. 2) LAW)

1. In section 3(a) of the Income Tax (Encouragement of Letting of Apart- Amendment of ments) (Temporary Provisions and Amendment of Laws) Law, 5741-1981' - section 3.

(1) in paragraph (1), the words "four years" shall be replaced by the words "five years";

(2) in paragraph (2), the words "four years" shall be replaced by the words "five years" and the words "three years" shall be replaced by the words "four years".

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

* Passed by the Knesset on the 24th Adar Bet, 5744 (28th March, 1984) and published in Sefer HaChukkim No. 1114 of the 2nd Nisan, 5744 (4th April, 1984), p. 110; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1676 of 5744, p. 208. 1) Sefer Ha-Chukkim of 5741, pp. 68 and 283; LSI vol. XXXV, pp. 67 and 346.

147 (No. 49)

INCOME TAX (TAXATION UNDER CONDITIONS OF INFLATION) (AMENDMENT No. 3) LAW, 5744-1984*

Amendment of 1. In section 1 of the Income Tax (Taxation under Conditions of Inflation)

section l. Law> 5742.i982i (hereinafter referred to as "the principal Law") -

(1) in paragraph (11), the figure "(1)" shall be inserted after the words "other than", the words "within sixty days from the date of publication of the Income Tax (Taxation under Conditions of Inflation) (Amendment) Law, 5743-1983" shall be replaced by the words "before the expiration of sixty days from the date of publication of the Income Tax (Taxation under Conditions of Inflation) (Amendment No. 3) Law, 5744-1984", and the following subparagraph shall be added at the end:

"(2) a small company, within the meaning of section 76 of the Ordinance, whose activity consists in holding immovable property and all whose assets are immovable property, cash, or deposits with a financial institution;";

(2) in paragraph (19) -

(a) in subparagraph (a)-

(1) the words "as well as assets which are used for let• ting and to which section 13(2) applies" shall be added at the end of item (3);

(2) the following item shall be added at the end:

"(5) an overpayment of tax refunded to an assessee, being a body of persons not liable to tax under sec• tion 2(1) of the Ordinance, in respect of interest, with the addition of the amount of interest which has been received in respect of such overpayment and which has accumulated since the beginning of the tax year 1983;";

* Passed by the Knesset on the 24th Adar Bet, 5744 (28th March, 1984) and published in Sefer Ha-Chukkim No. 1115 of the 2nd Nisan, 5744 (4th April, 1984), p. 112; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1610 of 5743, p. 50. 1) Sefer Ha-Chukkim of 5742, p. 234 - LSI vol. XXXVI, p. 249; Sefer Ha-Chukkim of 5743, p. 82 - LSI vol. XXXVII; Sefer Ha-Chukkim of 5744, p. 40 - supra, p. 47.

148 (b) in subparagraph (c)(1), after the words "provided that it has been entered as an expense in the books of the company", there shall be added the words "and, in the case of a company being a co• operative society, also a consideration received as a contribution of the members to the capital of the society;";

(c) in subparagraph (d), "if expenses for its acquisition are brought into account for the purpose of subtraction from the equity capital in the current tax year, such grant being" shall be inserted after the words "in respect of a protected asset", and the words "and 25 per cent of the amount of a grant in respect of an industrial building the cost of whose construction is not subtracted under paragraph (20)(a)(2) in the current year" shall be added at the end;

(3) in paragraph (20)-

(a) in subparagraph (a) -

(1) the words "or in the case of immovable property the profit from the sale of which" shall be replaced by the words "or in the case of land on which building has not yet begun and the profits from the sale of which" and the words "possession of the property" shall be re• placed by the words "possession of the land";

(2) the words "for the purposes of calculating subtraction under subparagraph (g) in respect of shares not traded on the stock exchange, the amount expended for their acquisition shall be deemed to have been expended at the beginning of the month following their acquisition" shall be added at the end of item (1);

(3) the following shall be added at the end of item (2): "except -

(a) the expenses of the construction of an industrial rental building, in accordance with a scheme approved under the En• couragement of Investments Law, in an "A" development zone as defined for the purposes of that Law, incurred by a com• pany whose main business is the con• struction of industrial rental buildings in that zone; the expenses of the construe- tion of the buildings shall, for the pur• poses of calculating capital gain and ap• preciation, be deemed to be subtracted at the beginning of the tax year following the year in which they were incurred and the date of the subtraction shall be re• garded as the date of the acquisition;

(b) the expenses of the construction of a rental building to which the Encourage• ment of the Letting of Apartments Law applies, incurred during the two tax years from the year in which construction ex• penses were first incurred; however, if the property was let in the course of the tax year, the expenses incurred in that year up to the date of the letting shall be sub• tracted at the time of the letting; the ex• penses of the construction of the building shall, for the purposes of the provisions of section 4 and for the purposes of calculating capital gain and appreciation, be deemed to be subtracted at the begin• ning of the tax year following the year in which they were incurred or on the date of the letting, as the case may be, and the date of the subtraction shall be deemed to be the date of the acquisition;";

(4) the following item shall be added at the end of sub• paragraph (a):

"(5) tax overpaid in respect of earlier tax years by an assessee being a body of persons not liable to tax under section 2(1) of the Ordinance in respect of in• terest, if the overpayment relates to tax due under an assessment pursuant to section 145(a)(1) of the Or• dinance or under an assessment or order which on the date of the filing of the return for the tax year in which the overpayment is made is no longer subject to contestation or appeal, as the case may be;";

(b) in subparagraph (c), after the words "profits of a family com• pany", there shall be added the words "and including profits dis-

150 tributed by a cooperative society and, in the case of a society which under section 62 of the Ordinance is to be treated as a partnership, also including the tax paid by the society";

"(h) for the purposes of this definition, "amount ex pended" means the consideration even if not yet paid, however -

(1) in the case of immovable property the consid eration for which is paid mainly in construction ex penses or as a proportion of the consideration for the sale of a building to be erected, the amount expended is the sale value of the real estate right in the prop erty for the purposes of acquisition tax under the Appreciation Tax Law, adjusted for the purposes of calculating subtraction - notwithstanding the provi to the rate of increase of ־ (sions of subparagraph (g the index from the date of acquisition, as determined for the purposes of acquisition tax, to the first day of the second half of the tax year following the tax year in which construction expenses were first paid for the property; the said day shall be regarded as the date of the subtraction and the amount subtracted shall, for the purposes of section 14(a)(1), be re garded as an amount expended for the acquisition of the plot;

(2) in the case of shares received as consideration for the sale of a capital asset, being an unprotected asset, under section 95 of the Ordinance, the amount expended is the balance of the original cost of the asset;

(3) in the case of a Peace-for-Galilee Loan, the amount expended is 40 per cent of the amount paid.";

(4) the following paragraph shall be inserted after para graph (24):

"(24A) "balance of deduction-for-capital-preservation" means a deduction-for-capital-preservation and a transferred deduction, within the meaning of sec• tion 3(d), which have not been permitted up to a particular date;";

(5) the following paragraph shall be inserted after para• graph (26):

"(26A) "balance of added amount" means an added amount, and a transferred added amount, within the meaning of section 5(b), which have not been set off, or become income from a business, up to a particular date;";

(6) the following paragraph shall be inserted after para• graph (38):

"(38A) "trade-wide investment financing com• pany" means a government company, within the meaning of the Government Companies Law, 5735- 19751, mainly financed direct from the State budget and mainly concerned with granting loans to ap• proved enterprises under the Encouragement of In• vestments Law;";

(7) the following paragraph shall be added after para• graph (41):

"(42) "vehicle" means-

(a) a motor vehicle being a work vehicle, other than a forklift, which is not used by its owner in obtaining income from agriculture or, if owned by a collective body corporate, is not used by the members of 'hat body in obtaining income from agriculture and which is also not used by its owner in obtaining income from the construction of buildings or from mines or quarries;

(b) a public vehicle;

1) Sefer Ha-Chukkim of 5735, p. 132; LSI vol. XXTX, p. 162.

152 Regulations (Deduction of Vehicle Ex• penses), 5735- 19751 (hereinafter referred to as "the Vehicle Expenses Deduction Regula• tions"), including a privatevehicle used for driving lessons, to be regarded as a commer• cial vehicle under this Law;

(d) a private vehicle within the meaning of the Vehicle Expenses Deduction Regulations;

for the purposes of this definition -

(1) apart from the exceptions mentioned in paragraphs (c) and (d) - all classes of vehicles shall be taken within the meaning of the Traffic Ordinance2;

(2) all classes of vehicles include a trailer drawn by the vehicle;

(3) "ta'agid kibbutzi" (collective body cor• porate) has the meaning assigned to this term in the Income Tax Regulations (Taxation under Conditions of Inflation) (Equity Capital and Protected Assets in a Kibbutz), 5743-1983V.

2. The following section shall be inserted before Chapter Two of the prin• Addition of cipal Law: section 1A.

"Tax on amounts 1A. Where this Law prescribes that any amount shall be regarded as income regarded as income from a business, then, notwithstand• from a business. ing anything provided in any Law, the rate of tax under section 121 of the Ordinance shall apply to it if it is in the hands of an individual and the rates of tax under sec• tion 126 and 127 of the Ordinance shall apply to it if it is in the hands of a body of persons.".

1) Kovetz Ha-Takkanot of 5735, p. 2402. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 7, p. 173; NV vol. I, p. 222. 3) Kovetz Ha-Takkanot of 5743, p. 1281.

153 Amendment of 3. In section 3 of the principal Law - section 3. (1) after the words "and without" where first occurring in the opening passage of subsection (a)(2), there shall be inserted the words "income from dividend or from the distribution of profits, income from a partnership to which the capital-preservation mechanism does not apply and"; (2) in subsection (b)(2), after the words "an investment financing bank", there shall be inserted the words "a trade-wide investment financ• ing company";

(3) the following paragraph shall be added at the end of subsection (d):

"(4) Notwithstanding the provisions of paragraphs (2) and (3), an assessee to whom subsection (b)(5) applies who during a period of three successive years was not, in any of the years, permitted the full deduction-for-capital-preservation shall, in the third year, be permitted the full deduction transferred to the said tax year: Provided that he shall not be permitted to deduct a part of the transferred amount of deduction which, together with the deductible part of the capital preservation deduction for that year, in excess of the adjusted income less the losses capable of being set off.".

Amendment of 4. In section 4 of the principal Law - section 4. (1) the words "within the meaning of the Income Tax (Vehicle Ex• penses) Regulations, 5735-1975", in the opening passage shall be deleted; (2) in paragraph (2), the closing passage, beginning with the words "Provided that if, in the case of an asset" shall be replaced by the words "Provided that if, in the case of immovable property of an individual, or of a small company within the meaning of section 76 of the Ordinance, which began to be used before the coming into force of this Law, the assessee proves to the satisfaction of the Assessing Officer that in the three years preceding the determining day he did not claim interest ex• penses in excess of 2,500 shekalim or two per cent of his total charge• able income in those three years, whichever is less, and did not attribute to the cost of assets interest in excess of the said lesser amount, the rate of increase of the index shall be reckoned from the date of the acquisition of the asset but not from before the 1st April, 1974";

(3) the following paragraph shall be added at the end:

154 "(3) in relation to a work vehicle, as referred to in section 1(41), acquired before the tax year 1983, the determining day for the pur• poses of paragraph (2) shall be the first day of that tax year.".

5. In section 5 of the principal Law - Amendment of section S. (1) the following subparagraphs shall be added at the end of subsection (b)(2): "(c) Notwithstanding the provisions of subparagraph (ft), in the case of an assessee who during three successive years was not, in any of the years, permitted to fully set off the added amount created in that tax year, the whole of the added amount transferred to that tax year shall, in the third year, be regarded as income from a busi• ness.

(d) The provisions of subparagraphs (a), (b) and (c) shall not ap• ply to an assessee who owns a building under construction intended to be used as a hotel and who has no income from a business and no income under section 20 from securities other than debentures or certificates of participation in joint investment trust funds as re• ferred to in section 3(b)(5). For this purpose, "hotel" means a hotel within the meaning of the Commodities and Services (Control) (Hotels) Order, 5727-19671. for which the assessee has received ap• proval within the meaning of the Commodities and Services (Control) (Identification of Businesses for the Sale of Goods and Provision of Services to Tourists) Order, 5727-19672.";

(2) the following subsection shall be added after subsection (c):

"(d) A company which, if it had not an income as specified in subparagraphs (a), (b) and (d) of subsection (b)(2), would come un• der the definition of an industrial company within the meaning of the Encouragement of Industry Law, shall continue to come under the definition of an industrial company, and a company as referred to in section 49 of the said Law which was entitled to benefits thereunder shall continue to be so entitled even if it has an income as aforesaid.".

1) Kovetz Ha-Takkanol of 5727, p. 1150. 2) Kovetz Ha-Takkanot of 5727, p. 1158.

155 Amendment of 6. In section 7(b) of the principal Law, the words "There shall also not be section 7. adjusted losses-from-a-business in the hands of a body of persons which were set off by the end of the preceding tax year against income not chargeable with company tax" shall be added at the end.

Amendment of 7. In section 8 of the principal Law - section 8. (1) in subsection (b), the words "a private vehicle or" shall be inserted after the words "of an eligible assessee, other than" and the words "or the transferred added amount" shall be inserted after the words "against the added amount";

(2) in subsection (d), the words "chargeable" shall be inserted between the words "two per cent of his" and the word "income";

(3) the following subsection shall be inserted after subsection (d):

"(e) For the purposes of this section, a work vehicle as referred to in section 1(42) acquired before the tax year 1983 shall be deemed to have been acquired at the beginning of that tax year and, in computing the capital gain, an inflationary amount, adjusted to the determining day within the meaning of subsection (a), shall be de• ducted from the real capital gain.".

Amendment of 8. In section 10 of the principal Law - section 10. (1) in paragraph (1), the words "and not included in the chargeable in• come" shall be replaced by the words "and not included in the income chargeable with tax"; (2) the following paragraph shall be added after paragraph (9):

"(10) the following amounts, expended in the tax year and not permitted for deduction, shall, multiplied by 100 and divided by 35, be deducted from the adjusted income of a financial institution within the meaning of sections 3 and 6:

(a) amounts of interest on liquidity deficits, fixed by virtue of power under section 51 of the Bank of Israel Law, 5714-19541 (hereinafter referred to as "the Bank of Israel Law");

1) Sefer Ha-Chukkim of 5714, p. 192; LSI vol. VHI, p. 163.

156 (b) amounts of fines for deviations from credit ceilings imposed by virtue of power under section 53 of the Bank of Israel Law; ,

(c) amounts paid in respect of deviations as referred to in the Banking (Guarantees and Other Undertakings on Account of Customers) Order, 5735-19751.

9. The following paragraph shall be added at the end of section 12: Amendment of section 12. "(8) Notwithstanding the provisions of section 3(a), the adjusted income of a life insurance company within the meaning of section 50 of the Ordinance shall include also income not chargeable with company tax, except income from dividend and such part of the capital gain or appreciation as is an inflationary amount.".

10. In section 13 of the principal Law, paragraph (2) shall be replaced by the Amendment of following paragraph: section 13.

"(2) other property used for letting shall be regarded as protected assets and the following provisions shall apply in respect thereof:

(a) where any amount, being an expended amount within the was used for the acquisition of prop ,(!/׳)(meaning of section 1(20 erty as aforesaid in the course of the tax year and the property was not sold in the course of that year, such amount shall be subtracted from the equity capital. However, for the purpose of computing the subtraction under section l(20)(g), an amount expended as aforesaid shall be deemed to have been expended at the beginning of the month following the month in which it was expended and the day of the beginning of its use in producing the income shall not be prior to the said date;

(b) the provisions of Part Five of the Ordinance, or the Apprecia tion Tax Law, shall apply to the income from the sale of the said property subject to the provisions of this Law: Provided that in the case of property acquired after the determining day the date of the subtraction shall be regarded as the date of the acquisition.".

1) Kovelz Ha-Takkanot of 5735, p. 2496.

157 Amendment of 11. In section 15 of the principal Law - section IS. (1) in subsection (a)(2), the words "depreciation under section 4" shall be replaced by the words "interest expenses"; (2) in subsection (b)(2), the words "shall be subject to the following provisions: (a) he" shall be inserted before the words "shall be allowed the deduction", and the following subparagraph shall be added at the end:

"(b) the balance of the deduction for capital preservation shall be struck out and the balance of the added amount shall be regarded as income from a business.".

Amendment of 12. In section 19(b)(2) of the principal Law, the following subparagraph section 19. shall be added at the end:

"(f) a loan to the State.".

Amendment of 13. In section 20 of the principal Law - section 20. (1) in subsection (a), the words "an assessee-for-the-purposes-of-this- Law" shall be replaced by the words "a body of persons being an assessee-for-the-purposes-of-this-Law and any other eligible assessee" and the words "even though he has income as aforesaid" shall be replaced by the words "and a company as referred to in section 49 of the said Law which was entitled to benefits thereunder shall continue to be so entided even though they may have income as aforesaid at a rate not exceeding 25 per cent of their income in the tax year"; (2) in subsection (c) -

(a) the words "either of the following" shall be replaced by the words "one of the following";

(b) in paragraph (1) -

(1) the opening passage shall be replaced by the words "controlling shares in a company";

(2) in the definition of "controlling shares of a com• pany", the mark "(a)" shall be inserted after the word "means", the words "including securities issued in respect thereof shall be deleted, the words "at the beginning of the tax year" shall be inserted after the words "which are held" and the following shall be added at the end:

158 "Provided that the assessee or the controlled company applies to the Assessing Officer, in writing, within sixty days from the beginning of the tax year or, in the case of the tax year 1982, by the 26th October, 1982, to regard them as protected assets for the purposes of this Law;

(b) shares traded on the stock exchange which on the determining day were held by an eligible assessee or a company controlled by him, not being financial institu• tions, and which are still held by him or it on the 1st March, 1984, and together vest in him, or it, either by themselves or with untraded shares, at least 25 per cent of the voting rights in the company shall be regarded as controlling shares at the beginning of every tax year in which they were in the hands of their owner from the de• termining day, even if such owner did not ask that they be regarded as a protected asset; in this definition, "financial institution" means -

(a) a company or cooperative society carrying on the receipt of monetary deposits on current account in order to make payments therefrom upon demand by cheque;

(b) a financial institution within the meaning of the Value Added Tax (Determination of Financial Institution) Order, 5737-19771;";

(3) in the definition of "company controlled by the assessee", the words "directly or indirectly" shall be inserted after the words "in which the assessee holds";

"(3) shares registered on the stock exchange whose sale is prohibited by a prospectus for a period of at least two years and which the assessee, within twenty days from the date of registration, requests shall be regarded as a protected asset; where he so requests, the provisions applying to controlling shares under subsection (d) shall apply to them.";

Kovetz Ha-Takkanot of 5737, p. 1309. (3) the following paragraph shall be added at the end of subsection (d):

"(5) notwithstanding the provisions of paragraph (4), where an as• sessee sells any controlling shares or any securities issued in re• spect thereof and he is not, in respect of the sale, liable to tax under section 2(1) of the Ordinance and, in the case of shares to which paragraph (b) of the definition of controlling shares in subsection (c) does not apply, he has held the shares for a period of at least three years, he may, within thirty days from the date of the sale, request that the consideration be an addition to the equity capital, on condition that the profit from the sale is charged with tax at the rate of 10 per cent thereof in addition to the tax to which he is li• able and that the said tax is paid not later than the date of the re• quest; the said profit shall be regarded as an inflationary amount.";

(4) the following subsection shall be inserted after subsection (dl):

"(d2) Where an eligible assessee acquires, at a particular time in the course of the tax year, shares traded on a stock exchange which vest in him at least 10 per cent of the voting rights in a company at a price not less than 90 per cent of the stock exchange price at that time, or has, in the course of the tax year, shares vesting in him at least 10 per cent of the voting rights in a company at the time of their registration on the stock exchange, the shares shall be regarded as controlling shares in the company if he so requests the Assess• ing Officer within twenty days from the date of the acquisition or registration; in respect of shares acquired as aforesaid, the subtrac• tion from the equity capital shall be computed under section l(20)(g); if the assessee requests that the said shares shall be re• garded as controlling shares and he sells them or securities acquired by virtue thereof before two years have elapsed since the date of ac• quisition or registration, the consideration shall be regarded as in• come from a business: Provided that if the assessee has a loss from the sale he shall not be permitted a set-off; for this purpose, if the assessee has any further shares or securities of the same kind but they are an unprotected asset in his hands, they shall be deemed to be sold first.";

(5) the words "and are not a protected asset in the tax year" shall be added at the end of subsection (i);

(6) the following subsections shall be added after subsection (i):

"(j) Where securities to which an Arrangement for the Acquisition of Bank Securities, published in Yalkut Ha-Pirsumim No. 2971 of the 16th Cheshvan, 5744 (23rd October, 1983), applies are blocked by an eligible assessee in a deposit under the terms of the said ar rangement, the following provisions shall apply to them:

(1) they shall, for the purposes of subsection (b), be deemed to have been sold on the 30th Tishri, 5744 (6th October, 1983), at the stock exchange prices of that day;

(2) the amount of the consideration referred to in para graph (1) shall be regarded as an investment in a protected asset made on the 25th Cheshvan, 5744 (1st November, 1983) and be subtracted from the equity capital from that day.

(k) Where a banking institution, a bank holding corporation within the meaning of the Banking (Licensing) Law, an insurer, or a company controlled by any of them, having securities to which an arrangement as referred to in subsection (j) applies, enters them in its books in the manner usual for the entry of debentures the in come from which is declared on a cumulative basis, the change in their value shall, notwithstanding the provisions of subsection (b), be reckoned in accordance with their total value as entered in the books at the end of the tax year and not in accordance with the stock exchange prices;

for this purpose, "controlled company" means a company in which an assessee as aforesaid holds, directly or indirectly, at least 25 per cent of the voting rights.".

14. In section 22 of the principal Law, the words "and section 35(3)" shall Amendment of .and (3)". section 22 (6׳)(be replaced by the words "and section 35(1

15. In section 24(b) of the principal Law, in paragraph (5), the words "the Amendment of amounts referred to in paragraph (2)" shall be replaced by the words "amounts section 24. of income or loss attributed to the account of the investment of the partner in the partnership", and the words "in paragraph (2)" at the end of the paragraph shall be deleted.

16. In section 26 of the principal Law, the following paragraph shall be in Amendment of serted after paragraph (3): section 26.

"(4) an assessee to whom the provisions of section 13(2) apply.".

17. In section 27 of the principal Law - Amendment of section 27.

161 (1) in subsection (a), the words "an assessee-for-the-purposes-of-this- Law" shall be replaced by the word "there" and the words "an initial de• duction for cash registers" shall be inserted after the words "under any law, except";

(2) in subsection (b)(1) -

(a) the words "except structures used in agriculture" shall be inserted after the words "any other structures" in item b;

(b) the words "to which paragraphs (3), (4) and (5) do not apply" shall be inserted after the word "vehicles" in item d;

(3) the following paragraphs shall be added at the end:

"(3) in respect of a new lorry or bus imported in the period of ap• plication of this Law and in respect of a new work vehicle acquired in or after the tax year 1983, the rates of depreciation shall be as follows:

(a) in the first year 30 per cent

(b) in each of the next three years 20 per cent

(4) in respect of a new lorry or bus assembled in Israel whose added value resulting from production is at least 20 per cent, and which was acquired in the period of application of this Law, the rates of depreciation shall be as follows:

(a) in the first year 35 per cent

(b) in the second year 25 per cent

(d) in the fifth year 10 per cent

(5) in respect of a lorry or bus acquired before the determining date, the rate of depreciation in the tax year 1982 shall be 25 per cent: Provided that the depreciation permitted for deduction shall not exceed the balance of the original cost.".

Amendment of 18. In section 29 of the principal Law - section 29.

162 (1) at the end of subsection (a)(1), there shall be added the words: "For this purpose, "Individual" includes a partnership of individuals, a small company as referred to in section 1(H)(2) and a small company within the meaning of section 76 of the Ordinance which is required to keep its books in accordance with Schedule Five of the Income Tax (Keeping of Account- Books) Directions, 5733 19731; if a small company to which the provisions of this paragraph apply does not file an inflationary ad• justment return, the provisions of section 20 shall not apply to it";

(2) in subsection (c), the paragraph-mark "(1)" shall be inserted after the subsection-mark "c", the words "under section 8" shall be replaced by the words "under section 7", the words "Provided that if a return, be• ing a self-assessment, is amended in accordance with the provisions of this subsection this shall not stop the return from being a self-assess• ment" shall be added at the end of paragraph (1) and the following para• graph shall be added thereafter

"(2) an assessee who disputes amendments made under paragraph (1) may only contest them before the Assessing Officer on the ground that he is not required to file an inflationary adjustment re• turn; the provisions of sections 153 to 158 of the Ordinance shall apply to the Assessing Officer's decision on the contestation.";

(3) in subsection (d), the words "Subject to the provisions of this sec• tion" shall be inserted before the words "an inflationary adjustment re• turn shall be treated";

(4) the following subsection shall be added after subsection (d):

"(e) Where a person's books have been found unacceptable and no more contestation or appeal lies against that finding, and he has filed a return being a self-assessment, the Assessing Officer may apply the provisions of sections 15, 16 and 17 to the return, but this shall not stop the return from being a self-assessment.

(0 (1) Where the Assessing Officer considers that an inflation• ary adjustment return which is part of a self-assessment is not correct on the face of it, he may, before sending a notice of the amount of the tax due according to the return, request the as• sessee to amend the self-assessment within sixty days; the Assessing Officer may extend the time, but not beyond the

Koveti Ha-Takkanot of 5733, p. 626. legal time for the filing of the return under section 131 of the Ordinance for the year in which the return was filed.

(2) If the assessee does not amend the self-assessment in ac• cordance with the request of the Assessing Officer, and it is subsequently determined in the assessment that he is liable to a tax differential apparent from the request, and the Commis• sioner finds that the deficiency does not arise from a legal problem, the assessee shall, in addition to the tax differential due from him, be liable to an additional amount of tax equal to one quarter of the said tax differential (such amount here• after in this section referred to as "additional tax").

(3) Additional tax shall be treated as a tax debt created at the end of the tax year to which the self-assessment relates.

(4) The imposition of additional tax may be contested or ap• pealed against after an assessment or order has been issued in consequence of the self-assessment, and the provisions of sec• tion 153 to 158 of the Ordinance shall apply. If it is deter• mined that there were indeed deficiencies that required an amendment of the self-assessment and that the assessee has not amended it upon the request of the Assessing Officer, the court which hears the appeal may reduce or cancel the addi• tional tax if it finds that the deficiency arose from a problem calling for legal clarification.

(5) In this subsection, "Assessing Officer" does not include an Assistant Assessing Officer or a Chief Collector.".

Amendment of 19. In section 32(b) of the principal Law - section 32. (1) in paragraph (1), the words "and a moshav shitufi (smallholders' collective settlement)" shall be inserted after the words "in respect of a kibbutz"; (2) in paragraph (2), the words "or a kfar shitufi (collective village)" shall be replaced by the words "a kfar shitufi (collective village), a yishuv kehillati kafri (rural community settlement) or an agricultural cooperative society classified by the Registrar as a society for agricul• tural purposes, an agricultural society or an agricultural and general so• ciety, on condition that all the activity of the society consists in the holding of property and provision of services in agriculture for its members and that at least 90 per cent of its members are inhabitants of the setdement concerned", and the words "for this purpose, a settlement

164 is a settlement or collective settlement within the meaning of the Local Councils (Regional Councils) Order, 5718-19581, or a region whose inhabitants are a municipality as referred to in section 2 of the Munici• palities Ordinance2" shall be added at the end;

(3) in paragraph (3), the words "in plantations or" shall be inserted after the words "and invested by him".

20. In section 34 of the principal Law - Amendment of section 34 (1) in paragraph (1), the words "after adjustment" shall be inserted after the words "shall be deducted from the income"; (2) in paragraph (2), the words "adjusted in accordance with the provi• sions of section 5(c)" shall be inserted after the words "the balance of an added amount shall be set off.

21. In section 35 of the principal Law - Amendment of section 35. (1) in paragraph (1), the mark "(a)" shall be inserted after the words "shall not apply to" and the following subparagraph shall be added after subparagraph (a): "(b) a diamond dealer, being an individual, who keeps in foreign currency the books relating to his income from his diamond busi• ness, in respect of his income from the said business, as regards preferred loans he had on the 31st March, 1982, or acquired there• after with moneys of the consideration received from the following:

(1) the sale of loans as aforesaid;

(2) the sale of assets received by way of inheritance or as a gift;

(3) the sale of assets he had before the 1st April, 1982, except preferred loans and assets used in obtaining his income from his said business;

all on condition that within ninety days from the publication of the Income Tax (Taxation under Conditions of Inflation) (Amendment No. 3) Law, 5744-1984, he presents to the Assessing Officer a re• turn specifying the preferred loans he had on the 31st March, 1982,

1) Kovetz Ha-Takkanol of 5718, p. 1259. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 8, p. 197; LSI vol. I, p. 247.

165 and, in respect of the tax years beginning with the tax year 1982, together with the return under section 131, a return specifying the loans he had at the beginning of the tax year and the changes which occurred therein in the course of the tax year; the said returns shall be filed on a form prescribed by the Commissioner;";

(2) the following paragraph shall be added at the end:

"(4) section 91 of the Ordinance shall be read as if the following subsection were added at the end:

"(h) Notwithstanding the provisions of subsection (f), upon a sale of goodwill by an assessee-for-the-purposes- of-this-Law, within the meaning of the Taxation under Conditions of Inflation Law, the inflationary amount in respect of a part of the goodwill not paid for shall be the amount referred to in paragraph (2) of the definition of "inflationary amount" accumulated up to the determining day, within the meaning of the said Law, and the tax on the capital gain shall not exceed 35 per cent thereof.".

Amendment of 22. In the First Schedule to the principal Law - First Schedule. (1) in the part headlined "Equity Capital" -

(a) the words "and Amuta (non-profit society)" shall be added after the word "Company" in the heading of section 1;

(b) in section \{\)(b), after the words "the State or the National Institutions", there shall be inserted the words "and an additional amount of 25 per cent of the amounts of grants as aforesaid made in respect of depreciable unprotected assets after the publication of the Income Tax (Taxation under Conditions of Inflation) (Amendment No. 3) Law, 5744-1984 (hereinafter referred to as "Amendment No. 3");

(d) in section 1(1)(/), the words "an interest-free loan received from a shareholder of the company, being an individual or con• nected company" shall be replaced by the words "in the tax year 1982, an interest-free loan received from a shareholder of the com• pany being an individual or from a connected company", and the words "there shall also be regarded as connected companies a kib-

166 but! and a ta'agid kibbutzi (collective body corporate) as defined in the Income Tax Regulations (Taxation under Conditions of Infla tion) (Equity Capital and Protected Assets in a Kibbutz), 5743- 1983" shall be added at the end;

(e) in section l(l)(h), after the words "the State or the National In stitutions", there shall be inserted the words "and an additional amount of 25 per cent of the amounts of grants as aforesaid made in respect of depreciable unprotected assets after the publication of Amendment No. 3";

(/) in the heading of section 2, the words "Moshav Shitufi" (Smallholders' Collective Settlement) etc." shall be inserted after the word "Kibbutz";

(g) in section 3(1), after the words "including interest and fines", there shall be inserted the words "but not including an amount de ducted at source from dividend received by the partnerhsip and tax subtracted under section l(20)(e)";

(h) in section 4(1), after the words "including" interest and fines", there shall be inserted the words "but not including an amount de ducted at source from dividend received by the business owner and tax subtracted under section l(20)(e)";

(i) in section 5, in the definition of "the average annual value of withdrawals", the words "except credit entries in the account of the business owners" shall be replaced by the words "except credit en tries in the account of the business owner or the accounts of the partners, as the case may be";

(2) in section 2 of the part headlined "Restrictions as to Determination of Equity Capital"-

(a) in paragraph (2A), the words "or let" shall be inserted after the word "rented";

(b) in the opening passage of paragraph (3A), the words "of sub paragraphs (a) to (e)" shall be replaced by the words "of subpara graphs (a) to (d)";

(1) the words "amounts of tax overpayments refunded to shall be replaced by the ׳(the assessee" in subparagraph (d words "amounts of tax deducted in an assessment as aforesaid"; (2) subparagraph (e) and the closing passage, beginning with the words "for the purposes of this paragraph", shall be deleted;

(d) the following paragraph shall be inserted after paragraph (3A):

"(3B) there shall be added to the equity capital a negative difference, within the meaning of paragraph (3A) and subject to subparagraphs (a)xo(d) thereof, arising out of an assessment for the tax year 1981, in the amount of the tax from the payment of which the assessee was ex• empted by reason of the deduction under the Income Tax (Special Deductions by Reason of Inflation) (Temporary Provisions and Amendment of Laws) Law, 5742-19821, provided that the said difference exceeds the amount of the tax from the payment of which the assessee was ex• empted as aforesaid;

(3C) for the purposes of paragraphs (3A) and (3B) -

"assessment" means an assessment under section 145 (a)(1) of the Ordinance, or an assessment or or• der for the said years, which on the date of the filing of the return for the tax year in respect of which the return is filed was no longer subject to contestation or appeal;

"allocation-for-tax" means an allocation for income tax or appreciation tax but does not include interest and fines in respect of a tax debt;".

Amendment of 23. In the Second Schedule to the principal Law - Second Schedule. (1) in paragraph (1), the words "or other allocation by an employer in favour of his employees under em! 'oyment agreements" shall be deleted; (2) in paragraph (3), the words "for the transport of passengers or goods or a private vehicle" shall be deleted;

(3) the following shall be added at the end of paragraph (10): "as well as tax overpaid by an assessee being a body of persons not liable to tax under section 2(1) of the Ordinance in respect of interest, if the over• payment relates to tax due under an assessment according to section

1) Sefer Ha-Chukkim of 5742, p. 208; LSI vol. XXXVI, p. 219.

168 145(a)(1) of the Ordinance or under an assessment or order which on the date of the filing of the return for the tax year in respect of which the return is filed was no longer subject to contestation or appeal, as the case may be.".

24. In the Income Tax Ordinance - Amendment of Income Tax (1) the following definition shall be inserted after the definition of Ordinance, "month" in section 1: ""Taxation under Conditions of Inflation Law" means the Income Tax (Taxation under Conditions of Inflation) Law, 5742-1982";

(2) in section 18, subsection (d) shall be replaced by the following subsection:

"(d)(1) In this section -

"work unit" -

(1) means a structure the duration of whose production exceeds one year, including its compo• nents the duration of whose production exceeds one year, and includes works as referred to in paragraph (2) which constitute a part of the structure, such structure, if it is a capital asset, not having begun to be used in producing income in the first half of the tax year or special period of assessment, all whether the income from the sale is income under section 2(1) or is capital gain or appreciation;

(2) means works of excavation, sewerage or road or highway construction, and earthworks, the duration of whose execution exceeds one year;

"interest expenses" means interest and linkage differen• tials permitted for deduction under section 17, as well as interest and linkage differentials in respect of capital used for construction or the acquisition of a capital asset, less income from interest and linkage differentials on loans granted to a financial institution;

"other income" means income other than from the sale of a work unit or of land or of a capital asset not being un• protected traded securities as defined in the Taxation under Conditions of Inflation Law, and other than from interest

169 and linkage differentials on loans granted to a banking institution; in the case of income from securities as aforesaid, there shall only be reckoned as other income the amount of a change in their value under the said Law;

־ financial institution" means"

(1) a company or cooperative society carrying on the receipt of monetary deposits on current account in order to make payments therefrom upon demand by cheque;

(2) a company lawfully using the word "bank" as a part of its name, other than a company whose name refers to a company or cooperative society to which paragraph (1) applies;

"management expenses and general expenses" means any expense which does not come within the definition of interest expenses and which the assessee is not accus tomed to attribute directly to a work unit or to land or other income.

(2) Where, in a particular tax year, an assessee whose business is the construction of work units had, or was producing, work units or had land being trading stock, then the management expenses and general ex penses, and the interest expenses, he had in that tax year shall be at tributed to every work unit or unit of land, as follows:

(a) there shall be attributed to any work unit such part of the management expenses and general expenses as bears to the whole thereof the same proportion as the amount of the expenses incurred by the assessee in the tax year in the production of that work unit bears to the whole of the expenses incurred by him in the tax year in the production of all the work units, with the addition of the amount of the other expenses he had in the tax year;

(b) (1) there shall be attributed to any work unit or land unit such part of the interest expenses as bears to the whole thereof the same proportion as the whole of the cumulative expenses in curred by the assessee up to the end of the tax year in the pro duction of that work unit or in the acquisition of that land bears to the whole of the cumulative expenses incurred by him up to the end of the tax year in the production of all the work units and in the acquisition of all the lands, with the addition of the amount of the other expenses he had in the tax year;

for this purpose, "expenses of the production of a work unit and the acquisition of land" includes expenses to be attributed to a work unit and to land under this section up to the end of the preceding tax year,

(2) the balance of the interest expenses not attributed under paragraph (1) shall be permitted for deduction in such manner that such part thereof as bears to the whole thereof the same proportion as the preferred income, within the meaning of section 18(c), bears to the whole of the other expenses is as cribed to the said preferred income.";

(3) in section 19(b) -

(1) in paragraph (1), after the words "in the tax year 1981 - 100 ־ per cent", there shall be inserted the words "in the tax year 1982 110 per cent";

(2) in paragraph (2), after the words "in the tax year 1981 - 40 per ־ cent", there shall be inserted the words "in the tax year 1982 40 per cent";

(3) the following paragraph shall be added at the end:

"(4) the Minister of Finance may prescribe rates for the purposes of paragraphs (1) and (2) in respect of the tax year 1983 and subsequent tax years: Provided that the rate for the purposes of paragraph (1) shall not, in respect of any tax year, exceed 90 per cent of the rate of increase of the index in that tax year and that the rate for the purposes of paragraph (2) shall not, in respect of any tax year, be less than 30 per cent of the rate of increase of the index in that tax year.";

(4) in section 88, in the definition of "index", the words "published from time to time" shall be replaced by the words "as last published before the date under reference".

25. (a) Sections l(2)(a)(2), l(3)(a)(4), 1(6), 1(7), 3(2), 4(1), 4(3), 7(3), Application and U 19(3), 23(2) and 23(3) shall apply in respect of the tax year 1983 and subse- £$j^? quent years.

(b) Section 4(2) shall apply to the tax year 1982 and subsequent years;

171 however, in respect of the tax year 1982, the section shall be read as if the words "immovable property of an individual, or of a small company within the meaning of section 76 of the Ordinance, which began to be used" were replaced by the words "an asset which began to be used".

(c) Section 6 shall apply from the tax year 1982: Provided that an assessee being a body of persons which had losses from a business that were set off by the end of the tax year 1982 against income not chargeable with company tax may cancel the set-off if within sixty days from the date of publication of this Law he files an amending return as required by the cancellation and pays tax in respect of the preferred income which he had in the years to which the cancellation relates, with the addition of 39 per cent of the amount of the interest and linkage differentials and interest in respect of the tax with which he had not been charged in respect of the said income; the interest and linkage differentials and interest paid by him shall not be permitted for deduction.

(d) For the purposes of the amendment of section 20(a) of the principal Law, which limits the rate of the income from a change of value to 25 per cent, section 13(1) shall apply in respect of the tax year 1984.

(e) For the purposes of paragraph (a) of the definition of "controlling shares" in section 20(c)(1) of the principal Law, as amended by this Law, section 13(2) shall apply from the tax year 1982; however, for the purposes of the tax year 1982, the definition shall be read with the following modifications:

(1) the words "at the beginning of the tax year" shall be deleted;

(2) the words "for the whole of the tax year" shall be inserted after the words "to regard them as a protected asset":

Provided that this amendment shall not be regarded as evidence of the law that existed previously.

(f) In respect of a small company required to keep its books in accor• dance with the Fifth Schedule of the Income Tax (Keeping of Account- Books) Directions, 5733-1973, section 18(1) shall apply from the tax year 1983:

Provided that if a company as aforesaid elects not to file an inflationary adjustment return and it has a balance of a deduction for capital preservation or a balance of an added amount, such balance shall, after adjustment, be re• garded as a loss or income from a business, as the case may be. (g) Sections 13(2)(c), 13(3), 13(4), 22(l)(b) and 22(l)(e) shall apply from the date of the publication of this Law.

(h) Sections 21(2) and 24(4) shall apply from the 28th Adar Bet, 5744 (1st April, 1984).

(i) The other sections shall apply in respect of the tax year 1982 and subsequent years.

(j) For the purposes of the definition of "equity capital", where a loan referred to in section 1(1)(/) of the First Schedule to the principal Law, in the part headlined "Equity Capital", has been received which before the amend• ment by this Law was regarded as equity capital in the tax year 1983 and which, not later than sixty days from the date of publication of this Law, became a capital note or debenture, or paid-up share capital, coming within the definition of "equity capital", then such capital note, debenture or paid-up share capital shall be regarded as equity capital from the beginning of the tax year 1983, and where by the end of the tax year 1982 a capital note, or debenture, which before the coming into force of the Income Tax (Taxation under Conditions of Inflation) (Amendment) Law, 5742-1982, came within the definition of "equity capital" had been issued for a period of seven years or more, then the part of the capital note whose period of redemption is more than three years later than the beginning of the tax year 1982 shall be re• garded as equity capital from the beginning of the tax year 1983.

(k) An assessee who by reason of the provisions of this Law is charged with additional tax -

(1) shall be exempt, in the case of a body of persons, from 61 per cent, and in the case of an individual, from 60 per cent of the inter• est and linkage differentials and interest on that tax in respect of the period from the end of the tax year for which the additional tax is payable to the expiration of sixty days from date of publication of this Law: Provided that the interest and linkage differentials and in• terest paid by him shall not be permitted for deduction;

(2) shall, within sixty days from the publication of this Law, file a return specifying the tax due according to the principal Law be• fore its amendment by this Law and the tax due according to this Law and shall, upon filing the said return, pay the amounts due from him; this provision shall not delay the filing of the return under section 131 of the Ordinance.

(3) For the purpose of the reduction, in accordance with liability to tax under the provisions of the principal Law before its amend• ment by this Law, of the amounts of advance payments under sec• tion 190(a)(2) in a particular tax year, the amount of additional tax due from the assessee under the provisions of this Law shall not be taken into account.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance

CHAIM HERZOG President of the State (No. 50)

STATE LOAN (AMENDMENT No. 3) LAW, 5744-1984*

1. In section 1 of the State Loan Law, 5739-19791, (hereinafter referred to Amendment of section 1. as "the principal Law"), the expression "50,000,000,000 shekalim" shall be replaced by the expression "150,000,000,000 shekalim".

2. In section 7 of the principal Law, the expression "75,000,000,000 Amendment of section 7. shekalim" shall be replaced by the expression "200,000,000,000 shekalim".

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

* Passed by the Knesset on the 24th Adar Bet, 5744 (28th March, 1984) and published in Sefer Ha-Chukkim No. 1115 of the 2nd Nisan, 5744 (4th April, 1984), p. 127; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1677 of 5744, p. 209. 1) Sefer Ha-Chukkim of 5739, p. 112 - LSI vol. XXXHI, p. 136; Sefer Ha-Chukkim of .LSI vol. XXXV, p. 84; Sefer Ha-Chukkim of 5743, p. 48 - LSI vol ־ p. 86 ,5741 XXXVII, p. 49.

175 (No. 51)

DEFAMATION (PROHIBITION) (AMENDMENT No. 5) LAW, ״5744-1984

Replacement of 1. Section 11 of the Defamation (Prohibition) Law, 5725-19651 (herein- sectionj il. after referred to as "the principal Law"), shall be replaced by the following , section: i "Liability for 11. (a) Where any defamatory matter is published in a publication in communication medium, there shall be criminally and communication medium. civilly liable for the publication the person who brought that matter to the communication medium and thereby caused its publication, the editor of the communication medium and the person who actually decided upon the publication, and civil liability shall be borne also by the person responsible for the communication medium.

(b) In a criminal action under this section, it shall be a good defence for the editor of the communication medium that he took reasonable steps to prevent publication of the defamatory matter or that he did not know of its publication.

"communication medium" means a newspaper within the meaning of the Press Ordinance2, as well as radio and television broadcasts to the public;

"editor of communication medium", in the case of a newspaper, includes an acting editor, and in the case of a broadcast, includes the editor of the programme in which the publication is made;

Passed by the Knesset on the 23rd Adar Bet, 5744 (27th March, 1984) and published in Sefer Ha-Chukkim No. 1115 of the 2nd Nisan, 5744 (4th April, 1984), p. 128; the Bill and an Explanatory Note were published in Hatza'ol Chok No. 1660 of 5744, p. 140. Sefer Ha-Chukkim of 5725, p. 240; LSI vol. XIX, p. 254; Sefer Ha-Chukkim of 5727, p. 133; LSI vol. XXI, p. 132; Sefer Ha-Chukkim of 5739, p. 82; LSI vol. XXXIH, p. 99. Laws of Palestine vol. H, p. 1214 (English Edition).

176 "person responsible for the communication medium", in the case of a newspaper, means the publisher, and in the case of radio and tele• vision broadcasts, means the person responsi• ble for their taking place.

2. In section 15 of the principal Law - Amendment of section 15. (1) paragraph (11) shall be replaced by the following paragraph:

"(11) the publication was merely the delivery of information to the editor of a communication medium or his representative in or• der that he might examine whether to publish it in the communication medium;";

(2) the following paragraph shall be added after paragraph (11):

"(12) the publication was made in a radio or television broadcast not recorded in advance and the accused or defendant was the person responsible under paragraph 11 but did not know and could not have known of the intention to publish defamatory matter.".

3. In section 17 of the principal Law - Amendment of section 17. (1) in subsection (a), the opening passage up to the words "from the receipt of the demand" shall be replaced by the words "Where defamatory matter has been published in a communication medium, the plea of good faith shall not avail the editor thereof, the person who actually de• cided upon the publication or the person responsible for that communi• cation medium if, having been asked by the injured party or by one of the injured parties to publish a correction or denial on behalf of that party, he has not published the correction or denial, under a suitable headline, in the same place, on the same scale, with the same degree of prominence and in the same manner as the defamatory matter was pub• lished and within a reasonable time from the receipt of the demand";

(2) in subsection (b), the words "If the newspaper appears" shall be re• placed by the words "If the publication is made in a newspaper which appears".

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

111 (No. 52)

STATE COMPTROLLER (AMENDMENT No. 13) LAW, ״5744-1984

Amendment of 1. In section 20(d) of the State Comptroller Law (Consolidated Version), section 20. 5718-19581, the words "under subsection (c)" shall be replaced by the words "under subsection (b) or (c)". , — -—

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of the State

* Passed by the Knesset on the 24th Ada- Bet, 5744 (28th March, 1984) and published in Sefer Ha-Chukkim No. 1115 of the 2nd Nisan, 5744 (4th April, 1984), p. 129; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1661 of 5744, p. 142. 1) Sefer Ha-Chukkim of 5718, p. 92 - LSI vol. XII, p. 107; Sefer Ha-Chukkim of 5735, p. 58 - LSI vol. XXDC, p. 68; Sefer Ha-Chukkim of 5744, p. 192 - supra, p. 46.

178 (No. 53)

DISSOLUTION OF TENTH KNESSET LAW, 5744-1984*

1. The Tenth Knesset shall dissolve itself before the completion of its pe- Dissolution of riod Of tenure. Tenth Knesset.

2. The elections to the Eleventh Knesset shall be on Monday, the 23rd Elections to Tammuz, 5744 (23rd July, 1984). Eleventh Knesset•

3. This Law shall come into force on the date of its adoption by the Knes- Commencement, set.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of the State

* Passed by the Knesset on the 2nd Nisan, 5744 (4th April, 1984) and published in Sefer Ha-Chukkim No. 1116 of the 10th Nisan, 5744 (12th April, 1984), p. 132; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1680 of 5744, p. 228.

179 (No. 54)

ELEVENTH KNESSET ELECTIONS 5744-1984״ ,TEMPORARY PROVISIONS) LAW)

Temporary 1. The Knesset Elections Law (Consolidated Version), 5729-19691 provisions. (hereinafter referred to as "the Elections Law") shall apply to the elections to the Eleventh Knesset with the modifications indicated in this Law.

Amendment of 2. In section 1 of the Elections Law - section 1. (1) in the definition of "the determining day", the words "in relation to a particular register year, means the 1st Nisan preceding that year" shall be replaced by the words "means the 25th Adar Bet, 5744 (29th March, 1984)";

(2) the definition of "voters' register year" or "register year" shall be replaced by the following definition:

"the 5744 register period" means the period beginning with the 29th Iyar, 5744 (31st May, 1984) and ending with the 14th Av, 5745 (1st August, 1985)".

Replacement of 3. Section 2 of the Elections Law shall be replaced by the following sec section 2. tion:

"Voting only by 2. The right to vote in elections to the Eleventh Knesset virtue of regis vests only in a person registered in the Voters' Register tration in Register of the 5744 register period.".

Amendment of 4. In section 3(a) of the Election Law, the words "than the first day of the section 3. voters' register year in which the elections take place" shall be replaced by the words "than the 23rd Tammuz, 5744 (23rd July, 1984) (hereinafter re ferred to as "the date of the elections to the Eleventh Knesset)".

Amendment of 5. In section 4 of the Election Law, the figure " 1,500" shall be replaced by section 4. the figure "2,500".

* Passed by the Knesset on the 2nd Nisan, 5744 (4th April, 1984) and published in Sefer Ha-Chukkim No. 1116 of the 10th Nisan, 5744 (12th April, 1984), p. 133; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1680 of 5744, p. 229. 1) Sefer Ha-Chukkim of 5729, p. 103; LSI vol. XXm, p. 110; Sefer Ha-Chukkim of 5743, p. 106; LSI vol. XXXVH, p. 125.

180 6. In section 13 of the Election Law - Amendment of section 13. (1) subsection (a) shall be replaced by the following subsection:

"(a) Not later than the 13th Nisan, 5744 (15th April, 1984), the Central Committee shall, upon the proposal of the Minister of the Interior submitted to it on the 30th Shevat, 5744 (3rd February, 1984), determine the boundaries of the polling districts, including special polling districts under section 12(b).";

(2) subsection (b) shall not apply.

7. Section 26 of the Election Law shall be replaced by the following sec- Replacement of 26׳ don: section

Register. 26. For the 5744 register period, there shall be prepared 5744״ a Voters' Register which shall include every person who on the determining day was an Israeli national and was registered in the Population Registry as a resident, with his address, and whose 18th birthday is not later than the date of the elections to the Eleventh Knesset (such Vot ers' Register hereinafter referred to as "the 5744 Regis ter"). For the purposes of this chapter, "address" includes the indication in the Population Register of the township only.".

8. In section 28 of the Elections Law, subsection (a) shall be replaced by Amendment of the following subsection: section 28.

"(a) For the purpose of preparing the 5744 Register, there shall be pre pared for each polling district a list which shall include every person whose 18th birthday is not later than the date of the elections to the Eleventh Knesset and who on the determining day was an Israeli na tional and was registered in the Papulation Registry as a resident of the district in question.".

9. In section 29 of the Elections law, the words "on the 61st day before the Amendment of determining day" shall be replaced by the words "on the determining day". section 29.

10. Section 31 and 32 of the Elections Law shall not apply. Inapplicability of sections 31 and 32.

11. Section 33 of the Elections Law shall be replaced by the following Replacement of section: section 33.

181 "Exhibition of 33. From the 19th Nisan, 5744 (20th April, 1984) until lists. the 28th Nisan, 5744 (30th April, 1984), the Minister of the Interior shall exhibit the voters' lists for the 5744 Register period, on the ordinary workdays, at all the re gional offices of the Population Registry in order that every person wishing to do so may inspect them.".

Inapplicability 12. Section 34 of the Elections Law shall not apply. of section 34. Amendment of 13. In section 35 of the Elections Law, the words "than the 39th day after section 35. the determining day" shall be replaced by the words "than the 16th Nisan, 5744(18th April, 1984)".

Inapplicability of 14 Sections 36 to 38 of the Elections Law shall not apply. sections 36 to 38.

Amendment of 15. In section 35 of the principal Law, the words "Not later than the 46th section 39. day after the determining day" shall be replaced by the words "not later than the 18th Nisan, 5744 (20th April, 1984)".

Amendment of 16. In section 40 of the Elections Law, the words "Until the 65th day after section 40. the determining day" shall be replaced by the words "Until the 28th Nisan, 5744 (30th April, 1984)".

Replacement of 17. Section 41 of the Elections Law shall be replaced by the following sec section 41. tion:

"Provision as 41. Where, in respect of any person, in the period be to notification tween the determining day and the 28th Nisan, 5744 to Population Registry. (30th April, 1984), notification is made under the Reg istry Law concerning any of the particulars specified in r concerning the death of any person or con׳section 29 v cerning the grant or loss of Israeli nationality, such noti fication shall be deemed to be an application or objection duly submitted under section 40.".

Inapplicability 18. Section 42 of the Election Law shall not apply. of section 42.

Amendment of 19. In section 43 of the Elections Law, the words "and of applications under section 43. section 42" shall be deleted.

182 20. In section 44 of the Elections Law, the words "by the 89th day after the Amendment of 44־ determining day" shall be replaced by the words "by the 19th Iyar, 5744 (21st section May, 1984)".\

21. Section 45 of the Elections Law shall not apply. Inapplicability of section 45.

22. In section 46 of the Elections Law, the words "until the 99th day after Amendment of the determining day" shall be replaced by the words "until the 22nd Iyar, section 46. 5744 (24th May, 1984)".

23. In section 49 of the Elections Law, the words "by the 113th day after Amendment of the determining day" shall be replaced by the words "by the 28th Iyar, 5744 section 49. (30th May, 1984)".

24. Section 53 of the Elections Law shall be replaced by the following sec Replacement of section .53. tion:

"Completion 53. By the 29th Iyar, 5744 (31st May, 1984), the Min of lists. ister of the Interior shall correct and complete the voters' lists in accordance with his decisions under section 44 and with judgments under section 49.".

25. Section 54 of the Elections Law shall be replaced by the following sec Replacement tion: of section 54.

"Coming into force 54. The 5744 Register, as corrected and completed under

CQme ^ force Qn ^ 29m ^ sm ^ ^ ״of 5744 Register. sectio (31st May, 1984).".

26. Section 55 of the Elections Law shall be replaced by the following sec Replacement of tion: section 55.

"Delivery of 55. Not later than the 8th Sivan, 5744 (8th June, 1984), 5744 Register. the Minister of the Interior shall deliver to each of the members of the Central Committee the 5744 Register as corrected and completed in accordance with his decisions under section 44, and not later than the 8th Tammuz, 5744 (8th July, 1984) he shall deliver the list of the changes made in the register by virtue of judgments under section 49.".

183 Inapplicability 27. Section 55A of the Elections Law shall not apply. of section 55A.

Amendment of 28. In section 56(a) of the Elections Law, the words "at least 100 days be• section 56. fore election day" shall be replaced by the words "not later than the 15th Iyar, 5744 (17th May, 5744)".

Amendment of 29. In section 57 of the Elections Law - section 57. (1) in subsection (g), the figure "2,500" shall be replaced by the figure "3,500";

(2) subsection (i) shall be replaced by the following subsection:

"(i) A candidates' list, accompanied by the consent of the candi• dates in writing or by telegram, shall be submitted to the Central Committee on the 29th Iyar, 5744 (31st May, 1984). The Central Committee shall publish a notice of the hour and place of submis• sion not later than the 23rd Iyar, 5744 (25th May, 1984) in such manner as it shall determine.".

Amendment of 30. In section 60 of the Elections Law, the words "twenty thousand section 60. shekalim" shall be replaced by the words "five hundred thousand shekalim" and the following shall be added at the end: "Such moneys of the deposit as are returned shall have linkage differentials added to them in accordance with the excess of the index last published before the return over the index last published before the date of the deposit; for this purpose, "index" means the consumer price index published by the Central Bureau of Statistics.".

Amendment of 31. In section 62 of the Elections Law, the words "not later than the 29th section 62. day before election day" shall be replaced by the words "iu . later than the 13th Nisan, 5744 (13th June, 1984) and the words "not later than the 24th day before election day" shall be replaced by the words "not later than the 19th Sivan, 5744 (19th June, 1984)".

Amendment of 32. In section 63 of the Elections Law, the words "not later than the 20th section 63. day before election day" shall be replaced by the words "not later than the 24th Sivan, 5744 (24th June, 1984)".

Amendment of 33. In section 64 of the Elections Law - section 64. (1) in subsection (a), the words "not later than the 20th day before election day" shall be replaced by the words "not later than the 24th Sivan, 5744 (24th June, 1984)" and the words "not later than the 18th

184 day before election day" shall be replaced by the words "not later than the 26th Sivan, 5744 (26th June, 1984)";

(2) in subsection (b), the words "not later than the 14th day before election day" shall be replaced by the words "not later than the 1st Tammuz, 5744 (1st July, 1984)".

34. In section 66 of the Elections Law, the words "together with four fifths Amendment of of the amount added by virtue'of the provision of section 60" shall be added section 66. at the end. !

35. In section 68 of the Elections Law, subsection (c) shall be replaced by Amendment of the following subsection: section 68.

"(c) Not later than the 13th Nisan, 5744 (15th April, 1984), the Central Committee shall, upon the proposal of the Minister of the Interior submitted to it on the 30th 'shevat, 5744 (3rd February, 1984), prescribe the locations of the pollinglstations for the 5744 register period.".

36. In section 74 of the Elections Law, the words "shall punch the certifi• Amendment of cate or booklet" shall be deleted. section 74.

37. In section 78(a) of the Elections Law, in paragraph (6), the words "later Amendment of than the 7th day" shall be replaced by the words "later than the 2nd day". section 78.

38. In section 79 of the Elections Law, subsection (c) shall be replaced by Amendment of the following subsection: section 79.

"(c) (1) The District Committee shall enter the results of the count of the votes by the Polling Committee, in two copies, on a form prescribed by regulations.

(2) Immediately upon completion of the entry and before sum• marising the count of the votes under paragraph (3), the District Committee shall transmit one copy of the form referred to in para• graph (1), with the entire election material, to the Central Committee.

(3) The District Committee shall summarise the count of the votes, shall prepare a record of its work and shall transmit the summary and record to the Central Committee.".

39. Section 85 of the Elections Law shall be replaced by the following Replacement of section: section 85.

185 "Forfeiture or 85. (a) Where a candidates' list submitted by voters return of deposit. has not obtained the percentage of votes prescribed in section 81(a), the deposit made upon its submission shall be forfeited to the Treasury.

(b) A deposit not forfeited under subsection (a) shall immediately after publication of the elections resuls in Reshumot be returned to the depositor, together with the amount added by virtue of the provision of section 60.".

Amendment of 40. In section 89 of the Elections Law, in the definition of "soldiers", the section 89. words "or the Prison Service" shall be added at the end.

Amendment of 41. In section 91(a) of the Elections Law, the words "or prison officer's section 91. pass" shall be added at the end.

Amendment of 42. In section 95 of the Elections Law - section 95. (1) in subsection (a), the words "Not later than 45 days before election day" shall be replaced by the words "Not later than the 25th Iyar, 5744 (27th May, 1984)";

(2) in subsection (e), the words "and shall punch such certificate or booklet" shall be deleted.

Amendment of 43. In section 99 of the Elections Law, the words "on the eighth day" shall section 99. be replaced by the words "on the twelfth day".

Amendment of 44. In section 107(b) of the Elections Law, the words "and shall punch the section 107. certificate or booklet" shall be deleted

Amendment of 45. In section 114 of the Elections Law, the words "the fifth day" shall be section 114. replaced by the words "the second day".

Notice to voter. 46. Not later than the 8th Tammuz, 5744 (8th July, 1984), the Minister of the Interior shall send to every voter registered in the 5744 Register, by post, a notice of his being so registered. The notice shall state the voter's surname, first name, address and identity number, the number of the Polling District, the locality in which the Polling District is situated and the location of the polling station.

186 47. Sections 16 to 23G of the Local Authorities (Elections) Law, 5725- Inapplicability of

1 certain sections of 1965 , shall not apply for the purposes of the 5744 Register. Local Authorities (Elections) Law.

48. The 5744 Register shall be in force until the 14th Av, 5745 (1st Au• Transitional gust, 1985) and shall take the place of the Voters' Register which according provision. to the provisions of the Elections Law should have come into force on the 15th Av, 5744 (13th August, 1984).

49. The provisions of section 11 of the Knesset Elections (Consolidated Application of Version) (Amendment) Law, 5729-19692, and the provisions of the Knesset provisions. Elections (Temporary Provisions) Law, 5730-19693, shall apply mutatis mutandis to the elections to the Eleventh Knesset.

50. This Law shall come into force on the date of its adoption by the Knes• Commencement. set

YITZCHAK SHAMIR YOSEF BURG Prime Minister Minister of the Interior CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5725, p. 248; LSI vol. XIX, p. 261; Sefer Ha-Chukkim of 5743, p. 106; LSI vol. XXXVH, p. 164. 2) Sefer Ha-Chukkim of 5729, p. 196; LSI vol. XXJU, p. 211. 3) Sefer Ha-Chukkim of 5730, p. 2; LSI vol. XXIV, p. 5.

187 (No. 55)

INVALIDS (PENSIONS AND REHABILITATION) (AMENDMENT No. 13) LAW, 5744-1984*

Addition of section 1. In the Invalids (Pensions and Rehabilitation) Law (Consolidated Ver• 7C and 7E. sion), 5719-19591, the following section shall be inserted after section 7B:

"Addition for 7C. An invalid aged fifty-five years or over whose inva• invalid aged fifty- lidity, being a combined functional invalidity of posture five or over. and walking, of a type designated by regulations, is of a degree not less than fifty per cent shall be paid an addi• tion to his pension in accordance with his age, at rates and on conditions prescribed by regulations, provided that the aggregate of the pension and the additions under this Law, except sections 7A(a) and 7(d), shall not exceed the determining wage. Regulations under this section shall require approval by the Committee of Labour and Social Affairs of the Knesset.

! Special addition in 7D. Where an invalid aged fifty years or over who meets consequence of early retirement. the requirements of section 7C retires completely from his work or calling and a physician appointed by the Minister of Defence' determines, with the approval of a pensions officer, that he is incapable of doing any work or pursuing any calling, he shall be paid an addition to his pension, in accordance with his age, not exceeding thirty-seven per cent of the salary payable to a State em• ployee whose salary grade is Tet-Zayin of the uniform grading, all at such rates and in such manner as shall be prescribed by regulations with the approval of the Labour and Social Affairs Committee of the Knesset.

* Passed by the Knesset on the 13th Iyar, 5744 (15th May, 1984) and published Sefer Ha-Chukkim No. 1117 of the 22nd Iyar, 5744 (24th May, 1984), p. 140; the Bill and an Explanatory Note were published in Halza'ot Chok No. 1643 of 5744, p. 18. 1) Sefer Ha-Chukkim of 5719, p. 276; LSI vol. XIU, p. 315; Sefer Ha-Chukkim of 5742, p. 272; LSI vol. XXXVI, p. 304.

188 Restriction. 7E. Sections 7C and 7D shall not apply to an invalid in receipt of a pension under section 6 or section 7(a) to (c) or to an invalid in receipt of a pension under section 43(b)(1) and the regulations thereunder.".

2. This Law shall have effect from the 28th Adar Bet, 5744 (1st April, Commencement. 1984).

YITZCHAK SHAMIR MOSHE ARENS Prime Minister Minister of Defence CHAIM HERZOG President of the Slate

189

I (No. 56)

5744-1984״ ,MAINTENANCE OF CLEANLINESS LAW

Definitions. 1. In this Law -

"vehicle scrap" means vehicles discarded on account of age or on being dis mantled or declared a total loss, as well as frames or parts of any such vehi cles;

"throwing" includes flinging, pouring, abandoning or relinquishing;

"beverage container" means a receptacle for one-time use, made of metal, glass, plastic, paper or any other material, in which any beverage, other than milk or a milk product, is marketed, whether such receptacle is empty or full;

"waste" includes food remnants, peel, paper, bottles, boxes, tins, cartons, packages of any sort, scrap, pieces of wood, planks, rags, cigarette butts and refuse of any kind, as well as anything else likely to cause uncleanliness or untidiness, but does not include building debris and vehicle scrap;

"building debris" means materials and remnants of materials used for building or in connection with building operations and includes piles of earth and parts of wrecked structures;

"vehicle", "commercial vehicle" and "public vehicle" have the same respec tive meanings as in the Traffic Ordinance1;

"public domain" means any place which the public are permitted to use or cross over or actually use or cross over.

"local authority" does not include a local committee.

Prohibition of 2. No person shall throw any waste, building debris or vehicle scrap into defilement and the public domain or from the public domain into the private domain, or de of throwing away waste. file the public domain.

* Passed by the Knesset on the 27th Iyar, 5744 (29th May, 1984) and published in Sefer Ha-Chukkim No. 1118 of the 7th Nisan, 5744 (7th June, 1984), p. 142; the Bill and an Explanatory Note were published in Hatza'ot Chok No. No. 1665 of 5744, p. 164. 1) Dinei Medina! Yisrael (Nusach Chadash) No. 7, p. 173; NV vol. I, p. 222; Sefer Ha-Chukkim of 5744, p. 30 - supra, p. 36.

190 3. No person having charge of a minor under thirteen years of age who is Responsibility for with him in a vehicle shall let such minor throw any waste out of the vehi• minors in vehicle. cle.

4. (a) Where it is proved that any waste or building debris was thrown Presumptions as to throwing waste or out of a vehicle, then, for the purposes of section 2, the owner of the vehicle building debris out or the person responsible for the vehicle shall be deemed to have thrown the of vehicle. waste or building debris unless he proves that he did not do so and who was in control of the vehicle at the time of throwing or that the vehicle had been taken without his consent.

(b) Where it is proved that any waste or building debris was thrown out of a vehicle, then, for the purposes of section 2, the person who was driving the vehicle at the time shall be deemed to have thrown the waste or building debris unless he proves that he did not do so and who in fact did; this provision shall not apply to a person driving a bus or a public vehicle, other than a taxi, or to a person driving a pick-up truck if the waste or build• ing debris was thrown out of the part separate from the driver's cabin.

5. Where any vehicle scrap has been thrown away, then, for the purposes Presumption as to vehicle scrap. of section 2, the owner thereof shall be deemed to have thrown it away un• less he proves that he did not do so and who was in control of the vehicle scrap at the time or that the vehicle scrap was taken without his consent.

6. In every bus or public vehicle or in the part of a pick-up truck separate Duty of affixing from the driver's cabin, the owner or driver of the vehicle shall affix signs in vehicles. conspicuous signs indicating the prohibition of throwing waste from the ve• hicle.

7. (a) Subject to any law, a local authority shall determine sites for the sites for disposal disposal of building debris and vehicle scrap either within or, in coordination of building debris r ° r and vehicle scrap. with the local authority concerned, outside its area. A determination as afore• said may be made by several local authorities jointly and it may be made at the direction of the Minister of the Interior. (b) A local authority may prescribe that a site as referred to in subsec• tion (a) shall be used also for the disposal of scrap other than vehicle scrap. (c) The local authority shall publish a notice of the location of sites determined as aforesaid.

(d) No person shall clear away building debris, scrap or vehicle scrap save to a site as aforesaid.

191 (e) For the purposes of this section, "local authority" means a municipality or a local council.

Power to dispose of 8. (a) A local authority or a person empowered in that behalf by the vehicle scrap. Minister of the Interior (such authority or persor• hereinafter referred to as a "competent authority") may dispose of vehicle scrap thrown away in either the public or the private domain, except scrap situated on the premises of a person in lawful possession thereof or lawfully conducting thereon a busi• ness in vehicle scrap.

(b) A competent authority shall not exercise its power to dispose of any vehicle scrap under this section unless it has requested the owner of pos• sessor thereof, in writing, to clear it away within a period fixed in the request and he has failed to do so and a notice of the intention to dispose of the scrap has been affixed to it in a conspicuous position at least forty-eight hours be• fore the disposal.

(c) Where the owner of the vehicle scrap cannot be identified, the competent authority may dispose of it if it has been in the same place for at least one month and if, in the circumstances of the case, it is reasonable to assume that the owner has given it up because of its little value.

(d) Where any vehicle scrap has been disposed of under subsection (a), the competent authority which disposed of it is entitled to be reimbursed for its expenses by the person to whom a request under subsection (b) was delivered; a certificate by the competent authority detailing those expenses shall be evidence thereof.

Notice on beverage 9. No person shall manufacture, and no importer shall market, any bever• containers. age container unless there is printed or impressed thereon, or on a label af• fixed thereto, a conspicuous notice as to the prohibition of throwing away waste, all as the Minister of Industry and Commerce may prescribe in con• sultation with the Minister of Health.

Cleanliness 10. (a) There is hereby established a "Cleanliness Maintenance Fund"

Maintenance Fund. wJthin the framework of the Ministry of the Interior (hereinafter referred to as "the Fund").

(b) The purpose of the Fund shall be to concentrate monetary resources for the maintenance of cleanliness and the prevention of throwing away waste, including the furtherance and encouragement of educational and infor• mational activities, inspection, and the enforcement of laws for the mainte• nance of cleanliness.

192 (c) The Minister of the Interior shall make regulations as to rules for the operation of the Fund.

(d) The moneys of the Fund shall be earmarked for its purposes only and shall be expended in accordance with the directions of the Minister of the In• terior with the consent of the Minister of Finance.

(e) The moneys of the Fund shall derive from a charge under section 11, fines under section 13, appropriations from the State Budget and contri• butions.

(f) The Minister of the Interior shall report to the Home Affairs and Ecology Committee of the Knesset, at the end of every budget year, on the activities, income and expenditure of the Fund.

11. (a) The Minister of the Interior shall, by regulations, impose a Cleanliness "cleanliness maintenance charge" (hereinafter referred to as "the charge") on maintenance charge. manufacturers and importers of beverage containers; the rate, manner of link• age and modes of collection of the charge shall be prescribed with the consent of the Minister of Finance.

(b) The income from the charge shall be paid into the Fund.

12. (a) The Minister of the Interior shall, for the purposes of this Law, Inspectors and appoint inspectors from among State employees and from among persons cleanliness guards. duly appointed wardens or inspectors under any enactment, as well as from lists of wardens and inspectors submitted to him by associations of towns, municipalities, local authorities, streams and springs authorities, drainage authorities, the Ports Authority, the Aerodromes Authority, the Israel Lands Administration, the Keren Kayemet Le-Yisrael, the National Parks Authority and the Nature Reserves Authority.

(b) An inspector as aforesaid shall have power to investigate offences under this Law; in exercising such power -

1) Laws of Palestine, vol. II, p. 1399 (English Edition); Sefer Ha-Chukkim of 5741, p. 157 - LSI vol. XXXV, p. 173.

193 (1) an inspector shall have the powers of a police officer under section 2 of the Criminal Procedure (Arrest and Searches) Ordinance (New Ver• sion), 5729-19691;

(2) an inspector may exercise all the powers vested in a police officer of the rank of inspector by section 2 of the Criminal Procedure (Evidence) Ordinance2, and section 3 of that Ordinance shall apply to a statement taken down by virtue of such powers.

(c) The Minister of the Interior, or the head of a local authority in re• spect of the area that authority and with the consent of a district commander of the Israel Police, may appoint any person to be a cleanliness guard. A cleanliness guard appointed as aforesaid may, after producing his cleanliness guard certificate, request a person who in his sight commits an offence against this Law to identify himself to him; a person requested to identify himself as aforesaid must do so.

Penalties and 13. (a) A person who contravenes any provision of this Law is liable to a application of fine. moneys of fines. (b) A fine imposed for an offence under this Law shall be paid into the Fund:

Provided that where the fine is imposed by a Court of Local Matters, it shall be paid into the fund of the local authority in whose area the offence was committed.

Order to pay 14. (a) A court which convicts a person of an offence under this Law may

cleaning expenses. m me sentencei m addition to any penalty it may impose, order him to pay the expenses of cleaning if an application therefor is submitted to it by the person who incurred them.

(b) For the purpose of collecting the amount awarded, a decision under this section shall be deemed to be a judgment by the same court in a civil action.

(c) Where more than one person is convicted of an offence, the court may, in the decision under this section, impose the payment of the expenses

1) Dinei Medina! Yisrael (Nusach Chadash) No. 12, p. 284 - NV vol. H, p. 30; Sefer Ha-Chukkim of 5740, p. 116 - LSI vol. XXXIV, p. 130. 2) Laws of Palestine, vol. I , p. 467 (English Edition); Sefer HaChukkim of 5725, p. 53 - LSI vol. XXIX, p. 51.

194 on all or part of them, jointly or severally, or apportion the debt among them, as it may think proper in the circumstances of the case.

(d) Where the.court does not give a substantive decision on an application under this section, such fact shall not affect the right of the per son who incurred the expenses to recover them by an ordinary action.

15. Where an offence under this Law is committed by a body corporate, ev Responsibility of ery person who at the time of its commission is an active director or a part officers of body corporate. ner, other than a limited partner, of the body corporate, or an employee thereof responsible for the matter in question, shall also be guilty of the of fence unless he proves that it was committed without his knowledge and that he took all reasonable measures to ensure compliance with this Law.

16. (a) The Minister of the Interior is charged with the implementation of Implementation this Law and may make regulations as to any matters relating to its imple and regulations. mentation.

(b) Regulations under this Law shall be made with the approval of the Home Affairs and Ecology Committee of the Knesset.

17. This Law shall apply also to the State. Applicability to the State.

18. The provisions of this Law shall be in addition to and not in derogation Saving of laws. of the provisions of any other law.

19. A local authority may make by-laws as to any matter dealt with by this By-laws. Law, except the matters dealt with by sections 9,10 and 11 but including -

(1) the responsibility of the owner of a plot of land for the cleanliness thereof and the assignment of such responsibility also to a person who represents the owner for the purpose of the payment of taxes or in the matter of the commercial utilisation of the plot or the preservation of the value thereof;

(2) the provision that the issue of a certificate under section 324 of the Municipalities Ordinance1 shall be conditional on the payment of any fine imposed under this Law or any by-law made under this section.

1) Dinei Medina! Yisrael (Nusach Chadash) No. 8, p. 197 - NV vol. I, p. 247; Sefer .supra, p. 61 ־ Ha-Chukkim of 5744, p. 49

195 Amendment of 20. The following shall be added at the end of the Second Schedule to the Courts Law. Courts Law, 5717-19571:

"21. Maintenance of Cleanliness Law, 5744-1948."•

Amendment of 21. The following shall be added at the end of the Second Schedule to the Criminal Procedure Criminal Procedure Law (Consolidated Version), 5742-19822: Law. "13. An offence under section 2 of the Maintenance of Cleanliness Law, 5744-1984, committed in the complainant's private domain.".

Repeal of Law. 22. The Maintenance of Cleanliness Law, 5736-19763, is hereby repealed.

Commencement. 23. (a) This Law, except section 9, shall come into force on the expiration of sixty days from the date of its publication. Section 9 shall come into force at the expiration of one year from the date of publication of this Law.

(b) A site as referred to in section 7 shall be determined not later than the expiration of one year from the date of publication of this Law.

YITZCHAK SHAMIR YOSEFBURG Prime Minister Minister of the Interior CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5717, p. 148 - LSI vol. XI, p. 157; Sefer Ha-Chukkim of 5744, p. 82. 2) Sefer Ha-Chukkim of 5742, p. 43 - LSI vol. XXXVI, p. 35; Sefer Ha-Chukkim of 5743, p. 145 - LSI vol. XXXVII, p. 170. 3) Sefer Ha-Chukkim of 5736, p. 269; LSI vol. XXX, p. 264.

196 (No. 57)

EMERGENCY REGULATIONS (PROTECTION OF EDUCATIONAL INSTITUTIONS) (EXTENSION OF VALIDITY) LAW, 5744-1984*

1. The validity of the Emergency Regulations (Protection of Educational Extension of Institutions), 5734-19741 (hereinafter referred to as "the Regulations"), is validity, hereby extended until the 14th Elul, 5745 (31st August, 1985).

2. The Minister of Education and Culture may with the approval of the Power of early revocation. Committee on Education and Culture of the Knesset, at any time, by order published in Reshumot, revoke all or part of the Regulations or restrict powers thereunder.

YITZCHAK SHAMIR ZEVULUN HAMMER Prime Minister Minister of Education and Culture CHAIM HERZOG President of the State

* Passed by the Knesset on the 4th Sivan, 5744 (4th June, 1984) and published in Sefer Ha-Chukkim No. 1118 of the 7th Sivan, 5744 (7th June, 1984), p. 146; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1681 of 5744, p. 251. 1) Kovetz Ha-Takkanot of 5734, p. 1902; Sefer Ha-Chukkim of 5735, pp. 18 and 196 - LSI vol. XXK, pp. 25 and 259; Sefer Ha-Chukkim of 5736, p. 274 - LSI vol. XXX, p. 268; Sefer Ha-Chukkim of 5739, p. 140 - LSI vol. XXXIU, p. 173; Sefer Ha-Chukkim of 5740, p. 153 - LSI vol. XXXIV, p. 173; Sefer Ha-Chukkim of 5741, p. 334 - ¿5/ vol. XXXV, p. 412; Sefer Ha-Chukkim of 5742, p. 178 - LSI vol. XXXVI, p. 185; Sefer Ha-Chukkim of 5744, p. 2 - supra, p. 3.

197 (No. 58)

PLANNING AND BUILDING (AMENDMENT No. 21) LAW, 5744-1984*

Amendment of 1. In section 19 of the Third Schedule to the Planning and Building Law, section 19 of the 1 5725-1965 - Third Schedule. (1) the following shall be added at the end of paragraph (5) of subsec tion (b):

"but a recipient of exemption may transfer the ownership or pos session of the apartment even without paying a charge on the. apartment or the part thereof in respect of which the exemption was received";

(2) subsection (c) shall be re-marked as subsection (c)(1) and the fol lowing paragraph shall be added thereafter

"(2) a transfer of the ownership or possession of an apartment built or enlarged under paragraph (1) shall not be regarded as a realisation of rights if the occupier of the property or one of his relatives used the apartment as his residence or that of a near relative from the completion of construction until the sale thereof for a period of not less than four years; for this purpose, "completion of construction" has the same meaning as in the Property Tax and Compensation Fund Law, 5721-19612.".

Amendment of 2. In the Planning and Building (Amendment No. 20) Law, 5743-19833 in transitional section 14(2), the expression "the 26th Tevet, 5744 (1st January, 1984)" provision. shall be replaced by the expression "the 8th Tevet, 5745 (1st January, 1985)".

* Passed by the Knesset on the 27th Iyar, 5744 (29th May, 1984) and published in Sefer Ha-Chu.kk.im No. 1118 of the 7th Sivan, 5744 (7th June, 1984), p. 146; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1667 of 5744, p. 174. 1) Sefer Ha-Chukkim of 5725, p. 307 - LSI vol. XIX, p. 330; Sefer Ha-Chukkim of .LSI vol ־ p. 184 - LSI vol. XXXV, p. 214; Sefer Ha-Chukkim of 5743, p. 25 ,5741 XXXVH, p. 25. 2) Sefer Ha-Chukkim of 5721, p. 100; LSI vol. XV, p. 101. 3) Sefer Ha-Chukkim of 5743, p. 25; LSI vol. XXXVH, p. 25.

198 3. (a) Section 1(1) shall have effect from the 19th Tevet, 5743 (4th Jan- Commencement, uary, 1983).

(b) Section 2 shall have effect from the 26th Tevet, 5744 (1st January, 1984).

YITZCHAK SHAMIR YOSEF BURG Prime Minister Minister of the Interior CHAIM HERZOG President of the Stale

199 משיד המשפטים מםמך זה הינו העתק שנסרק בשלמותו ביום ובשעה המצוינים . בסריקה ממוחשבת מהימנה מהמסמך המצוי בתיק, בהתאם לנוהל הבדיקות במשרד המשפטים. על החתום « 9ן משרד המשפטים (התימה מוסדית). (No. 59)

COURTS (AMENDMENT No. 19) LAW, 5744-1984*

Amendment of 1. Section 4(c) of the Courts Law, 5717-19571 (hereinafter referred to as section 4. "the principal Law") is hereby repealed.

Addition of 2. The following section shall be inserted after section 5 of the principal section SA. Law:

"Acting President 5A. (a) If the place of the President of the Supreme of the Supreme Court has fallen vacant and so long as the new President Court. has not begun to serve, or if the President is absent from Israel or is temporarily unable to carry out his functions, the Deputy President shall carry out the functions as• signed to, and exercise the powers vested in, the President by any enactment. (b) Where the President and the Deputy President of the Supreme Court are unable to carry out their func• tions, the Judge with the greatest length of service or, where the length of service is the same, the oldest Judge shall act as President. (c) The President of the Supreme Court may dele• gate any of his powers to the Deputy President.".

Replacement 3. Section 16 of the principal Law shall be replaced by the following sec• of section 16. tion:

* Passed by the Knesset on the 13th Sivan, 5744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984, p. 150; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1681 of 5744, p. 238. 1) Sefer Ha-Chukkim of 5717, p. 148 - LSI vol. XI, p. 157; Sefer Ha-Chukkim of 5722, p. 24 - LSI vol. XVI, p. 17; Sefer Ha-Chukkim of 5724, p. 66 - LSI vol. XVm, p. 56; Sefer Ha-Chukkim of 5727, p. 132 - LSI vol. XXI, p. 131; Sefer Ha- Chukkim of 5731, p. 120 - LSI vol. XXV, p. 118; Sefer Ha-Chukkim of 5733, p. 237 - LSI vol. XXVn, p. 267; Sefer Ha-Chukkim of 5735, p. 106 - LSI vol. XXIX, p. 139; Sefer Ha-Chukkim of 5737, p. 320 - LSI vol. XXXI, p. 308; Sefer Ha- Chukkim of 5738, pp. 11, 93 and 94 - LSI vol. XXXJJ, pp. 14, 119 and 121; Sefer Ha-Chukkim of 5739, p. 138 - LSI vol. XXXm, p. 172; Sefer Ha-Chukkim of 5740, p. 125 - ¿5/ vol. XXXIV, p. 143; Sefer Ha-Chukkim of 5741, pp. 84 and 273 - LSI vol. XXXV, pp. 83 and 330; Sefer Ha-Chukkim of ;'742, p. 192 - LSI vol. XXXVI, p. 202; Sefer Ha-Chukkim of 5743, pp. 130 and 149 - LSI vol. XXXVU, pp. 150 and 177; Sefer Ha-Chukkim of 5744, p. 82 - supra, p. 107.

200 "Selection of 16. (a) The Judge or Judges who is or are to hear a benches and particular matter shall be designated by the President or fixing of times. Vice-President of the District Court or, in the absence of such a designation, shall be designated in the order pre• scribed from time to time by the President of the District Court.

(b) The time when the District Court shall begin to hear a particular matter shall, in accordance with the rules prescribed by the President of the Court, be fixed by the Judge or Judges who is or are to hear it or, if the bench has not yet been selected, shall be fixed by the President or a Vice-President of the Court.".

4. In section 20 of the principal Law, the words "Any other power reserved Amendment of to the President of a District Court may be delegated by him, wholly or in section 20. part, to a Vice-President" shall be added at the end.

5. In section 23 of the principal Law - Amendment of section 23. (1) subsection (b) shall be replaced by the following subsection: "(b) In every area of jurisdiction, there shall be one President, and there may be one or more Vice-Presidents, of a Magistrates' Court; but one President may serve as President in several areas of juris• diction.". (2) subsection (c) is hereby repealed.

6. Section 26 of the principal Law shall be replaced by the following sec• Amendment of tion: section 26. "Selection of 26. (a) The Judge who is to hear a particular matter bench and fixing of times., shall be designated by the President or a Vice-President of the Magistrates' Court or, in the absence of such a designation, shall be designated in the order prescribed from time to time by the President of the Magistrates' Court. (b) The time when a Magistrates' Court shall be• gin to hear a particular matter shall, in accordance with rules prescribed by the President of the Court, be fixed by the Judge or Judges who is or are to hear it or, if the bench has not yet been selected, shall be fixed by the President or Vice-President of the Court.".

201 Amendment of 7. In section 26A(a) of the principal Law, the words "in another place in section 26A. the same area of jurisdiction" shall be replaced by the words "in another place in an area of jurisdiction in which he serves as President".

Replacement 8. Section 27 of the principal Law shall be replaced by the following sec• of section 27. tion:

"Presiding Judge. 27. (a) Where a Magistrates' Court hears any matter by a bench of three, including the President of the Court, the President shall be the Presiding Judge. When one or two Vice-Presidents but not the President are included, the Vice-President or the Vice-President with the greater length of service, as the case may be, shall be the Presiding Judge. In any other case, the Judge with the greatest length of service or, where the length of service is the same, the oldest Judge shall be the Presiding Judge.

(b) For the purposes of this section, a Judge's length of service is reckoned from the date of his ap• pointment to the Magistrates' Court.".

Amendment of 9. In section 28 of the principal Law, subsection (b) shall be replaced by section 28. the following subsection: "(b) If the District Attorney so decides, a person may be prosecuted in a Magistrates' Court for an offence under any of the sections enumerated in the Third Schedule the circumstances of which do not entail a double penalty: Provided that imprisonment for more than five years shall not be imposed.".

Amendment of 10. In section 29A of the principal Law, the words "Any other power re• section 29A. served to the President of a Magistrates' Court may be delegated by him, wholly or in part, to a Vice-President" shall be added at the end.

Amendment of 11. In section 29C of the principal Law, the following subsection shall be section 29C. added at the end: "(c) Every enactment vesting any power in a Municipal Court shall be deemed to vest such power in a Court for Local Matters.".

Amendment of 12. In section 29E of the principal Law, the following subsection shall be section 29E. added at the end:

202 "(c) The provisions of this section shall not derogate from the powers of a Judge of a Magistrates' Court to try offences referred to in section 23C and to serve as a Judge of a Court for Local Matters. (d) In this section, "Judge retired on pension" includes a Traffic Judge who, after holding a permanent appointment, has retired on pension.".

13. The following section shall be inserted after section 37 of the principal Addition of Law: section 37A. "Correction of 37A. (a) Where a court finds that an error has occurred error in judgment. in a judgment or other decision given by it, it may, within twenty-one days from the date of giving the judgment or decision, correct the error by a reasoned decision, and it may hear arguments of the parties in the matter; for this purpose, "error" means a linguistic error, an arithmetical mistake, a slip of the pen, an accidental omission, an inadvertent addition and the like.

(b) With the consent of the parties, the court may at any time decide upon any correction in a judgment or other decision given by it. (c) Where any judgment or other decision has been corrected under subsection (a), then, for the purposes of an appeal, the date on which the correction was decided upon shall be deemed to be the date of the judgment or other decision. (d) A decision under subsection (a) shall not be appealable save by way of an appeal against the judgment or other decision.".

14. In section 40 of the principal Law, the following subsection shall be Amendment of inserted after subsection (d): section 40. "(dl) The court may prohibit the publication of the name of a suspect against whom an information has not yet been filed, or any other particular likely to identify him, if any lawful investigation might be adversely affected thereby.".

15. Section 41 of the principal Law shall be replaced by the following sec• Replacement tion: of section 41.

203 "Special 41. (a) A person shall not publish anything concern• publications. ing a matter pending in court if the publication is likely to affect the course or outcome of the proceedings. (b) A criminal matter shall be regarded as pending in court from the time when an application for a warrant of arrest, or an information, is filed with the court in that matter, whichever is the earlier, until the prosecutor de• cides not to file an information or, if an information is filed, until the end of the proceedings.

(c) A prohibition of publication shall not apply to a bona fide report of anything which is said or occurs at a public session of the court. (d) A person who contravenes the provisions of this section is liable to imprisonment for a term of one year.".

Amendment of 16. In section 42A(a) of the principal Law, the words "a fine not exceeding section 42A. one thousand shekalim" shall be replaced by the words "half a fine as referred to in section 40(2) of the Penal Law, 5737-19771 (hereinafter referred to as "the Penal Law") and the words "a fine not exceeding two thousand shekalim" shall be replaced by the words "a fine as referred to in section 40(2) of the Penal Law".

Amendment of 17. In section 44 of the principal Law, the words "sections 33 to 37" shall section 44A. be replaced by the words "sections 34 to 37".

Amendment of 18. In the Second Schedule to the principal Law, the following item shall Second Schedule. be added after item 18:

"19. The Mining Ordinance2.".

Addition of 19. The following Schedule shall be added after the Second Schedule to the Third Schedule. principal Law:

1) Sefer Ha-Chukkim of 5737, p. 226 - LSI Special Volume: Penal Law, 5737- 1977; Sefer Ha-Chukkim of 5743, pp. 58 and 130 - LSI vol. XXXVTI, pp. 59 and 150. 2) Laws of Palestine vol. II, p. 938 (English Edition).

204 "THIRD SCHEDULE (Section 28)

Offences under sections 140, 141, 176, 237, 238, 240, 242, 243, 245, 246, 253(b), 257(1), 258, 259(2), 274, 281, 290, 291, 303, 313, 342, 347, 351, 354(a), 359, 360, 361, 382, 391 to 395, 406, 407, 410, 411, 441, 447(b), 453, 455, 457, 464, 465, 471 to 478 and 499(1) of the Penal Law, 5737- 1977; an offence under section 29(a) of the Railways Ordinance (New Ver• sion), 5732-19721; an offence under section 36B(c) of the Traffic Ordinance.2.

20. In section 2 of the Youth (Trial, Punishment and Modes of Treatment) Amendment of ^w, 5731-19713- ™™

(1) in subsection (b), the words "Chief Juvenile Court Judge" shall be TreaZtnt)^ replaced by the words "President of the Juvenile Courts"; Law. (2) the following subsection shall be added after subsection (b): "(c) A District Court Judge who has been appointed President of the Juvenile Courts shall be competent to hear matters within the jurisdiction of a Juvenile Magistrates' Court.".

4 21. In section 11(a) of the Commission of Inquiry Law, 5729-1968 , the Amendmentof

ions words "a fine not exceeding 200 pounds" shall be replaced by the words " a ^f°^^y fine as referred to in section 40(2) of the Penal Law, 5737-1977". Law.

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

1) Dinei Medinat Yisrael (Nusach Chadash) No. 23, p. 485; NV vol. II, p. 264. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 7, p. 173; NV vol. I, p. 222. 3) Sefer Ha-Chukkim of 5731, p. 134 - ¿5/ vol. XXV, p. 128; Sefer Ha-Chukkim of 5742, pp. 159 and 176 - LSI vol. XXXVI, pp. 171 and 184. 4) Sefer Ha-Chukkim of 5729, p. 28 - LSI vol. XXHI, p. 32; Sefer Ha-Chukkim of 5739, p. 84; LSI vol. XXXJU, p. 100.

205 (No. 60)

JUDGES (AMENDMENT No. 10) LAW, 5744-1984*

1 Amendment of 1. In section 2,3 and 4 of the Judges Law, 5713-1953 (hereinafter referred mdT* 2' 3 10 ^ >tiie Pnntipd Law"), the words "the Roll of Advocates in Israel" shall, wherever occurring, be replaced by the words "the Roll of Members of the Chamber of Advocates".

Amendment 2. In section 8 of the principal Law - of section 8. (1) the subsection-mark "(a)" and subsection (b) shall be deleted; (2) the expression "section 5" shall be replaced by the expression "section 4 of the Basic Law: Judicature2".

Amendment of 3. In section 10 of the principal Law - section 10. (1) the following shall be added at the end of subsection (b): "or, in the case of a Judge, being a Registrar, who has been ap pointed Acting Judge of the District Court in which he serves as a Registrar, shall not exceed four years out of a period of five years, provided that the President of the Supreme Court has consented thereto."; (2) subsection (c) shall be deleted.

Addition of 4. The following section shall be inserted after section 16 of the principal section 16A. Law"

"Termination of 16A. Where the Judges' Selection Committee decides to

tenure by decision. termjnate the tenure of a Judge under section 7(4) of the Basic Law: Judicature, it shall, in its decision, prescribe

* Passed by the Knesset on the 13th Sivan, 5744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984), p. 153; the Bill and an Explanatory Note were published in Halza'ot Chok No. 1681 of 5741, p. 236. 1) Sefer Ha-Chukkim of 5713, p. 149 - LSI vol. VII, p. 154; Sefer Ha-Chukkim of 5719, p. 134 - LSI vol. XIH, p. 144; Sefer Ha-Chukkim of 5724, p. 140 - LSI vol. XVm, p. 136; Sefer Ha-Chukkim of 5729, p. 98 - LSI vol. XXUI, p. 108; Sefer Ha-Chukkim of 5738, p. 22 - LSI vol. XXXII, p. 29; Sefer Ha-Chukkim of 5740, p. 186; LSI vol. XXXIV, p. 210; Sefer Ha-Chukkim of 5741, pp. 6 and 272 - LSI vol. .LSI vol. XXXVI, p ־ XXXV, pp. 6 and 329; Sefer Ha-Chukkim of 5742, p. 196 207; Sefer Ha-Chukkim of 5744, p. 82 - supra, p. 107. 2) Sefer Ha-Chukkim of 5744, p. 78; supra, p. 101.

206 the time for the termination of the tenure and, at its dis cretion, the rate of the benefit he is to receive.

5. The following shall be added at the end of section 17(b)(3) of the princi Amendment of section 17. pal Law: "the Committee may make its consent conditional on the fixing of a rate of benefit lower than that provided by law.".

6. The following shall be added at the end of section 17A of the principal Amendment of section 17A. Law: "In this section and in section 18, "Judge retired on pension" includes a Traffic Judge who, after holding a permanent appointment, has retired on pension.".

7. Section 17B of the principal Law is hereby repealed. Repeal of section 17B. 8. The following section shall be inserted after section 17A of the principal Addition of section 18. Law:

"Power of Judge to 18. (a) A Judge who, having begun a hearing, retires on complete hearing. pension or quits shall be competent to complete the hearing within three months from the date of the retire ment or quitting. (b) If, where a Judge has begun a hearing, his cur rent appointment ends because he is appointed to some other court or because an acting appointment expires, he shall be competent to complete the hearing he has be gun.".

9. The following section shall be inserted after section 26 of the principal Addition of section 26A. Law:

"Judge who is 26A. Where a Judge is a party to a civil proceeding, the party to civil President of the Supreme Court shall designate the court proceeding. which is to hear the matter,"-

the closing passage of Amendmensection t of ,־ In the Labour Courts Law, 572919691 .10 Labour Courts Law.

LSI vol. XXIII, p. 76; Sefer Ha-Chukkim of ־ Sefer Ha-Chukkim of 5729, p. 70 (1 5744, p. 83 - supra, p. 107.

207 7, beginning with the words "but where a Judge serving under an acting ap• pointment" shall be deleted.

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State (No. 61)

5744-1984״ ,REGISTRARS (AMENDMENT No. 3) ORDINANCE

1. In the Registrars Ordinance (New Version), 5731- 19711 (hereinafter re Replacement ferred to as "the Ordinance"), section 3 shall be replaced by the following of section 3. section:

"Judgment in 3. In an action in which a defendant does not defend undefended action. himself, including an action by summary proceeding in which the defendant has not been permitted to defend himself, the Registrar may - (1) demand evidence in writing; (2) give an ex parte judgment against the defen dant; (3) quash a judgment given under paragraph (2).".

2. In section 4 of the Ordinance, the words "so long as it has been agreed Amendment which of the parties is to bear the costs" shall be deleted. of section 4.

3. Section 5 of the Ordinance shall be replaced by the following section: Replacement of section 5. "Striking-out 5. The Registrar may, on application or on his own of proceeding. motion, in accordance with procedural regulations, direct that any action or appeal be struck out for want of prose cution.".

4. In section 8 of the Ordinance - Amendment of section 8. (1) the subsection-mark "(a)" shall be inserted after the section-mark "8" and the words "the Registrar" shall be replaced by the words "A reg istrar of a court competent under the Succession Law, 5725-19652 "; (2) the following subsection shall be added after subsection (a):

* Passed by the Knesset on the 13th Sivan, 5744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (30th June, 1984), p. 155; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1681 of 5744, p. 245. ;NV vol. II, p. 216 ־ Dinei Medinal Yisrael (Nusach Chadash) No. 19, p. 436 (1 Sefer Ha-Chukkim of 5735, p. 16 - LSI vol. XXIX, p. 22; Sefer Ha-Chukkim of 5736, p. 203 - LSI vol. XXX, p. 200. 2) Sefer Ha-Chukkim of 5725, p. 63; LSI vol. XIX, p. 58.

209 "(b) The registrar may, on the application of an administrator or an interested party, issue directions in matters relating to the estate, its administration and its assets, provided the case is unopposed.".

Addition of 5. The following section shall be inserted after section 8 of the Ordinance: section 8A. "Matters of 8A. A registrar of a court having powers as referred to in

guardianship. section 78 of ^ Capacity and Guardianship Law, 5722- 19621, may approve acts as referred to in sections 20 and 47 of the said Law, provided they are unopposed.".

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5722, p. 120; LSI vol. XVI, p. 106.

210 (No. 62)

PENAL LAW (AMENDMENT No. 19), 5744-1984*

1 . 1. In section 13 of the Penal Law, 5737-1977 , the word "thirteen" shall be Amendment replaced by the word "twelve".

2. In the Youth (Trial, Punishment and Modes of Treatment) Law, 5731- Amendment of 19712, section 12 shall be re-marked as section 12(a) and the following sub• Youth (Trial, Punishment section shall be added thereafter: and Modes of Treatment) "(b) A minor who has not yet completed his thirteenth year may only be Law. brought to trial after consultation with a probation officer.".

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

* Passed by the Knesset on the 13th Sivan, 5744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984), p. 156; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1627 of 5744, p. 174. 1) Sefer Ha-Chukkim of 5737, p. 226 - LSI Special Volume: Penal Law, 5737-1977; Sefer Ha-Chukkim of 5742, pp. 172, 196 and 197 - LSI vol. XXXVI, pp. 182, 207 and 209; Sefer Ha-Chukkim of 5743, pp. 58 and 130 - LSI vol. XXXVD, pp. 59 and 150. 2) Sefer Ha-Chukkim of 5731, p. 134 - LSI vol. XXV, p. 128. (No. 63)

REPEAL OF ME J ELLE LAW, 5744-1984*

Repeal of Mejeiu. 1. The Mejelle is hereby repealed.

Saving of laws. 2. (a) This Law shall not derogate from any provision of Law maintain• ing, in respect of a particular matter, the validity of any provisions of the Mejelle. (b) This Law shall not be construed as derogating from the validity of any law applied by a Shari'a Court.

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

* Passed by the Knesset on the 13th Sivan, 5744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20lh June, 1984), p. 156; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1681 of 5744, p. 246.

212 (No. 64)

PERFORMERS' RIGHTS LAW, 5744-1984*

Chapter One: Interpretation

1. In this Law -

"performer" means a person who by acting, singing, playing music, dancing, Definitions, or in any other way performs a literary, artistic, dramatic or musical work; "performance" means the performance of a literary, artistic, dramatic or musical work by a performer; "fixation" means the preservation of a performance by any means whatsoever in a manner making it possible to see, hear or reproduce the performance; "broadcast" means the transmission or dissemination to the public, by wire, wireless or in any other way, of sounds or images or a combination of sounds and images; "rebroadcast" means a broadcast by any person of a broadcast of another per• son simultaneously with the broadcast of the other person; "reproduction" means the making of a copy of a fixation or of a substantial part thereof.

Chapter Two: Performers' Rights

2. It shall be the right of a performer that the following acts shall not be Rights of done without his consent performer. (1) a fixation; (2) a reproduction unless both of the following apply: (a) the fixation was made with with his consent; (b) the reproduction is made for the same purpose for which the consent was given.

* Passed by the Knesset on the on the 13th Sivan, 5744 (13th June, 1984) and pub• lished in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984), p. 157; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1633 of 5743, p. 201.

213 (3) a broadcast of a performance unless one of the of the following ap• plies: (a) the performance is broadcast by the Broadcasting Authority, Educational Television or the Army Radio from a fixation or a re• production thereof, made with the consent of the performer, and an agreement exists between the agency which makes the broadcast and the person who made the fixation concerning the right to use the performance; (b) the broadcast is a rebroadcast to which the agency making the original broadcast has given its consent (4) the sale, hire, distribution, import or possession, for commercial purposes, of a fixation or a reproduction thereof if the fixation or repro• duction was made without the consent of the performer.

Who may 3. Consent under section 2 - give consent. (1) where the performer is a soloist or an individual who is not a member of a group - is given by the performer or a representative authorised by him in writing; (2) where the performer is a group - is given by a representative authorised in writing by the members of the group or, if there is no such representative, by the majority of the members of the group.

Exemptions 4. The provisions of section 2 shall not apply where the acts mentioned from require• ment of consent. therein constitute distribution or fair use for the purposes of study or teach• ing on a non-profit basis or for the purposes of research, criticism, a review or a journalistic summary.

Chapter Three: Remedies and Penalties

Civil remedies. 5. A performer whose right under this Law has been infringed shall, mutatis mutandis, have all the civil remedies available in law to the holder of a copyright whose copyright has been infringed.

Penalties. 6. (a) A person who knowingly infringes rights of a performer under this

214 Law shall be liable to imprisonment for a term of six months or a fine as provided in section 61(a)(4) of the Penal Law, 5737-19771. (b) A person who purports to give consent for the purposes of section 2 without being authorised to do so or in excess of such authorisation or a person who acts on the basis of consent as aforesaid knowing that it was given without or in excess of authorisation shall be liable to a fine.

7. (a) Where an offence under this Law is committed by a body corporate, Responsibility every person who at the time of its commission is an active director or a for offence. partner - other than a limited partner - of that body or a senior employee thereof responsible for the field in question shall also be guilty of the offence unless he proves that it was committed without his knowledge and that he took all reasonable measures to ensure compliance with this Law. (b) Where an offence under this Law is committed by an employee in the course of the business of his employer or by an authorised agent acting within the scope of his functions, his employer or principal shall also be guilty of the offence unless he proves that it was committed without his knowledge or that he took all reasonalbe measures to ensure compliance with this Law.

8. In addition to any other relief, the court may order the seizure or the Order of seizure prohibition of the distribution of a fixation or of any reproduction thereof; or prohibition of distribution. where the court orders seizure, it shall direct how the fixation or reproduction seized shall be disposed of.

9. (a) A seizure order under section 8 shall have effect against any person Application of named therein who is in possession of a fixation or reproduction for the pur• seizure order to person not a party. pose of sale, hire, distribution or storage even if such person was not a party to the proceeding (such a person hereinafter referred to as a "non-party"). (b) The court may make the issue of a seizure order against a non-party conditional on the giving of security to its satisfaction; if the court, on the application of a non-party, is satisfied that the application for the order was unreasonable, it may, after giving the parties concerned an opportunity to be heard, direct the forfeiture of the whole or part of the security in favour of the person against whom the order was issued, to compensate him for the dam• age caused by the implementation of the order.

1) Sefer Ha-Chukkim of 5737, p. 226; LSI Special Volume: Penal Law, S737-1977; Sefer Ha-Chukkim of 5743, pp. 58 and 130; LSI vol. XXXVII, pp. 59 and 150; Se• fer Ha-Chukkim of 5744, p. 156 - supra, p. 211.

215 (c) A seizure order implemented against a non-party shall become void upon the expiration of thirty days from the date of its implementation save if a criminal or civil action has been brought against him before then for theinfringement which was the ground for the issue of the order or if the order is quashed under subsection (e).

(d) A seizure order which has not been implemented shall become void upon the expiration of ninety days from the date on which it was made. (e) A person against whom a seizure order under subsection (c) has been implemented may, within thirty days from the date of the implementa• tion, apply to the court which made the order to revoke or vary it. The court may extend the period if it deems it justified to do so in the circumstances of the case.

Chapter 4: Miscellaneous Provisions

Period of 10. The provisions of this Law shall not apply to a performance after the performers' rights. expiration of twenty-five years from the end of the year in which the original performance was given.

Performer being 11. Where a performer is employed as an employee and the performance is employee. given in the course and in consequence of his service with his employer, then, unless otherwise provided by agreement, the rights conferred by this Law on the performer shall, in the first fifteen years of the period mentioned in section 10, vest in the employer, and during the remainder of that period, in the performer.

Performer being 12. (a) Where a performance is given in the course and in consequence of police officer or the service of the performer in the Police or Army, the provisions of section soldier. 11 shall apply as if the State were the performer's employer if - (1) the performer is a police officer, or (2) the performer is a person who belongs to the regular forces of the Army or (3) the performer is a person who belongs to the reserve forces of the Army and the performance is produced by the Army. (b) Where a performance is given in the course and in consequence of the service of the performer in reserve service, the State may broadcast and fix it without his consent.

216 (c) In this section - (1) "a person who belongs to the regular forces of the Army" and "a person who belongs to the reserve forces of the Army" have the respec• tive meanings assigned to these terms in the definition of "soldier" in section 1 of the Military Justice Law, 5709-19551; (2) "reserve service" has the same meaning as in the Defence Service Law (Consolidated Version), 5719-19592.

13. (a) This Law shall not apply to performances given outside Israel. Performance outside Israel. (b) Notwithstanding the provisions of subsection (a), the Minister of Justice may direct by order that all or part of the provisions of this Law shall apply to performances given outside Israel if so provided by an international convention to which Israel is a party.

14. This Law shall not apply to a performance which took place before its Performance before coming into force. coming into force of Law.

15. This Law shall be in addition to, and not in derogation of, any other Saving of laws, law.

16. The provisions of this Law shall not affect or derogate from the condi- Freedom of tions of any agreement made either before or after its coming into force. stipulation.

17. This Law shall apply to the State. Status of the State.

18. This Law shall come into force upon the expiration of thirty days from Commencement, the date of its publication.

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Justice CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5715, p. 171; LSI vol. K, p. 184. 2) Sefer Ha-Chukkim of 5719, p. 286; LSI vol. XHJ, p. 328.

217 (No. 65)

COMPULSORY EDUCATION (AMENDMENT No. 16) LAW, ״5744-1984

1 Amendment of 1. In section 1 of the Compulsory Education Law, 5709-1949 (hereinafter referred to as "the principal Law") - (1) in the definition of "child", the word "five" shall be replaced by the word "three"; (2) the definition of "kindergarten education" shall be replaced by the following definition: "kindergarten education" means education provided at a kinder garten, including a kindergarten at a children's home, to children of the ages from three to five years inclusive;"; (3) in the definition of "compulsory education", the words "in eleven school years, viz. one year at kindergarten for children of five years of age" shall be replaced by the words "in thirteen school years, viz. three at kindergarten for children of the ages from three to five years inclu sive".

Commencement 2. Notwithstanding the provision of section 2(a) of the principal Law, and transitional compulsory education shall be extended to children of the ages of three and provisions. four years progressively, in equal instalments as far as possible, over a period of six years beginning with the school year 5746, in accordance with orders made by the Minister in consultation with the Committee on Education and Culture of the Knesset: Provided that the extension shall be completed not later than the beginning of the school year 5752.

YITZCHAK SHAMIR ZEVULUN HAMMER Prime Minister Minister of Education and Culture CHAIM HERZOG President of the State

* Passed by the Knesset on the 13lh Sivan, S744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984), p. 160; the Bill and an Explanatory Note were published in Hatia'ol Chok No. 1587 of 5742. p. 228. 1) Sefer Ha-Chukkim of 5709, p. 287; LSI vol. JH, p. 125.

218 (No. 66)

CUSTOMS AND EXCISE DUTIES (VARIATION OF TARIFF) (AMENDMENT No. 4) LAW, 5744-1984*

1. In section 2 of the Customs and Excise Duties (Variation of Tariff) Amendment Law, 5709-19491 - of section : (1) subsection (a) shall be re-marked as subsection (a)(1), the words "the Knesset", appearing therein, shall be replaced by the words "the Fi nance Committee of the Knesset" and the following paragraphs shall be added thereafter "(2) a decision under paragraph (1) shall be laid on the Knesset table and shall take effect upon the expiration of seven days from the date of its being so laid unless a member of the Knesset has re quested by then that the Knesset annul it; where such a request is made, the Knesset shall consider it, and the decision shall take ef fect upon the expiration of two weeks from the date of the request unless the Knesset annuls it;

(3) notwithstanding the provisions of paragraph (2), a decision laid on the Knesset table within three weeks before the end of the Knesset term shall require the approval of the Knesset."; (2) in subsection (c), the words "Any decision of the Knesset" shall be replaced by the words "Any decision which has taken effect".

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

* Passed by the Knesset on the 12th Sivan, 5744 (12th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984), p. 161; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1663 of 5744, p. 154. 1) Sefer Ha-Chukkim of 5709, p. 154 - LSI vol. IJJ, p. 69; Sefer Ha-Chukkim of .LSI vol ־ p. 264 - LSI vol. VI, p. 78; Sefer Ha-Chukkim of 5715, p. 159 ,5712 DC, p. 183; Sefer Ha-Chukkim of 5720, p. 18 - LSI vol. XIV, p. 17.

219 (No. 67)

INCOME TAX ORDINANCE (AMENDMENT No. 63) LAW, ״5744-1984

Amendment 1. In section 40(b)(1) of the Income Tax Ordinance1, after the words "in re of section 40. spect of each child", there shall be inserted the words "and, in respect of his being a one-parent family, one additional credit point only".

Application. 2. This Law shall have effect from the tax year 1984.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

* Passed by the Knesset on the 12th Sivan, 5744 (12th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984), p. 161; the Bill and an Explanatory Note were published in Hatia'ot Chok No. 1686 of 5744, p. 276. 1) Dinei Medinal Yisrael (Nusach Chadash) No. 6, p. 120 - NV vol. I, p. 145; Sefer Ha-Chukkim of 5744, pp. 47, 56 and 124, - supra, pp. 55, 67 and 169.

220 (No. 68)

INCOME TAX ORDINANCE (AMENDMENT No. 64) LAW, 5744-1984•

1. In section 15A of the Income Tax Ordinance1 (hereinafter referred to as Amendment of "the Ordinance")- section ISA. (1) in the marginal note, the words "Israeli currency deposits" shall be replaced by the words "deposits with banking corporation"; (2) the words "an Israeli-currency deposit" shall be replaced by the words "particular classes of deposits of particular assessees"; (3) the words "and he also may, with approval as aforesaid, prescribe that a deposit for the interest on which exemption has been granted un• der this section shall not for the purposes of any law be regarded as a preferred loan" shall be added at the end.

2. In section 70 of the Ordinance, the words "or, if the Minister of Finance Amendment of certifies that such state acts as if an agreement prescribing exemption as section 70. aforesaid existed between it and the State of Israel" shall be added at the end.

3. In section 91(d)(3) of the Ordinance, the closing passage, beginning Amendment of with the words "pay linkage differentials" shall be replaced by the following: section 91. "(a) pay linkage differentials, and interest, within the meaning of sec• tion 159A(a), on the difference between the amount he has paid and the amount of tax due from him;

(b) pay a fine as provided in the Taxes (Arrear Fine) Law, 5741-19802, on the amount not paid as stated in paragraph (1) or on the difference between the amount paid under paragraph (2) and the amount due or 40 per cent of the capital gain, whichever is least.".

4. In section 145(a) of the Ordinance, the following paragraph shall be Amendment of added at the end: section 145.

* Passed by the Knesset on the 13th Sivan, 5744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984), p. 162; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1686 of 5744, p. 272. 1) Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120 - NV vol. I, p. 145; Sefer Ha-Chukkim of 5744, pp. 47, 56, 124 and 161; supra, pp. 56, 67, 148 and 169. 2) Sefer Ha-Chukkim of 5741, p. 38; LSI vol. XXV, p. 39.

221 "(3) Notwithstanding the provisions of paragraph (1), the Assessing Officer may, within six months from the date of receipt of a return which is a self-assessment - (a) correct an arithmetical mistake in the return; (b) apply the provisions of any law applicable to an assessee who, having been required to keep account-books for a particular tax year or part thereof, did not keep them or kept them only for part of the period for which he was required to keep them or did not base his return on the account-books; (c) apply the provisions of any law applicable to an assessee after it has been determined, by final determination, that his books are not acceptable; for this purpose, "final determination" means a de• termination no longer subject to a right of objection or appeal; but the return shall continue to be regarded as a self-assessment even af• ter the Assessing Officer has done as aforesaid.".

Amendment of 5. In section 187 of the Ordinance, subsection (b) shall be replaced by the section 187. following subsection:

"(b) The provisions of subsection (a) shall not apply in respect of a pe• riod for which linkage differentials and interest are due under section 185(2), or 186.".

Amendment of 6. In section 187A of the Ordinance - section 187A. (1) in the opening passage of subsection (a), the words "the interest due thereon" shall be replaced by the words "the linkage differentials and interest due thereon"; (2) in paragraphs (1), (2) and (3) of subsection (a) and in subsection (b), the words "the interest" shall be replaced by the words "the linkage differentials and interest".

Amendment of 7. In section 190(a) of the Ordinance, paragraph (1) shall be replaced by the section 190. following paragraph:

"(1) (a) Where a person is more than seven days behind with an ad• vance payment due from him, or with part thereof, there shall be added to the amount not paid in time a fine at the rate of 2.5 per cent thereof, or at some other rate prescribed by the Minister of Fi• nance with the approval of the Finance Committee of the Knesset, in respect of every week of delay or fraction thereof, from the time

222 prescribed for the advance payment until the payment of the amount overdue or until the end of the tax year in respect of which the advance payment is demanded, whichever is the earlier; in the case of a person with a special period of assessment, this paragraph shall be read as if the expression "tax year" were replaced by the expression "special assessment period"; (b) the amount of a fine due under subparagraph (a) which is added in a particular quarter and is not paid by the end of that quarter, shall be adjusted in accordance with the rate of increase of the index from the beginning of the following quarter until the payment of the fine; for this purpose, "quarter" means the three months begin• ning with the 1st April, 1st July, 1st October and 1st January, re• spectively, and "rate of increase of index" has the same meaning as in section 159A(a).".

8. In section 29(f)(1) of the Income Tax (Taxation under Conditions of In• Amendment of flation) Law, 5742-19821, the words "before the dispatch of notice of the Income Tax (Taxation under amount of the tax due according to the return" shall be replaced by the words Conditions of "within one year from the date of receipt of the return" and the words "from Inflation) Law. the date of the demand" shall be inserted after the words "sixty days".

9. In section 1 of the Taxes (Arrear Fine) Law, 5741-1980, the following Amendment of shall be added at the end of the definition of "tax debt": "and does not include Taxes (Arrear Fine) Law. an income-tax advance payment to which section 190 of the Ordinance ap• plies";

10. (a) Linkage differentials and interest, accumulated under section 187 of Application and the Ordinance up to the date of publication of this Law and the accumulation transitional provision. of which was discontinued by virtue of section 187(b) as in force before its amendment by this Law, and which are still unpaid on the date of publication of this Law, shall have linkage differentials added to them from the date of publication of this Law until the date of payment.

(b) Section 6 shall apply in respect of payments for the tax year 1983 and subsequent tax years. (c) Sections 7 and 9 shall come into force on the 1st Tammuz, 5744 (1st July, 1984).

1) Sefer Ha-Chukkim of 5742, p. 234; LSI vol. XXXVI, p. 249.

223 (c) Sections 7 and 9 shall come into force on the 1st Tammuz, 5744 (1st July, 1984).

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance

CHAIM HERZOG President of the Stale (No. 69)

5744-1984״ ,DEFENCE LOAN (VOLUNTARY EXTENSION) LAW

1. In this Law - Definitions.

"defence loan" means a loan under the Defence Loan Law, 5721-19711 (hereinafter referred to as "the Law"); "the original time of repayment" means the time of repayment fixed in accordance with the Law; "the time of repayment of the new loan" means the first of the month fol lowing the expiration of the period fixed in section 2.

2. A person who, being entitled to have a defence loan repaid to him, re- New loan, frains from demanding its repayment until the expiration of fifty-four months from the original time of repayment shall be deemed to have had the loan re paid to him and to have re-lent the amounts due upon the redemption of the loan certificate in his possession (such amounts hereinafter referred to as "the amount of the new loan") for the aforesaid period, and the loan certificate in his possession shall be deemed to have been issued in respect of the new loan.

3. (a) The amount of the new loan shall bear interest at the rate of four per interest, cent per annum from the 1st April, 1984, until the time of repayment of the new loan. (b) The interest shall be exempt from income tax.

4. (a) The amount of the new loan and the interest thereon shall be linked Loan linked to the consumer price index. Where at the time of repayment of the new loan to index. it is found that the new index exceeds the basic index, the principal of the new index and the interest thereon shall be paid increased at the rate of the excess of the new index over the basic index.

* Passed by the Knesset on the 13th Sivan, 5744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984), p. 164; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1683 of 5744, p. 260. 1) Sefer Ha-Chukkim of 5731, p. 73 - LSI vol. XXV, p. 67.

225 (b) In this section - "consumer price index" or "index" means the consumer price index (including fruit and vegetables) determined by the Central Bureau of Statistics, even if published by any other Government agency, and includes any official index taking its place, whether or not based on the same data as the existing index; if the existing index is replaced by another index, the Central Bureau of Statistics shall determine the ratio between the latter and the replaced index; "basic index" means the index published on the 15th April, 1984; "new index" means the index last published before the time of re• payment of the new loan.

Loan certificates. 5. The loan certificates shall continue to be non-negotiable, and shall not be transferable save by operation of law, except if thé Minister of Finance, with the approval of the Finance Committee of the Knesset, prescribes by regulations that they shall be negotiable, and on the conditions prescribed by him.

Repayment 6. Where a person refrains from demanding the repayment of a defence loan before new time. at the original time of repayment but demands its repayment before the time of repayment of the new loan, the provisions of the Loans (Miscellaneous Provisions) Law, 5738-19781 (hereinafter referred to as "the Loans Law") shall apply to the repayment.

Early repayment. 7. Where a person who fulfils the conditions of section 7(b) or (d) of the Law or of section 3A of the Loans Law was entitled to have the loan repaid to him before the original time of repayment, and the repayment is made at or after the originartime of repayment but not after the time of repayment of the new loan, he shall be paid the principal of the loan, plus linkage differentials calculated in accordance with the index last published before the original time of repayment.

Implementation 8. The Minister of Finance is charged with the implementation of this and regulations. Law and may make regulations as to any matter relating to its implementa• tion.

1) Sefer Ha-Chukkim of 5738, p. 18; LSI vol. XXXII, p. 18.

226 9. This Law shall not apply to a person to whom a defence loan was re- Restriction on paid before its coming into force. application.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the Stale

227 (No. 70)

5744-1984״ ,SECURITIES (AMENDMENT No. 7) LAW

Addition of 1. In the Securities Law, 5728-19681 (hereinafter referred to as "the princi section 5SA. pal Law"), the following section shall be inserted after section 55:

"Fees. 55A. The Minister of Finance may, in consultation with the Authority and with the approval of the Finance Committee of the Knesset, enact by regulations provi sions as to fees to be paid to the Authority, including provisions as to linkage differentials, and a fine, to be paid for delay in paying fees and as to the application of the Taxes (Collection) Ordinance2 to the collection of linkage differentials, and a fine, as aforesaid.".

Amendment of 2. In section 56(a) of the principal Law, the closing passage, beginning section 56. with the words "In such regulations, the Minister of Finance may" shall be deleted.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

* Passed by the Knesset on the 11th Sivan, 5744 (11th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June.1984), p. 165; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1678 of 5744, p. 222. 1) Sefer Ha-Chukkim of 5728, p. 234 - LSI vol. XXII, p. 266; Sefer Ha-Chukkim of 5741, p. 264 - LSI vol. XXII, p. 266. 2) Laws of Palestine vol. U, p. 1399 (English Edition).

228 (No. 71)

ELEVENTH KNESSET ELECTIONS (TEMPORARY PROVISIONS) 5744-1984״ ,AMENDMENT) LAW)

1. In the Eleventh Knesset Elections (Temporary Provisions) Law, 5744- Addition of 19841 (hereinafter referred to as "the principal Law"), the following section section 33A. shall be inserted after section 33:

"Amendment of 33A. In section 65 of the Elections Law, the words "not section 65. later than the 9th day before election day" shall be re placed by the words "not later than the 8th Tammuz, 5744 (8th July, 1984).".

2. The following section shall be inserted after section 34 of the principal Addition of Law: section 34A.

"Amendment of 34A. In section 67 of the principal Law - section 67. (1) in subsection (b), the words "not later than the 11th day before election day" shall be replaced by the words "not later than the 5th Tammuz, 5744 (5th July, 1984)"; (2) in subsection (c) the words "not later than the 8th day before election day" shall be replaced by the words "not later than the 9th Tammuz, 5744 (9th July, 1984).".

3. In section 42 of the principal Law - Amendment of section 42. (1) paragraph (2) shall be replaced by the following paragraph: "(2) subsection (e) shall be replaced by the following subsection: "(e) A police officer to whom a police officer's voting pass has been issued may vote at any polling station provided that -

* Passed by the Knesset on the 13th Sivan, 5744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June.1984), p. 166; the Bill and an Explanatory Note were published in Hatza'ol Chok No. 1682 of 5744. p. 255. 1) Sefer Ha-Chukkim of 5744, p. 133.

229 (1) he has identified himself by an identity certifi• cate or identification booklet and by a police offi• cer's pass; (2) he has appeared in a police officer's uniform unless he has delivered to the chairman of the polling committee a certificate from the Israel Po• lice that he is permitted to vote without wearing a police officer's uniform; and when he has voted as aforesaid, he shall deliver to the chairman of the polling committee the police officer's voting pass; the chairman of the polling committee shall sign the pass and the certificate, if any, mentioned in paragraph (2) and shall attach them to the minutes of the polling committee, and the committee shall affix a rub• ber-stamp attesting that the police officer has voted in elections to the Knesset as provided in section 74(c).";

(2) the following paragraph shall be added after paragraph (2): "(3) the following subsection shall be added after subsection (e): "(f) Where a police officer to whom a police officer's voting pass has been issued subsequently ceases to be a police officer, he may vote at any polling station, pro• vided that he identifies himself by an identity certificate or identification booklet and produces to the chairman of the polling committee a certificate from the Israel Police that he has ceased to be a police officer; the chairman of the polling committee shall sign the certificate and shall attach it to the minutes of the polling committee, and the committee shall affix a rubber-stamp attesting that the former police officer has voted in elections to the Knes• set, as provided in section 74(c).".

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State (No. 72)

TELECOMMUNICATIONS (AMENDMENT No. 2) LAW, 5744-1984*

1 1. In the Telecommunications Law, 5742-1982 , the following subsection Amendment of 47־ shall be added at the end of section 47: section "(d) Notwithstanding anything provided in sections 24 and 95 of the Income Tax Ordinance2, the cost price of the property the rights in which have been vested in the Company by the property transfer agree ment shall be the value of that property as determined in the property transfer agreement, and the date of the coming into force of such agree ment shall be regarded as the date of the acquisition of the property.".

YITZCHAK SHAMIR MORDECHAIZIPORI Prime Minister Minister of Communications CHAIM HERZOG President of the Slate

* Passed by the Knesset on the 13th Sivan, 5744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984), p. 167; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1681 of 5744, p. 254. 1) Sefer Ha-Chukkim of 5742, p. 218 - LSI vol. XXXVI, p. 229; Sefer Ha-Chukkim of 5743, p. 4-LSI vol. XXXVTJ, p. 4. 2) Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120 - NV vol. I, p. 145; Sefer Ha-Chukkim of 5744, p. 162 - supra, p. 221.

231 (No. 73)

EMERGENCY REGULATIONS (COMPULSORY PAYMENTS) (EXTENSION OF VALIDITY) (No. 2) LAW, 5744-1984*

Extension of 1. The validity of the Emergency Regulations (Compulsory Payments),

1 validity. 5718-1958 , is hereby extended until the 11th Tammuz, 5745 (30th June, 1985).

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of the State

* Passed by the Knesset on the 12th Sivan, 5744 (12th June, 1984) and published in Sefer Ha-Chukkim No. 1119 of the 20th Sivan, 5744 (20th June, 1984), p. p. 167; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1681 of 5744, p. 253. 1) Sefer Ha-Chukkim of 5724, p. 175 - LSI vol. VTA, p. 173; Sefer Ha-Chukkim of 5744, p. 34 - supra, p. 41.

232 \(No. 74)

USE OF HYPNOSIS LAW, 5744-1984*

Chapter One: Interpretation

1. In this Law - Definitions. "hypnosis" means any act or process intended or likely to cause, by means of suggestion, changes in the state of consciousness or degree of awareness, or in the body, sensations, feelings, thinking, memory or behaviour, of another person; "the Director" means the Director-General of the Ministry of Health and in• cludes the Head of the Mental Health Services or a physician employed by the Ministry to whom the Director has delegated, in writing, all or part of his powers under this Law; "the Ministry" means the Ministry of Health; "the Register" means the Register of Authorised Hypnotists kept under Chapter Three; "Advisory Board" means a board appointed under section 24; "the Psychologists Law" means the Psychologists Law, 5737-1977'; "authorised hypnotist" means a person authorised to practise hypnotism un• der Chapter Three and registered in the Register, "specialised psychologist" means - (1) a person recognised as a clinical, educational, social-occupational or rehabilitative psychologist in accordance with regulations under section 8 of the Psychologists Law. (2) a psychologist specialising in a further branch designated as a recognised specialty under section 8 of the Psychologists Law and recognised by the Minister, with the approval of the Labour and Social Affairs Committee of the Knesset, for the purposes of this Law;

* Passed by the Knesset on the 13th Sivan, 5744 (13th June, 1984) and published in Sefer Ha-Chukkim No. 1120 of the 28th Sivan, 5744 (28th June, 1984), p. 170; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1538 of 5741, p. 371. 1) Sefer Ha-Chukkim of 5737, p. 158; LSI vol. XXXI, p. 195.

233 "the Physicians Ordinance" means the Physicians Ordinance (New Ver• sion), 5737-19761; "the Dentists Ordinance" means the Dentists Ordinance (New Version), 5739-19792; "physician" means an authorised physician within the meaning of the Physicians Ordinance; "dentist" means a dentist within the meaning of the Dentists Ordinance; "the Registrar" means a person appointed under section 23 to be the Registrar of Authorised Hypnotists and includes an Assistant Registrar; "the Minister" means the Minister of Health.

Chapter Two: Principles

Exclusive right 2. (a) No person other than an authorised hypnotist acting within the to practise terms of the authorisation shall hypnotise any other person. hypnotism. (b) No person other than an authorised hypnotist shall either expressly or by implication, hold himself out as practising, or being prepared to prac• tise, hypnotism.

Purposes and 3. (a) An authorised hypnotist shall not hypnotise another person save in conditions. accordance with this Law and the regulations thereunder and for one of the following purposes: (1) medical diagnosis or treatment; (2) psychological diagnosis or treatment; (3) scientific research; (4) scientific teaching in the field of hypnotism; (5) refreshing a person's memory in the course of a police or security investigation.

Student hypnotist. 4. (a) The prohibitions imposed by sections 2 and 3 shall not apply to a physician, dentist or specialised psychologist certified by the Director to be a student hypnotist, in respect of hypnotism practised for the purposes of his

1) Dinei Medinat Yisrael (Nusach Chadash) No. 30, p. 594; NV vol. UJ, p. 80. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 32, p. 614; NV vol. HI, p. 101. 234 studies and under the personal supervision of a person qualified to teach hyp• notism. (b) In this section, "physician" and "dentist" include a student in the last year of his medical or dental studies, and "specialised psychologist" in• cludes a psychologist during a period of training for a degree in a recognised specialty.

5. (a) A person shall not hypnotise another person save with his written Consent to consent given after the nature of the hypnotic process and its possible effects undergo hypm have been explained to him. (b) A person who has given his consent under subsection (a) may withdraw it at any time before the hypnosis is carried out. (c) The consent of a detainee or prisoner to be hypnotised may only be given in the presence of his advocate or of a lawyer placed at his disposal by the Ministry of Justice with his consent

6. (a) An authorised hypnotist shall not hypnotise a minor, a mentally Restrictions sick person or a legally incompetent person save for the purpose of diagnosis as to hypnosis. or of medical or psychological treatment. (b) Notwithstanding the provision of subsection (a), a minor may, with the approval of the Attorney-General, be hypnotised for the purpose of refreshing his memory in the course of a police or security investigation.

7. An authorised hypnotist shall not hypnotise another person for the pur• Hypnosis for pose of diagnosis, or of medical or psychological treatment save, on the ba• the purpose of diagnosis or sis of a decision taken by him and reduced into writing, as an activity sub• treatment. sidiary to his professional work as a physician, dentist or specialised psy• chologist.

8. An authorised hypnotist shall not hypnotise another person for the pur• Hypnosis for pose of scientific research save after approval of the research by the Advisory the purpose of scientific Board and with the written authorisation of the Director. research.

9. (a) Hypnosis for the purpose of refreshing a person's memory in the Hypnosis for course of a police or security investigation (hereinafter referred to as the purpose of refreshing memory "investigative hypnosis") may only be performed upon the decision of an ad in investigation. hoc committee. (b) Investigative hypnosis may only be performed by an authorised hypnotist who is a psychiatrist or a clinical psychologist.

235 /

(c) A person suspected of committing an offense shall not be subject to investigative hypnosis; he may, however, be hypnotised for the purpose of refreshing his memory if he so requests in writing with a view to proving his innocence; the request shall be made and the hypnosis performed in the presence of his advocate. (d) The Minister of Justice may, in consultation with the Minister of Health and with the approval of the Constitution, Legislation and Juridical Committee of the Knesset, make regulations as to any matter relating to in• vestigative hypnosis, including the appointment, composition and work procedures of, and the matters to be considered by, committees under subsec• tion (a), the sound-recording or filming of the hypnotic process, the ques• tions permitted to be asked and the persons permitted to be present. (e) • Nothing said by a person under investigative hypnosis may be used as evidence against him in any proceeding. (0 The provisions of this section shall not vary the rules of evidence.

Onus of proof. 10. A person who alleges that any consent, approval, authorisation or deci• sion under section 5, 6(b), 7, 8 or 9 has been given shall bear the onus of proof.

Chapter Three: Authorisation to Practise Hypnotism and Registration in Register

Who is entitled 11. A person is entitled to be authorised to practise hypnotism if - to be authorised to practise (1) he is a resident of Israel and hypnotism. (2) he is a physician, a dentist or a specialised psychologist and (3) he has completed recognised studies in hypnotism and passed examinations recognised by the Director.

Application 12. (a) A person wishing to be authorised to practise hypnotism shall and decision. make application to the Registrar. (b) If the Registrar decides that the applicant meets the conditions of entitlement to authorisation to practise hypnotism, he shall grant him authorisation and register him in the Register. (c) The instrument of authorisation shall indicate for which of the purposes specified in section 3 the authorisee, according to his qualifications, may practise hypnotism, and the authorisation may be subject to conditions; the purposes and conditions shall be stated in the Register.

236 (d) If the Registrar decides to refuse the application or to restrict, or attach conditions to, the authorisation, he shall give the applicant notice ac• cordingly. The Registrar shall not decide as aforesaid unless the applicant has been given an opportunity to state his case.

13. (a) The Director may direct that the authorisation be withheld even Decision to though the applicant meets the conditions imposed by section 11 if the Di• withhold authorisation. rector has reasonable grounds to suspect that the applicant has by negligence caused the death of, or seriously harmed, a person who availed himself of his services. (b) The authorisation may be withheld as aforesaid for a period of up to three months. If legal proceedings are taken against the applicant in connec• tion with the said suspicion, the Director may withhold the authorisation until the end of the proceedings. (c) The Director shall not direct that the authorisation be withheld un• less the applicant has been given an opportunity to state his case.

14. (a) The applicant may appeal to the District Court - Appeal. (1) against a decision of the Registrar to refuse the application or to restrict, or attach conditions to, the authorisation; (2) against a direction of the Director to withhold the authorisation; (b) The Minister of Justice shall enact, by procedural regulations, pro• visions as to any matter relating to an appeal under this section.

15. (a) The Registrar shall keep the Register. The particulars of registra• Keeping of tion shall be prescribed by regulations. Register. (b) An authorised hypnotist shall notify the Registrar, within thirty days, of any change in the particulars of registration relating to him and shall, at the Registrar's request, give him any other information for the pur• poses of registration in the Register.

16. (a) Where the physician's or dentist's licence of an authorised hypno• Cancellation tist, under the Physicians or Dentists Ordinance, or his registration as a psy• and suspension of authorisation chologist in the Register of Psychologists has been cancelled or suspended, to practise his authorisation to practise hypnotism shall be cancelled or suspended, as hypnotism. the case may be, and the cancellation or suspension shall be recorded in the Register.

237 (b) Where the authorisation of an authorised hypnotists has been can• celled or suspended in consequence of disciplinary proceedings under Chapter Four, the Registrar shall record such fact in the Register. (c) The Registrar shall cancel the authorisation of an authorised hypnotist and strike his name off the Register if the hypnotist requests him to do so.

Restricted permit 17. (a) Notwithstanding the provision of subsection 2(a), the Director for non-resident. may, at his discretion, grant a restricted permit to practise hypnotism, for one or some of the purposes specified in section 3, to a person who is not a resident of Israel and is not registered in the Register if he has had academic training in medicine or dentistry or has had specialised training in psychol• ogy which, in the opinion of the Director, is equivalent to the specialised training required by this Law.

(b) A restricted permit shall be for a period not exceeding six months each time and be subject to conditions prescribed by the Director. (c) The Director may, at his discretion, make the grant of a restricted permit subject to the completion of studies in hypnotism and/or the passing of examinations.

Chapter Four: Disciplinary Measures

Disciplinary 18. An authorised hypnotist is guilty of a disciplinary offence if - offences. (1) he conducts himself in a manner unbecoming an authorised hypno• tist or (2) he obtained his authorisation by misrepresentation or (3) he displays incapacity, irresponsibility or gross negligence in carrying out his functions as an authorised hypnotist or (4) he infringes a provision of this Law or of regulations thereunder or (5) he is convicted of an offence which indicates that he lacks the re• sponsibility required of an authorised hypnotist

Rules as to 19. (a) The Minister may cancel the authorisation of an authorised hypno• physician and tist being a physician or dentist (hereinafter referred to as "the person com• dentist. plained against"), or direct that his authorisation be suspended for a period, not exceeding five years, prescribed by him, or give him a reprimand or warning, if it appears to him, on the strength of a private complaint in writ-

238 ing by the Director or an injured party, that the person complained against has committed a disciplinary offence. (b) The Minister shall not direct as specified in subsection (a) save if the person complained against has been given an opportunity to submit a defence in writing and to state his case to a disciplinary committee, and tak• ing account of the recommendation of such committee. (c) (1) In the case of a person complained against who is a physician, the disciplinary committee shall be a committee appointed by the Minister under section 44 of the Physicians Ordinance, provided that one of the members of the committee shall be a physician au• thorised to practise hypnotism who is not an employee of the Ministry; the provisions of sections 44 to 47 of the Physicians Ordinance shall apply mutatis mutandis. (2) In the case of a person complained against who is a dentist, the disciplinary committee shall be a committee appointed by the Minister under section 47 of the Dentists Ordinance, provided that one of the members of the committee shall be a dentist authorised to practise hypnotism who is not an employee of the Ministry; the provisions of section 47 to 51 of the Dentists Ordinance shall ap• ply mutatis mutandis. (d) Where the authorisation of an authorised hypnotist is cancelled at his request after a complaint against him has been submitted to the Minister, the Minister may, upon the recommendation of a disciplinary committee pre• scribe that the cancellation shall be treated in like manner as the cancellation of the authorisation of a person complained against under subsection (a).

20. (a) Where an authorised hypnotist being a specialised psychologist Rules as to commits a disciplinary offence, he shall be regarded as guilty of a disci• specialised psychologist. plinary offence under the Psychologists Law and the provisions of Chapter Five of that Law shall apply, provided that one of the members of the disci• plinary committee hearing his case shall be a specialised psychologist authorised to practise hypnotism who is not an employee of the Ministry.

(b) A disciplinary committee shall be competent also to cancel an au• thorisation to practise hypnotism granted to a specialised psychologist or di• rect that it be suspended for a period not exceeding five years.

21. (a) Where the authorisation of an authorised hypnotist has been can• Renewal of celled under this chapter, an application for its renewal may only be consid• authorisation. ered after the expiration of seven years, or a shorter period to which the Min-

239 ister has consented on the recommendation of the disciplinary committee, from the date of the cancellation decision. (b) An authorisation shall not be renewed unless the applicant proves the existence of special conditions justifying its renewal.

Saving of powers, 22. The provisions of this chapter shall add to, and not derogate from, any rights and duties. powerS) rights and duties under the Physicians Ordinance, the Dentists Ordi• nance and the Psychologists Law.

Chapter Five: Miscellaneous Provisions

Appointment 23. (a) The Minister shall appoint a physician employed by the Ministry of Registrar. to be the Registrar of Authorised Hypnotists and may appoint an Assistant Registrar. (b) Notice of the appointment of the Registrar and an Assistant Regis• trar shall be published in Reshumot.

Advisory Board. 24. (a) The Minister shall appoint an Advisory Board of not less than five and not more than seven members. The chairman of the Board shall be the Director-General of the Ministry of Health or an employee of the Ministry appointed by him.

(b) Three members of the Board shall be appointed from lists submit• ted to the Minister by the Scientific Council of the Israel Medical Associa• tion, the Scientific Council of the Israel Dental Association and the Psy• chologists' Council, one from each list. (c) At least three members of the Board shall be authorised hypnotists. (d) The period of tenure of a member of the Board shall be three years from the date of his appointment, and he may be reappointed. Notice of the appointment of a member of the Board shall be published in Reshumot. (e) Three members of the Board shall be a quorum at its meetings. (0 The Board may prescribe the procedure of its business as far as it is not prescribed by this Law.

Secrecy. 25. (a) Information concerning any person which reaches to an authorised hypnotist through or in consequence of his professional work shall be kept secret by him and he may only disclose it -

240 (1) if its disclosure is, in his opinion, required for the treatment of that person or (2) if its disclosure is required or permitted by Law or (3) if the person to whom it relates has consented in writing to its dis• closure and has not, in writing, withdrawn his consent. (b) The provisions of this section shall apply also to a person who re- peives information as aforesaid from an authorised hypnotist. (c) For the purposes of this section - (1) "information" includes any document containing information; (2) it shall be immaterial whether the information relates to a person treated by the hypnotist or to any other person.

26. (a) An authorised hypnotist shall, at the request of a person whom he Delivery of has hypnotised, transmit to him the gist of what he said during hypnosis information to persons who have and, if the process was recorded or filmed, shall enable him to hear or see the been hypnotised. recording or film or a copy thereof. (b) If the authorised hypnotist is of the opinion that the requesting person's health may be impaired thereby, he shall not transmit the informa• tion, recording or film to him, but shall transmit it to his physician, or to a specialised psychologist on his behalf, who shall decide whether to transmit it, wholly or in part, to the requesting person.

27. (a) A person shall be liable to imprisonment for a term of one year if - Penalties. (1) he contravenes the provisions of Chapter Two, except section 2(b), or (2) he infringes the duty of secrecy under section 25. (b) A person who contravenes the provisions of section 2(b) or 15(b) shall be liable to a fine.

28. The Minister shall, after consultation with the Advisory Board, make Regulations, regulations as to - (1) recognised studies in, and the teaching of, hypnotism; (2) the particulars and procedure of examinations; (3) rules as to the approval and conduct of research;

241 (4) rules as to the hypnotising of minors, mentally sick persons and legally incompetant persons for the purposes and in the cases permitted under section 6; (5) rules as to hypnosis in the scientific teaching of hypnotism.

Fees. 29. The Minister may, with the approval of the Labour and Social Affairs Committee of the Knesset, prescribe fees to be paid for examinations and for authorisation to practise hypnotism and annual fees to be paid by an autho• rised hypnotist

Implementation 30. The Minister is charged with the implementation of this Law and may and regulations. make regulations as to any matter relating to its implementation.

Transitional 31. (a) The provision of section 9(b) shall not apply to a psychologist, provisions as to within the meaning of the Psychologists Law, who, within the framework of investigative hypnosis. his work with the Israel Police, practised investigative hypnosis for at least one year immediately preceding the coming into force of this Law. (b) Where the holder of a bachelor's degree in psychology from an in• stitution of higher education in Israel practised investigative hypnosis for at least one year immediately preceding the coming into force of this Law within the framework of his work with the Israel Police, the provision of section 9(b) shall not apply to him for three years from the coming into force of this Law, provided that any investigative hypnosis performed by him shall be under the supervision of an authorised hypnotist who is a psychia• trist or a clinical psychologist Where within the said three years such a per• son is registered in the Register of Psychologists, subsection (a) shall apply. (c) Where it appears to the Director that a person meets the conditions imposed by subsection (a) or (b), he shall direct that he be registered in the Register with a note setting out the restrictions applying to him.

Commencement 32. (a) This Law shall come into force three months from the date of its and transitional publication. provisions. (b) Notwithstanding the provisions of section 24(d), the first appoint• ment of members of the Advisory Board shall be for a period of one year and the condition imposed by section 24(c) shall not apply, provided that three of the members have practised hypnotism de facto, on a substantial scale, for a period of at least five years. (c) For two years from the date of publication of this Law, the Direc• tor may at his discretion, with the approval of the Advisory Board, exempt

242 from the requirements of section 11(3) any applicant who has practised hyp• notism de facto, on a substantial scale, for a period of at least five years.

33. This Law shall be published within twenty days from the date of its Publication, adoption by the Knesset

YITZCHAK SHAMIR ELBEZER SHOSTAK Prime Minister Minister of Health CHAIM HERZOG President of the State

243 (No. 75)

INVESTMENTS BY PUBLIC IN FINANCIAL ASSETS IN ISRAEL 5744-1984״ ,PROTECTION) LAW)

by-the-public" means the financial assets־Definitions. 1. In this Law, "investments enumerated in the Schedule.

Protection of 2. (a) The Government shall not expropriate investments-by-the-public investments by created before the coming into force of this Law and shall not change for the the public. worse the conditions prescribed for them before its coming into force. (b) The Government shall not expropriate investments-by-the-public created after the coming into force of this Law and shall not change for the worse the conditions prescribed for them at the time of their creation, whether such conditions are identical with the conditions prescribed for in vestments-by-the-public of the same type immediately before the coming into force of this Law or whether they are different therefrom. (c) In this section, "conditions" means - (1) the amount payable on repayment or redemption; (2) the date of repayment or redemption; (3) the rate, and date of payment, of interest; (4) the base and rate of linkage; (5) the rate of tax applicable; as the case may be.

Entrenchment 3. This Law shall not be varied and no deletion shall be made in the of Law. Schedule save by a majority of the members of the Knesset.

Addition to 4. The Minister of Finance may, with the approval of the Finance Com Schedule. mittee of the Knesset, add to the Schedule.

* Passed by the Knesset on the 2nd Tammuz, 5744 (2nd July, 1984) and published in Sefer Ha-Chukkim No. 1121 of the 11th Tammuz, 5744 (11th July, 1984), p. 178; the Bill and an Explanatory Note were published in Halza'ol Chok No. 1691 of 5744, p. 287.

244 SCHEDULE (Section 1)

1. A deposit to which an order under section 5(a)(2) of the Encouragement of Saving (Guarantee of Loans; Income Tax Reductions) Law, 5716-19561 (hereinafter referred to as "the Encouragement of Saving Law") applies.

2. Negotiable bonds, not convertible into shares, to which an order under section 5(a)(3) of the Encouragement of Saving Law applies.

3. Bonds or loan certificate of the State, issued under Law.

4. Securities to which a Notice as to Arrangements for the Acquisition of Securities2 applies.

5. A resident's or resident's (restitution) deposit, within the meaning of the Currency Control Permit, 5738-19783.

6. Member's rights in a benefit fund within the meaning of section 47 of the Income Tax Ordinance4.

7. A life insurance policy issued in Israel.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5716, p. 52 - LSI vol. X, p. 49; Sefer Ha-Chukkim of 5744, p. 76 - supra, p. 100. 2) Yalkut Ha-Pirsumim of 5744, Nos. 2971, 3007 and 3024. 3) Kovetz Ha-Takkanot of 5738, p. 1006; Kovetz Ha-Takkanot of 5744, p. 768. 4) Dinei Medina! Yisrael (Nusach Chadash) No. 6, p. 120 - NV vol. I, p. 145; Sefer Ha-Chukkim of 5744, p. 162 - supra, p. 221. (No. 76)

LAND APPRECIATION TAX (AMENDMENT No. 15) LAW, 5744-1984*

1 Amendment 1. In section 1 of the Land Appreciation Tax Law, 5723-1963 (hereinafter to section l. referred to as "the principal Law") -

(1) in the definition of "real estate right", after the words "in equity", there shall be inserted the words "including an authorisation to use land which as to its content may be regarded as ownership or a long-term lease"; (2) the following definitions shall be added at the end: "appreciation tax" and "tax" have the meaning assigned to these terms in section 6;

"the Ordinance" means the Income Tax Ordinance2; "linkage differentials and interest" means an addition to the amount in question in accordance with the rate of increase of the index in the relevant period, plus 4 per cent per annum of the amount in question (both additions together hereinafter referred to as "the increase-of-index addition"), plus 0.5 per cent of the amount in ques tion (or another rate prescribed by the Minister of Finance with the approval of the Finance Committee of the Knesset) in respect of each day of the excess period where such period is expressed in a positive amount or minus a rate as aforesaid of the amount in question in respect of each day of the excess period where such pe riod is expressed in a negative amount, provided that no amount in excess of the increase-of-index addition shall be deducted; for this purpose -

"index" means the consumer price index published by the Central Bureau of Statistics;

* Passed by the Knesset on the 2nd Tammuz, 5744 (2nd July, 1984) and published in Sefer Ha-Chukkim No. 1121 of the 11th Tammuz, 5744 (11th July 1984), p. 179; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1654 of 5744, p. 102. 1) Sefer Ha-Chukkim of 5723, p. 156 - LSI vol. XVII, p. 193; Sefer Ha-Chukkim of 5743, p. 104 - LSI vol. XXXVH.; Sefer Ha-Chukkim of 5744, p. 60 - supra, p. 77. NV vol. I, p. 145; Sefer ־ Dinei Medinat Yisrael (Nusach Chddash) No. 6, p. 120 (2 Ha-Chukkim of 5744, p. 162 - supra, p. 221. "rate of increase of index", in relation to a particular period, means the difference between the index last published before the beginning of the period (hereinafter referred to as "the basic index") and the index last published before the end of the period (hereinafter referred to as "the new index"); "the excess period" means the number of days from the date of publication of the new index until the end of the period, less the number of days from the date of publication of the basic index until the beginning of the period.".

2. The following section shall be inserted after section 16 of the principal Addition of Law: section 16A.

"Imposition of 16A. (a) In this section - appreciation tax and acquisiton tax "Israeli national" means either of the following: in a zone. (1) a person registered or required to be registered in the Population Registry of Israel; (2) a body of persons resident in Israel; "Israeli national" and "resident in Israel" have the respective meanings assigned to these terms in sec tion 1 of the Ordinance; "zone" means either of the following: Judea and Samaria and the Gaza Region; "land" includes houses, buildings and everything permanently fixed to the land. (b) An Israeli national who sells or acquires a real estate right in land situated in a zone shall, for the pur poses of this Law, be regarded as selling or acquiring a real estate right in land situated in Israel. c) Where a non-resident body of persons of which) ־ an Israeli national is a member sells or acquires a real es tate right in land situated in a zone, then the Israeli na tional shall, for the purposes of this Law, be regarded as selling or acquiring a proportionate part of the real estate right, and the following provision shall apply: for the purpose of calculating the appreciation and the tax, the date of acquisition is the day on which the Israeli national acquires his rights in the body of persons or the day on

247 whieh the body of persons acquires the real estate right, whichever is the later. (d) Notwithstanding the provisions of subsection (c), the sale of a dwelling by a body of persons shall not, for the purpose of exemption under Chapter Five "A", be regarded as the sale of a residential apartment. (e) Where a body of persons which has land in a zone would be regarded as a real estate association if it were an association and the land were in Israel, it shall be regarded as a real estate association, an Israeli national who performs an act in respect of it shall be regarded as performing an association act and an Israeli national who acquires a right in it shall be regarded as acquiring a real estate association right.

(0 Where an Israel national is liable to apprecia• tion tax or acquisition tax under this section, there shall be deducted from the amount of tax to which he is liable any amount of tax or fee paid by him to the authorities of the zone in respect of that sale or association act; and if his liability is as referred to in subsection (c), there shall be deducted a proportionate part of the amount paid as aforesaid by the body corporate of which he is a mem• ber.

(g) For the purposes of this section, "proportionate part" means the share of the Israel national in the rights to the profits of the body corporate or his share in the assets of the body at the time of winding-up, whichever is more.".

Replacement 3. Section 12 of the principal Law shall be replaced by the following sec- of section 12. tinn•

"Imposition of 12. A real estate association act which, as to its content, tax on association may be regarded as the sale of a real estate right shall, on act as if it were a sale. the application of the performer of the act, be deemed to be a sale of the real estate right by the performer of the act, and the following provisions shall apply for the pur• pose of calculating the appr ciation and the tax: (1) the date of acquisition shall be the day on which the performer of the act acquired the associa-

248 tion right or the day on which the association ac• quired the real estate right, whichever is the later; however - (a) if the performer of the act had acquired his association right under circumstances exempt• ing from tax by virtue of section 62 or 69, the date of acquisition shall be the day which would have been determined as the date of ac• quisition under this section if the act had been performed by the person from whom the per• former of the act had acquired the right;

(b) if the acquisition of the real estate right by the association was exempt from tax under section 64, 65 or 70, the date of acquisition shall be the day which would have been deter• mined as the date of acquisition if the real es• tate right had been sold by the association or the day on which the performer of the act ac• quired the association right, whichever is the later;

(2) the expenses deductible under sections 43 to 45 incurred in respect of the real estate right shall be permitted for deduction.

4. In section 16 of the principal Law, subsection (c) is hereby repealed. Amendment of section 16.

5. Section 18 of the principal Law is hereby repealed. Repeal of section 18.

6. In section 19 of the principal Law, the following paragraph shall be Amendment of added at the end: section 19. "(3) in the case of the sale of a real estate right by the State of Israel, the Development Authority or the Keren Kayemet Le-Yisrael, it shall be the day on which the transaction is approved by the Director of the Israel Lands Administration or a person empowered by him in that behalf.".

7. In section 21(b) of the principal Law, the subsection-mark "(a)" and Amendment of subsection (b) shall be deleted. section 21.

8. Section 23 of the principal Law is hereby repealed. Repeal of section 23.

249 Replacement 9. Section 26 of the principal Law shall be replaced by the following sec• of section 26. tion:

"Acquisition value 26. (a) The acquisition value of a real estate right or in the case of real estate association right which accrued to the seller or transmission by way of inheritance. performer of the act through transmission by way of in• heritance or through renunciation by another person of his right to inherit it shall be as follows: (1) where the deceased died before the 26th Adar Bet, 5741 (1st April, 1981) - its value on the date of the death of the deceased or, if its value was deter• mined for the purposes of estate duty, the value so determined: Provided that if the Director is of the opinion that the value determined for the purposes of estate duty is greater than the value of the right under this Law on the date of the death of the de• ceased, and the seller or performer of the act does not prove that the value determined for the purposes of estate duty is different from the value declared in the return under the Estate Duty Law, 5709-19491, the acquisition value of the right shall be its value on the date of the death of the deceased;

(2) where the deceased died on or after the 26th Adar Bet, 5741 (1st April, 1981), the value which would have been determined under this Law if the right had been sold by the deceased. (b) If the Director, under subsection (a)(1), deter• mines an acquisition value different from the value de• termined for the purposes of estate duty, and the estate duty paid in respect of the real estate right was more than the person liable to the duty would have had to pay if the value of the right for the purposes of estate duty had been the acquisition value determined by the Director, the seller or performer of the act shall be credited with an amount of appreciation tax equal to the difference be• tween the estate duty paid in respect of the right and the estate duty he would have had to pay as aforesaid, plus linkage differentials and interest on the amount of the

1) Sefer Ha-Chukkim of 5709, p. 187; LSI vol. JH, p. 95.

250 difference from the date of payment of the estate duty un til the date of the sale.".

10. The following section shall be inserted after section 26 of the principal Addition of Law: section 27.

"Acquisition 27. The acquisition value of a real estate right or real value of gift not estate association right which accrued to the seller or recognised for purposes of estate performer of the act through a transfer without considera duty. tion to which section 3(a)(3) of the Estate Duty Law, 5709-1949, applied is the value according to section 26(a)(1): Provided that if the seller, at the time prescribed in section 73, made a declaration in respect of the acquisition of the right and, before the death of the de ceased, paid the acquisition tax to which he was liable, the value shall, on the application of the seller or per former of the act, be as provided in the closing passage of section 29.".

11. In section 29 of the principal Law, the figure "67" shall be inserted after Amendment of the figure "66". section 29.

12. In section 32 of the principal Law, the words "under section 64" shall be Amendment of inserted after the words "which has been appropriated", and the words "and in section 32. an exchange under section 65 accompanied by the payment of a balance in money or money's worth, the acquisition value shall be such part of the aforesaid acquisition value as bears to the whole thereof the same proportion as the value of the real estate right received as a consideration bears to the whole of the consideration" shall be added at the end.

13. In section 37(1) of the principal Law, subparagraph (f) shall be replaced Amendment of by the following subparagraphs: section 37.

"(f) where the acquisition value of the real estate right is determined under section 26(a)(1), including where it is so determined by virtue of ;the date of the death of the deceased ־ section 27 (g) where the acquisition value of the real estate right is determined under section 26(a)(2) or, if section 27 applies to the seller, under the closing passage of section 29 - the day which would have been deter mined as the date of acquisition if the real estate right had been sold by the deceased;".

251 ־ Amendment of 14. In section 39 of the principal Law section 39. (1) the opening passage shall be replaced by the following opening passage: "The following expenses are deductible for the purpose of determining the amount of appreciation, if they are not deductible under the Ordi nance:"; (2) in paragraph (2), the words "other than a residential apartment" shall be deleted; (3) in paragraph (8), the closing passage, beginning with the words "except if such tax or rate" shall be deleted; (4) in paragraph (12)(b), the words "an exchange" shall be replaced by the words "a tax-exempt exchange", and the words "and if the right was obtained through an exchange accompanied by the payment of a balance in money or money's worth, as specified in section 32, such part of the aforesaid expenditure as bears to the whole thereof the same proportion as the value of the real estate right received as a consideration bears to the whole of the consideration" shall be added at the end.".

Repeal of 15. Section 41 of the principal Law is hereby repealed. section 41.

Amendment of 16. In section 48(a) and 48A(c) of the principal Law, the words "the infla sections 48 and tionary surplus" shall be replaced by the words "the inflationary amount". 48A.

Amendment of 17. In section 48C(a) of the principal Law, the opening passage shall be re section 48C. placed by the following opening passage: "Upon the sale of a real estate right by way of expropriation, or upon the sale of a real estate right in which, un der section 65, the seller is regarded as selling a proportionate part of the right, credit shall be granted against the tax to which the seller is liable in respect of the right or the proportionate part of the right, as follows:".

Repeal of 18. Section 491 of the principal Law is hereby repealed. section 491.

Amendment of 19. In paragraph (3) of section 51, and paragraph (3) of section 52, of the sections 51 and 52. principal Law, the words "and the power of attorney is valid for a period ex ceeding six months" shall be deleted.

Amendment of 20. In section 61 of the principal Law, subsection (b) shall be replaced by section 61. the following subsection:

252 "(b) The sale of a real estate right by a public institution - (1) if the land the right in which is being sold was in the hands of the institution for a period of not less than one year and served the institution directly for a period of not less than eighty per cent of the period during which the real estate right was in the hands of the institution - shall be exempt from tax; (2) if the land the right in which is being sold served the institu• tion directly for a period shorter than eighty per cent of the period during which the real estate right was in the hands of the institu• tion, or did not serve the institution at all, and - (a) the real estate right was in the hands of the institution for a period of not less than one year and not more than four years - shall be exempt from such part of the tax as bears to the whole thereof the same proportion as the period during which the land served the institution directly bears to the whole of the period during which the right was in its hands;

(b) the real estate right was in the hands of the institution for a period exceeding four years - shall be exempt from half the tax, and if the land served the institution directly, shall, in ad• dition to the aforesaid exemption, be exempt also from such part of the other half of the tax as bears to the whole of such half the same proportion as the period during which the land served the institution directly bears to the whole of the period during which the right was in its hands.".

21. Section 65 of the principal Law shall be replaced by the following sub• Replacement of section: section 65.

"Exemption in 65. An exchange of land pursuant to an order of a com• certain cases of petent authority made under any law shall, if not accom• exchange. panied by the payment of a balance in money or money's worth, be exempt from tax. Where a balance is paid as aforesaid, the seller shall, for the purpose of calculating the appreciation and the tax, be regarded as selling such part of the real estate right given up by him as bears to the whole of such right the same proportion as the said balance bears to the whole of the consideration received by him for the real estate right given up.".

253 Amendment of 22. In section 73 of the principal Law - section 73. (1) in subsections (a)(2), (b)(2) and (c), the words "forty-five days" shall be replaced by the words "fifty days"; (2) in subsection (b), after the words "A person who performs a real estate association act", there shall be inserted the words "other than an act exempt from tax under section 57"; (3) the following subsection shall be inserted after subsection (c): (cl) Notwithstanding the provisions of subsections (a)(2), (b)(2) and (c), a declaration not made at the time prescribed for making it shall be regarded as a declaration which is not a self-assessment.".

Amendment of 23. In section 78 of the principal Law - section 78. (1) in subsection (a), the words "thirty days" shall be replaced by the words "forty-five days"; (2) the following subsection shall be added after subsection (d): "(e) The provisions of subsections (a) to (d) relating to the as• sessment of the tax shall also apply, mutatis mutandis, to the as• sessment of acquisition tax where the declaration of the acquirer under section 73(c) has been made. For the purposes of subsection (d) and this subsection, where a declaration has been made as a self- assessment and the tax due thereunder is not paid in time, it shall be regarded as a declaration which is not a self-assessment".

Repeal of 24. Section 80 of the principal Law is hereby repealed. section 80.

Amendment of 25. In section 82 of the principal Law - section 82. (1) in the marginal note, the words "or acquirer" shall be inserted after the words "by seller"; (2) after the words "the performer of an association act", there shall be inserted the words "or a declara-tion by the acquirer" and the words "a declaration from the seller or the performer of the act" shall be replaced by the words "the making of the declaration".

Amendment of 26. In section 91(a) of the principal Law, the words "which he may still be section 91. owing" shall be replaced by the words "the linkage differentials and interest and the fine which he may still be owing; the guarantee shall be in force un• til a final judgment is given; the Director shall prescribe rules for the

254 calculation of the amount of the presumable linkage differentials and interest".

27. In section 92 of the principal Law, the word "interest" shall be replaced Amendment of by the words "linkage differentials and interest". section 92.

28. In section 94 of the principal Law - Amendment of section 94. (1) in subsection (a) - (a) the expression "section 51 or 52" shall be replaced by the expression "section 5(b)(1), 51 or 52"; (b) the closing passage, beginning with the words "shall, from the said times...be charged" shall be replaced by the words "shall, from the said times, as the case may be, until the date of payment, have linkage differentials and interest added to them"; (2) subsection (b) shall be replaced by the following subsection: "(b) Subsection (a) shall not apply in respect of the period up to the time prescribed in section 91 for the payment of the tax if the self-assessment has been made and the tax thereunder paid in time and the difference between the tax fixed in the provisional or final assessment and the amount of tax paid under the self-assessment does not exceed ten per cent.". (3) in subsection (c), the words "the whole or part of the interest" shall be replaced by the words "the whole or part of the linkage differentials and interest". (4) subsection (d) is hereby repealed; (5) the following subsection shall be added at the end: "(e) The time for the payment of the linkage differentials and interest under subsection (a) shall be - (1) in the case of linkage differentials and interest accumu• lated up to the time prescribed in section 91 for the payment of the tax - the time for the payment of the tax; (2) in the case of linkage differentials and interest accumu• lated after the time referred to in paragraph (1) - fourteen days from the last day of every fourteen-day period of delay.".

255 Replacement of 29. Section 103A of the principal Law shall be replaced by the following section 103A. section:

"Linkage 103A. Amounts to be refunded under section 102 or 103, differentials and as well as linkage-differentials-and-interest, interest and interest on refund. fines paid in respect thereof, shall be refunded with the addition of linkage-differentials-and-interest for the period from the date of payment to the date of the refund.".

Commencement, 30. (a) Section 91(a) of the principal Law, as amended by section 26, application and shall, in the period from the date of publication of this Law until the 30th transitional provisions. September, 1984, be read as if the words "the linkage differentials and inter• est and the fine" and the words "the presumable linkage differentials and in• terest" were respectively replaced by the words "the interest and the fine" and the words "the presumable interest". (b) Sections 27, 28(l)(b) and 28(4) shall come into force on the 1st October, 1984: Provided that for the purposes of sections 92 and 94(a) of the principal Law, as amended, amounts of interest accumulated under section 94 up to the 30th September, 1984, and not paid by that date shall be regarded as tax and shall have linkage differentials and interest added to them from the 1st October, 1984. (c) Section 94(e) of the principal Law, as enacted by section 28(5), shall, in the period from the date of publication of this Law until the 30th September, 1984, be read as if the words "for the payment of linkage differ• entials and interest" in the opening passage and the words "in the case of linkage differentials and interest accumulated" in paragraphs (1) and (2) were respectively replaced by the words "for the payment of interest" and the words "in the case of interest accumulated". (d) Notwithstanding section 29, where amounts to be refunded under section 103A of the principal Law in respect of an amount of money paid by the 30th September, 1984, are refunded after that date, they shall be refunded with the addition of interest from the date of payment until that date, at the rates applicable by virtue of the principal Law to delays in the payment of tax in the said period, and with the addition of linkage differentials and inter• est on the said amounts and interest from the 1st October, 1984, until the date of the refund.

256 (e) The other sections of this Law shall apply in respect of sales and association acts made or done on or after the date of publication of this Law.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the Slate (No. 77)

INCOME TAX ORDINANCE (AMENDMENT No. 62) LAW, ״5744-1984

Amendment of 1. In section 9 of the Income Tax Ordinance1 (hereinafter referred to as "the section 9. Ordinance"), in paragraph (6F), the words "(hereafter in this paragraph referred to as "the pension")" and the words "on condition that the person entitled to the pension has no income under section 2(1), 2(2) or 2(6)" shall be deleted.

Amendment of 2. In section 121 of the Ordinance - section 121. (1) in subsection (a), the figures "98,400", "31,200" and "48,000" shall respectively be replaced by the figures "1,428,000", "456,000" and "696,000"; (2) in subsection (b), the words "on the first 72,000 shekalim of in come derived from personal exertions or from house property - 25 per cent" shall be replaced by the words "on every shekel of the first 528,000 shekalim of income derived from personal exertions or from house property - 20 per cent, and on every shekel of the next 492,000 shekalim of income as aforesaid - 30 per cent" and the figure "72,000" shall be replaced by the figure "1,020,000".

Amendment of 3. In section 122(a) of the Ordinance, after the words "provided that it shall section 122. not be less than 25 per cent -", there shall be inserted the words "in respect of income of any of the following categories in brackets the rate of tax in which is 30 per cent or more" and the words "in respect of any of the following categories of income" shall be deleted.

Commencement. 4. This Law shall have effect from the 28th Adar Bet, 5744 (1st April, 1984).

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the State

Passed by the Knesset on the 2nd Tammuz, 5744 (2nd July, 1984) and published in Sefer Ha-Chukkim No. 1121 of the 11th Tammuz. 5744 (11th July, 1984), p. 185; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1685 of 5744, p. 268.

1) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120 - NV vol. I, p. 145; Sefer Ha-Chukkim of 5744, pp. 19, 47, 56, 124, 161 and 162 - supra, pp. 25, 56, 67, 169, 220 and 221.

258 (No. 78)

INCOME TAX ORDINANCE (AMENDMENT No. 65) (AMENDMENT) LAW, ״5744-1984

1 1. Section 20A3 of the Income Tax Ordinance (hereinafter referred to as Repeal of "the Ordinance") is hereby repealed. section 20A3.

2. Section 43 of the Ordinance is hereby repealed. Repeal of section 43.

3. Sections 46 to 46C of the Ordinance shall be replaced by the following Replacement of sections: sections 46 to 46C.

"Contribution to 46. (a) Where, in any tax year, a person contributes an public institution. amount exceeding 10,000 shekalim to a national fund or to a public institution within the meaning of section 9(2), designated by the Minister of Finance for this pur pose with the approval of the Finance Committee of the Knesset, 35 per cent of the amount of the contribution shall be credited against the tax due from him in that year: Provided that no credit shall be given in any year for an aggregate amount of contributions exceeding 25 per cent of the chargeable income of the assessee or 10,000,000 shekalim, whichever is less. (b) The amounts under subsection (a) shall be ad justed in every tax year in accordance with the rate of in crease of the index from the index published in the month of August preceding the tax year to the index published in the month of August of the tax year. An amount in creased as aforesaid shall be rounded off to the nearest multiple of 100 shekalim. The Commissioner shall publish in Reshumot a notice of the amounts increased and rounded off as aforesaid.

* Passed by the Knesset on the 2nd Tammuz, 5744 (2nd July, 1984) and published mSefer Ha-Chukkim No. 1121 of the 11th Tammuz, 5744 (11th July, 1984), p. 187; the Bill and an Explanatory Note were published in Hatza'ot Ckok No. 1682 of 5744, p. 256. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120 - NV vol. I, p. 145; Sefer Ha-Chukkim of 5744. pp. 19. 47. 56, 124, 161, 162 and 187 - supra, pp. 25, 56, 67, 169, 220 and 221; Mia. 260. 259 (c) In this section, "national fund" means the Jew• ish Agency, the World Zionist Organisation, the United Israel Appeal and the Keren Kayemet le-Yisrael.

Overall ceiling for 46A. Notwithstanding the provisions of any law, the tax benefits in aggregate amount for which, in any tax year, there shall respect of contributions be allowed a credit in respect of contributions, under sec• and R & D. tion 46, and a deduction in respect of participation in the financing of research and development carried out by an• other person, under section 20A and the Income Tax Concessions Law (Investment in Securities) (Consideration Earmarked for Scientific Research), 5744- 19831, shall not exceed 45 per cent of the chargeable in• come of the assessee in that year; for this purpose, "chargeable income" means chargeable income before de• duction for participation in research and development

Credit for 46B. An amount of tax from the payment of which a contribution person is exempt by reason of a credit for a contribution shall be added to basis of advance under section 46 or any other law shall be added to the payments. amount of tax which forms the basis for the fixing of advance payments under section 175.".

Repeal of 4. Section 48 of the Ordinance is hereby repealed. section 48.

Amendment of 5. The following paragraph shall be added at the end of section 190(a) of the Ordinance: "(3) for thé purpose of the reduction of the amount of advance payments under paragraph (2), in any tax year, otherwise than by reason of a de• duction in consequence of participation in the financing of research and development carried out by another person, under section 20A(a) or any other law, and otherwise than by reason of a credit for contributions, under section 46A or any other law, the tax from the payment of which the assessee is exempt by reason of the said deduction or credit shall not be included in the account of the tax under the return.".

Amendment of 6. In section 6 of the Income Tax Ordinance (Amendment No. 42) Law, Income Tax 5741-19802, the expression "1981 or 1982" shall be replaced by the expres• Ordinance (Amendment No. sion "1981,1982, 1983 or 1984". 42) Law.

1) Sefer Ha-Chukkim of 5744, p. 14; supra, p. 16. 2) Sefer Ha-Chukkim of 5741, p. 18 - LSI vol. XXXV, p. 19.

260 7. In the Land Appreciation Tax Law, 5723-19631 the following subsec• Amendment of Land Appreciation Tax tion shall be added at the end of section 61: Law. "(e) A public institution designated for the purposes of section 46(a) of the Income Tax Ordinance shall be deemed to have been designated also for the purposes of subsection (d).".

8. (a) Sections 2 to 5 shall apply from the tax year 1984; however - Application and transitional (1) in the case of contributions to the Society for the Security of Israel provisions. (LIBBI) - Fund for the Strengthening of the Israel Defence Forces, sec• tions 3 and 5 shall apply from the tax year 1985; (2) the adjustment of the amount under section 46(b) of the Ordinance, as enacted by this Law, shall first be made in the tax year 1985; (3) a person who before the 10th Sivan, 5744 (10th June, 1984) ap• plied for a certificate from the Assessing Officer that in the months of April and May, 1984, he made to a public institution a contribution to which section 46B of the Ordinance applied before its repeal by this Law shall be credited for such contribution with half the amount thereof. (b) Where on the date of the coming into force of this Law a person who has made a contribution to any institution is entitled to benefits under any of the sections of this Ordinance which are repealed or replaced by this Law, such institution shall be deemed to have been designated as a public institution under section 46(a) of this Ordinance, as enacted by this Law. (c) Where before the publication of this Law an institution applied to the Minister of Finance to designate it as an institution for the purposes of section 46B of the Ordinance as before its repeal by this Law, the Minister may, with the approval of the Finance Committee of the Knesset, designate it as such an institution, in respect of the tax year 1983, under the provisions of the said section as before its repeal by this Law: Provided that the rate of the credit to which the contributor is entitled shall not exceed 35 per cent of the amount of the contribution; and from the tax year 1984 onwards the in• stitution shall be deemed to have been designated as a public institution un• der section 46(a) of the Ordinance as enacted by this Law.

(d) Where the Commissioner approved an institution for the purposes of section 43 or 48 of the Ordinance before the repeal of the section by this Law and the approval expired before the publication of this Law, the Commis-

1) Sefer Ha-Chukkim of 5723, p. 256 - LSI vol. XVH, p. 193; Sefer Ha-Chukkim of 5743, p. 104 - LSI vol. XXXVJJ, p. 124; Sefer Ha-Chukkim of 5744, pp. 60 and 179 - supra, pp. 77 and 246.

261 sioner may approve the institution in respect of the tax year 1984, and such an approval shall be regarded as the designation of the institution as a public institution under section 46(a) of the Ordinance as enacted by this Law.

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG President of the Stale (No. 79)

5744-1984״ ,DISCHARGED SOLDIERS LAW

1. In this Law - Definitions. "the Defence Service Law" means the Defence Service Law (Consolidated Version), 5719-19591; "discharged soldier" means a person discharged after serving in regular service in the Israel Defence Forces or the Border Police under the Defence Service Law for a period of at least two years in the case of a man and for a period of at least a year-and-a-half in the case of a woman, as well as a person dis charged before the expiration of the said period by reason of invalidity within the meaning of the Invalids (Pensions and Rehabilitation) Law (Consolidated Version), 5719-19592; "preferred employment" means employment in a place or type of employ ment designated by the Minister of Labour and Social Affairs with the con sent of the Minister of Finance and in consultation with the Labour and So cial Affairs Committee of the Knesset; "vocational training" means vocational training for the purposes of preferred employment, provided within the framework of an institution recognised for that purpose by the Minister of Labour and Social Affairs with the consent of the Minister of Finance.

2. The Minister of Defence may prescribe that for the purposes of this Law Other military or of part thereof there shall also be regarded as a discharged soldier - service. (1) a person who volunteered for the Israel Defence Forces and served therein for a prescribed time; (2) a person discharged from regular service in the Israel Defence Forces or the Border Police under the Defence Service Law who does not meet the requirements of the definition of "discharged soldier" in section 1.

* Passed by the Knesset on the 2nd Tammuz, 5744 (2nd July, 1984) and published in Sefer Ha-Chukkim No. 1121 of the 11th Tammuz, 5744 (11th July, 1984), p. 188; the Bill and and an Explanatory Note were published in Hatza'ol Chok No. 1687 of 5744, p. 278. 1) Sefer Ha-Chukkim of 5719, p. 286; LSI vol. XJU, p. 328. 2) Sefer Ha-Chukkim of 5719, p. 276; LSI vol. XIII, p. 315.

263 all subject to the conditions and restrictions prescribed by the Minister of Defence with the consent of the Minister of Finance.

National service. 3. A woman who terminates a period of service of at least two years in na• tional service as referred to in paragraph (2) of the definition of "child" in section 5 of the National Insurance Law (Consolidated Version), 5728-19681, shall, for the purposes of this Law, be regarded as a discharged soldier.

Permanent service 4. Where after the period of service required of him under the Defence Ser• in the IDF. vice Law a person continues in permanent service in the Israel Defence Forces, the date of termination of his first period of service shall be regarded as the day on which he becomes a discharged soldier: Provided that for the purposes of sections 9 and 11 the date of his discharge from permanent ser• vice shall be regarded as the day on which he became a discharged soldier.

Duration of 5. The rights of a discharged soldier under this Law shall vest in him for entitlement. three years from the day on which he becomes a discharged soldier.

Precedence as 6. A discharged soldier shall, as regards assignment by employment bu• to assignment 2 to preferred reaux under the Employment Service Law, 5719-1959 , to any preferred employment. employment requiring resort to employment service bureaux under the said Law, take precedence over a person who is not a discharged soldier. Prece• dence under this Law shall prevail over any priority right under the said Law or any other enactment.

Priority as to 7. In a tender competition for employment held under any enactment, acceptance for priority shall be given to a discharged soldier taking part in the competition employment. over a person who is not a discharged soldier, provided that he possesses all the qualifications specified in the conditions of the competition and that his relevant data are not less favourable than those of the other participants.

Vocational 8. (a) A discharged soldier shall take precedence over a person who is not training. a discharged soldier as regards admission to vocational training provided by or on behalf of the State, so long as he meets the requirements for admission to such training. (b) A discharged soldier shall be entitled to partial exemption from tu• ition fee for vocational training, on conditions prescribed by the Minister of Labour and Social Affairs with the consent of the Minister of Finance.

1) Sefer Ha-Chukkim of 5728, p. 108; LSI vol. XXII, p. 114. 2) Sefer Ha-Chukkim of 5719, p. 32; LSf vol. XVII, p. 29.

264 Where vocational training is provided otherwise than by or on behalf of the State, the Treasury shall contribute to the tuition fees to the extent of the amount of the exemption to which the discharged soldier is entitled. The ex• emption and the Treasury's contribution shall be within the limits of the amount prescribed for this purpose in the Budget Law for the financial year in question. (c) The provisions of this section shall be in addition to, and not in derogation of, the provisions of sections 127K, 127M and 127P of the Na• tional Insurance Law (Consolidated Version), 5728-1968.

9. Where a discharged soldier completes his secondary education at an edu• Completion of cational institution managed under the supervision or with the approval of secondary education. the Ministry of Education and Culture, the Treasury shall bear 75 per cent of the tuition fees approved by the Minister of Education and Culture by rules with the consent of the Minister of Finance.

10. A discharged soldier shall, as regards admission to a particular course of Admission to study and to students' hostels at an institution for higher education, within institution of higher eduation. the meaning of the Council for Higher Education Law, 5718-19581, take precedence over a person who is not a discharged soldier, provided that he possesses the qualifications required at the institution in respect of that course and those hostels.

11. (a) A discharged soldier admitted to studies at an institution of higher Loan for post- education within the meaning of the studies. Council for Higher Education secondary studies» Law, 5718-1958, or at some other post-secondary institution recognised for that purpose by the Minister of Education and Culture shall be entitled to a loan to help him finance the tuition fee, in accordance with criteria and rules prescribed by the Minister of Education and Culture with the consent of the Minister of Finance. (b) The Minister of Finance shall prescribe the conditions of repay• ment of a loan as aforesaid.

12. Where a discharged soldier is entitled, under rules and procedures apply• Housing loan. ing thereto, to a loan by or on behalf of the State for the purpose of housing, the amount of the loan shall be increased at such rates and on such conditions as the Minister of Construction and Housing shall prescribe with the consent of the Minister of Finance.

1) Sefer Ha-Chukkim of 5718, p. 191; ¿5/ vol. XII, p. 222.

265 Amendment of 13. In the Income Tax (Concessions to Discharged Soldiers) (Temporary the Income Tax 1 (Concession's to Provisions) Law, 5741-1981 - Discharged Soldiers) (1) in section 1(1), in the definition "entitled employee", the figure (Temporary "1983" shall be replaced by the figure "1984"; Provisions) Law. (2) in section 2- (a) in paragraph (1), the figure "5/12" shall be replaced by the figure "6/12""; (b) in paragraph (2), the figure "5/24" shall be replaced by the figure "4/12"; (c) the following paragraph shall be added at the end: "(3) 2/12 of a credit point in respect of every whole month out of the next twelve months of his work in employment as aforesaid.".

Implementation 14. The Government is charged with the implementation of this Law and and regulations. may make regulations for its implementation.

YITZHAK SHAMIR Prime Minister CHAIM HERZOG President of the State

1) Sefer Ha-Chukkim of 5741, p. 145; LSI vol. XXXV, p. 157; Sefer Ha-Chukkim of 5743, p. 59; LS! vol. XXXVII, p. 61.

266 (No. 80)

LOCAL AUTHORITIES (INTEREST AND LINKAGE DIFFERENTIALS ON COMPULSORY PAYMENTS) (AMENDMENT) LAW, 5744-1984*

1. In section 1 of the Local Authorities (Interest and Linkage Differentials Amendment of on u״on Compulsory Payments) Law, 5740-19801 (hereinafter referred to as "the sec principal Law") - (1) in the definition of "compulsory payment", the following shall be added at the end: "and includes payment quotas imposed by an associa tion of towns on the local authorities within its area and taxes and pay ment quotas imposed by a regional council on a local committee"; (2) the definition of "the determining day" shall be replaced by the fol lowing definition: 'the determining day" means the first day of every month of the / year; ׳/ (3) the definition of "linkage differentials" shall be replaced by the fol lowing definition: ־ "linkage differentials'"' (1) in the case of a general rate payable under an instalment arrange ment, means an addition to such rate in accordance with the rate of in crease of the index from the index published in the month of February preceding the date of chargeability until the index preceding the index published immediately before the date of payment; (2) in the case of a general rate paid out of time, means an addition to such rate in accordance with the rate of increase of the index from the index published immediately before the date of chargeability until the index published immediately before the date of payment; (3) in the case of any other compulsory payment, means an addition to such compulsory payment in accordance with the rate of increase of the index from the index published immediately before the date of charge-

* Passed by the Knesset on the 2nd Tammuz, 5744 (2nd July, 1984) and published in Sefer Ha-Chukkim No. 1121 of the 11th Tammuz, 5744 (11th July, 1984), p. 190; the Bill and an Explanatory Note were published in Hatza'ol Chok No. 1684 of 5744, p. 263. 1) Sefer Ha-Chukkim of 5740, p. 46 - LSI vol. XXXIV, p. 47.

267 ability until the index published immediately before the determining day preceding the date of payment of the compulsory payment;"; (4) the definition of "delay payments" shall be replaced by the follow• ing definition: ""delay payments" means linked interest at the rate of 0.5 per cent per month from the date of chargeability of the compulsory pay• ment to the date of payment thereof, with the addition of linkage differentials.".

Amendment of 2. In section 2 of the principal Law - section 2. (1) the subsection mark "(a)" shall be inserted after the section number "2" and the words "two months" shall be replaced by the words "thirty days"; (2) the following subsection shall be added after subsection (a): "(b) Where a compulsory payment, required by enactment to be paid within a specific period, is not paid within thirty days from the day on which that period ends, the first day of that period shall be regarded as the date of chargeability of the said compulsory payment for the purpose of the addition of delay payments thereto.".

Amendment of 3. In section 4 of the principal Law - section 4. (1) in subsection (a), the closing passage, beginning with the words "Where an instalment arrangement has been prescribed", shall be re• placed by the words "Every payment under an arrangement as aforesaid shall be paid with the addition of linkage differentials"; (2) the following subsection shall be inserted after subsection (a): "(aa) Any such payment under an instalment arrangement by virtue of subsection (a) as is not made within thirty days from the date prescribed for it shall be made with the addition of delay pay• ments."; (3) subsection (c) shall be replaced by the following subsection: "(c) An instalment arrangement under subsection (b) in respect of a compulsory payment shall involve the addition of delay payments, for the purpose of whose calculation thé date of the arrangement shall be regarded as the date of payment.".

268 4. Section 6 of the principal Law shall be replaced by the following sec• Replacement of tion: section 6.

"Refund of 6. Where a person makes a compulsory payment to over payments. which he is not liable or in excess of the amount to which he is liable (such a payment hereinafter referred to as an "overpayment") and the overpayment is not re• funded within thirty days from the day on which it is made, the local authority shall refund it with the addition of differentials in accordance with the rate of increase of the index from the index published immediately before the date of payment of the compulsory payment until the index published immediately before the determining day preceding the date of the refund. Where the overpayment is not refunded within thirty days from the day on which the person who made it notifies the local authority, in writing, that the payment collected from him is an over• payment, the local authority shall refund it with the addition of differentials in accordance with the rate of in• crease of the index as aforesaid and linked interest at the rate of 0.5 per cent per month from the date of payment of the overpayment until the date of the refund.".

5. The following section shall be inserted after section 7 of the principal Addition of

LaW• section 7A.

"Rounding 7A. Every compulsory payment or overpayment to off of sums. which differentials are added in accordance with the rate of increase of the index as provided in this Law shall be rounded off to the nearest ten shekalim. An amount of five shekalim shall be rounded off downwards.".

6. In the First Schedule to the Interest (Variation of Rates) Law, 5733- Amendment of

1 1972 paragraph (13) shall be replaced by the following paragraph: oTRates/Law"'0" "(13) section 4(b) of the Local Authorities (Interest and Linkage Differ• entials on Compulsory Payments) Law, 5740-1980".

1) Sefer Ha-Chukkim of 5733, p. 12; LSI vol. XXVII, p. 12.

269 Commencement 7. (a) Section 2 shall come into force on the 3rd Av, 5744 (1st August, and transitional 1QS41 provisions. (b) The Minister of the Interior may, by order, in respect of a particular local authority or class of local authorities, prescribe a period of two months instead of the period of thirty days prescribed in section 2 of the principal Law. Such an order shall apply until the end of the financial year 1985 or until an earlier date prescribed by the Minister.

YITZCHAK SHAMIR YOSEFBURG Prime Minister Minister of the Interior CHAIM HERZOG President of the Stale

270 (No. 81)

COURTS LAW (CONSOLIDATED VERSION), 5744-1984'

Contents

Chapter One: The Judges

Article One: Scope of Application

1. This chapter deals with the Judges of Subject-matter of chapter. (1) the Supreme Court; (2) the District Courts; (3) the Magistrates' Courts.

Text determined by the Constitution, Legislation and Juridical Committee of the Knesset on the 15th Av, 5744 (13th August), 1984) under section 16 of the Law and Administration Ordinance, 5708-1948, and published in Sefer Ha-Chukkim No. 1123 of the 3rd Elul, 5744 (31st August, 1984), p. 198. This version replaces 1) the Judges Law, 5713-1953: Sefer Ha-Chukkim of 5713, p. 149; LSI vol. VU, p. 124; Sefer Ha-Chukkim of 5719. p. 134; LS[ vol. XTH, p. 144; Sefer Ha-Chukkim of 5724, p. 140; LSI vol. XVIII, p. 136; Sefer Ha-Chukkim of 5729, p. 98; LSI vol. XXHI, p. 108; Sefer Ha-Chukkim of 5738, p. 22; LSI vol. XXXII, p. 23; Sefer Ha-Chukkim of 5740, p. 186; LSI vol. XXXIV, p. 210; Sefer Ha-Chukkim of 5741, p. 272; LSI vol. XXXV, p. 329; Sefer Ha-Chukkim of 5742 p. 196; LSI vol. XXXVI, p. 207; Sefer Ha-Chukkim of 5744 pp. 82 and 150; supra, pp. 107 and 200; 2) the Courts Law. 5717-1957: Sefer Ha-Chukkim of of 5717, p. 148; LSI vol. XI, p. 157; Sefer Ha-Chukkim of 5722, p. 24; LSI vol. XVI, p. 17; Sefer Ha- Chukkim of 5724, p. 66; LSI vol. XVUI, p. 56; Sefer Ha-Chukkim of 5727, p. 132; LSI vol. XXI, p. 131; Sefer Ha-Chukkim of 5731. p. 120; LSI vol. XXV, p. 118; Sefer Ha-Chukkim of 5733, p. 237; LSI vol. XXVn, p. 267; Sefer Ha-Chukkim of 5735, p. 106; LSI vol. XXIX, p. 137; Sefer Ha-Chukkim of 5738, pp. 11 and 93; LSI vol. XXXn, pp. 14 and 119; Sefer Hä-Chukkim of 5739, p. 138; LSI vol. XXXm, p. 172; Sefer Ha-Chukkim of 5740, p. 125; LSI vol. XXXIV, p. 143; Sefer Ha-Chukkim of 5741, pp. 84 and 273; LSI vol. XXXV, pp. 83 and 330; Sefer Ha- Chukkim of 5742, p. 192; LSI vol. XXXVI, p. 202; Sefer Ha-Chukkim of 5743, pp. 130 and 149; LSI vol. XXXVJJ, pp. 150 and 177; Sefer Ha-Chukkim of 5744 pp. 82, 145 and 150; supra pp. 107, 196 and 200; Koveiz Ha-Takkanot of 5743, pp. 1523 and 1730; 3) the Small Claims (Jurisdiction) Law, 5736-1976: Sefer Ha- Chukkim of 5736, p. 247; LSI vol. XXX, p. 240; Sefer Ha-Chukkim of 5737, p. 143; LSI vol. XXXI, p. 170; Sefer Ha-Chukkim of 5743. p. 36; LSI vol. XXXVII, p. 37; Kovelz Ha-Takkanot of 5744, p. 738; 4) Registrars Ordinance (New Version), 5731-1971: Dinei Medina! Yisrael (Nusach Chadash) No. 19, p. 436; NV vol. H, p. 216; Sefer Ha-Chukkim of 5735, p. 16; LSI vol. XXIX, p. 22; Sefer Ha-Chukkim of 5736, p. 203; LSI vol. XXX, p. 200; Sefer Ha-Chukkim of 5744, p. 155; supra, p. 209.

271 Article Two: Qualifications

Qualifications 2. The following are qualified to be appointed as Judges of the Supreme of Judges of Court: Supreme Court. (1) a person who has held office as a Judge of a District Court for a period of five years; (2) a person who is inscribed, or entitled to be inscribed, on the Roll of Members of the Chamber of Advocates and who, continuously or in• termittently, for not less than ten years - including at least five years in this country - has been engaged in one or several of the following: (a) the profession of an advocate; (b) a judicial or other legal function, in the service of the State of Israel or another service, designated for this purpose by regulations; (c) the teaching of law at a university or law high school desig• nated for this purpose by regulations: (3) an eminent jurist.

Qualifications 3. The following are qualified to be appointed as Judges of a District of Judges of Court: District Court. (1) a person who has held office as a Judge of a Magistrates' Court for a period of four years; (2) a person who is inscribed, or entitled to be inscribed, on the Roll of Members of the Chamber of Advocates and who, continuously or in• termittently, for not less than six years - including at least three years in this country - has been engaged in one or several of the occupations enumerated in section 2(2).

Qualifications 4. The following are qualified to be appointed as Judges of a Magistrates' of Judges of Magistrates' Court: a person who is inscribed, or entitled to be inscribed, on the Roll of Court. Members of the Chamber of Advocates and who, continuously or intermit• tently, for not less than three years - including at least one year in this coun• try - has been engaged in one or several of the occupations enumerated in section 2(2).

Nationality. 5. (a) A person who is not an Israeli national shall not be appointed as a Judge.

272 (b) Where a candidate for appointment holds also a nationality other than Israeli nationality and the law of the other state of which he is a na• tional enables him to be released from its nationality, he shall not be ap• pointed until he has done everything required of him in order to be so re• leased.

Article Three: Appointment

6. The following provisions shall apply for the purposes of the Judges' Judges' Selection Selection Committee under section 4 of the Basic Law: Judicature1 (herein• Committee. after referred to as "the Committee"): (1) the Knesset shall elect, by secret ballot, the two members of the Knesset who are to serve as members of the Committee; they shall serve so long as they are members of the Knesset and, when the period of tenure of the Knesset has ceased, until the new Knesset has elected other members in their stead; (2) the National Council of the Chamber of Advocates shall elect its representatives by secret ballot; they shall serve for a period of three years; (3) the two Judges of the Supreme Court shall serve for a period of three years; (4) the composition of the Committee shall be published in Reshu- mot.

7. (a) When it appears to the Minister of Justice that a Judge should be Procedure of appointed, he shall give notice to such effect in Reshumot and shall convene Committee. the Committee. (b) The following are authorised to propose candidates: (1) the Minister of Justice; (2), the President of the Supreme Court; (3) three members of the Committee jointly. (c) A proposal by the Committee for the appointment of a Judge shall be passed by a majority of the members taking part in the voting: Provided

1) Sefer Ha-Ckukkim of 5744, p. 78; supra, p. 101.

273 that a proposal by the Committee for the appointment of an eminent jurist shall be passed by a three-quarters majority of the members taking part in the voting. (d) The Committee shall prescribe any other procedure for its delibera• tions and work.

President and 8. The President and the Deputy President of the Supreme Court shall be Deputy President appointed, in accordance with the provisions of section 4(a) of the Basic of Supreme Court Law: Judicature, from among the Judges of the Supreme Court.

Presidents and 9. The Presidents and Vice-Presidents of District Courts and Magistrates' Vice-Presidents Courts shall be appointed by the Minister of Justice in consultation with the of other courts. President of the Supreme Court, each from among the Judges of the courts of the grade in question.

Acting 10. (a) The Minister of Justice may, with the consent of the candidate and appointment. in consultation with the President of the Supreme Court, appoint - (1) a Judge of the Supreme Court to act as President or Judge of a District Court. (2) a Judge of a District Court to act as a Judge of the Supreme Court, President of a District Court, President of a Magistrates' Court or Judge of a Magistrates' Court; (3) a Judge of a Magistrates' Court to act as a Judge of a District Court or President of a Magistrates' Court; (4) a Traffic Judge holding a permanent appointment to act as a Judge of a Magistrates' Court. (b) Acting service under this section, whether continuous or intermit• tent, shall not be for more than one year out of a period of three years; but in the case of a Judge being a registrar, who is appointed to act as a Judge of the court at which he serves as registrar, it may, with the consent of the Presi• dent of the Supreme Court, be for up to four years out of a period of five years.

Article Four: Tenure

Validity of 11. After the appointment of a Judge has been published in Reshumot, it appointment. shall not be disputed.

274 12. A Judge may resign his office by submitting a letter of resignation to Resignation, the Minister of Justice; his tenure shall end upon the expiration of three months from the submission of the letter of resignation unless the Minister of Justice has agreed to a shorter period.

13. (a) A Judge shall retire on pension - Retirement on pension. (1) upon attaining the age of seventy years; (2) if the Committee, on the basis of a medical opinion in con• formity with rules prescribed by it, finds that by reason of his state of health he is unable to continue in the exercise of his functions. (b) A Judge may retire on pension - (1) if he has attained the age of sixty years, after holding office for twenty years; (2) if he has attained the age of sixty-five years, after holding of• fice for fifteen years; (3) if he so requests and his request is approved by the Commit• tee; the Committee may make its consent conditional upon the fixing of a lower rate of pension than is required according to law. (c) Notwithstanding the provisions of subsection (b), a Judge of a Magistrates' Court may retire on pension after holding office for twenty years if he has attained the age of fifty years or after holding office for fifteen years if he has attained the age of fifty-five years, provided that he gives no• tice to the Minister of Justice one year before the date of retirement. (d) In computing the term of office of a Judge for the purposes of sub• sections (b) and (c), there shall be added to his term of office as a Judge any period of service in the State service or in any institution approved for this purpose by the Finance Committee of the Knesset, or any part of any such period, all according to rules prescribed by the Finance Committee.

14. If the Committee decides upon the termination of the tenure of a Judge Termination of under section 7(4) of the Basic Law: Judicature, it shall in its decision pre• tenure by decision. scribe the date for the termination of the tenure and, at its discretion, the rate of the pension which he is to receive.

15. (a) A Judge who, having commenced any proceedings, retires on pen• Power of Judge to sion or quits, shall be competent to complete such proceedings within three complete proceedings. months from the date of retirement or quitting.

275 (b) If, where a Judge has commenced any proceedings, the period of his appointment to his present position ends because he is appointed to another court or because an acting appointment ends, he shall be competent to com• plete such proceedings.

(c) In this section and in section 16, "a Judge who has retired on pen• sion" includes a Traffic Judge who, after holding a permanent appointment, has retired on pension.

Appointment of 16. A person empowered by any enactment to appoint a Judge, or a person former Judge. qualified to be a Judge, as chairman of a committee or any other body may, in consultation with the President of the Supreme Court and with the con• sent of the candidate, appoint as aforesaid, for such period as he may fix, a person who, having been a Judge as specified in that enactment, has retired on pension or quitted, and he may so appoint, with the consent of the candi• date, a person who has been a Judge of a higher court than that specified in that enactment.

Article Five: Disciplinary Jurisdiction

Composition of 17. (a) The Court of Discipline for Judges (hereinafter referred to as "the Court of Court of Discipline" shall consist of five members, including three Judges of Discipline. the Supreme Court, or of three members, including two Judges of the Supreme Court, as the President of the Supreme Court may prescribe in re• spect of each case. (b) The members of the Court of Discipline shall, in respect of each case, be appointed by the President of the Supreme Court in accordance with a resolution of the body of Judges thereof. (c) The President of the Court shall be the President or Deputy Presi• dent of the Supreme Court or the most senior of the other Judges of the Supreme Court (and in the case of several with equal length of service, the oldest), according to the composition of the Court of Discipline. (d) For the purposes of this section, "Judge" includes a Judge who has retired on pension.

Complaint 18. (a) The Minister of Justice may submit a complaint against a Judge to

against Judge. ^ court 0f Discipline on one of the following grounds: (1) that the Judge has acted improperly in carrying out his functions;

276 (2) that the Judge has acted in a manner unbecoming his status as a Judge in Israel; (3) that the Judge has been convicted of an offence which in the cir• cumstances of the case involves moral turpitude; (4) that the Committee has found that the Judge has obtained his ap• pointment unlawfully. (b) The Minister of Justice may be represented before the Court of Discipline by a person empowered by him. (c) In hearing the complaint, the Court of Discipline shall have all the powers which a District Court has in a criminal case.

19. The Court of Discipline may impose the following disciplinary mea• Disciplinary sures: measures. (1) an admonition; (2) a warning; (3) a reprimand; (4) transfer to another place of service; (5) removal from office, either with full or part pension or without pension.

20. The Court of Discipline shall communicate its decisions, whether Communication favourable or unfavourable, to the Minister of Justice. of decisions to Minister of Justice. 21. The Minister of Justice may make regulations as to the procedure of the Procedure. Court of Discipline.

Article Six: Miscellaneous Provisions

22. Notice of the appointment and cessation of tenure of a Judge shall be Publication published in Reshumot. in Reshumot.

23. The provisions of section 12 of the Basic Law: Judicature shall not ap• Criminal ply to an offence designated as a finable offence by any enactment. jurisdiction.

24. Where a Judge is a party to a civil proceeding, the President of the Judge being Supreme Court shall determine the court which is to hear the case. party to civil proceeding.

277 Chapter Two: The Courts

Article One: The Supreme Court

Number of Judges. 25. The Supreme Court shall consist of such number of Judges as the Knesset shall fix by resolution.

Composition. 26. The Supreme Court shall hear any matter by a bench of three: Provided that- (1) the President or Deputy President of the Supreme Court may, be• fore the beginning of the proceedings in a particular matter, direct that such proceedings shall be before a greater uneven number of Judges; (2) a bench which has begun to hear a particular matter may direct that the continuation of the proceedings therein shall be before a greater un• even number of Judges, including the Judges before whom the proceed• ings were begun;

(3) a single Judge shall be competent to hear applications for interim orders, provisional orders and other interim decisions and applications for an order nisi, but a single Judge shall not be competent to refuse the grant of an order nisi or to grant it on part of the grounds thereof only; (4) a single Judge shall be competent to hear appeals against interim decisions of District Courts.

Determination of 27. (a) The President of the Supreme Court shall designate the Judge or benches and times. Judges who is or are to hear a particular matter. (b) The President of the Supreme Court shall prescribe the time at which the Supreme Court is to begin the hearing of a particular matter.

The Presiding 28. (a) In a case in which the President of the Supreme Court sits, he shall Judge. be the presiding Judge; in a case in which the Deputy President sits and the President does not sit, the Deputy President shall be the Presiding Judge; in any other case, the Judge with the greatest length of service or, where the length of service is the same, the oldest Judge shall be the Presiding Judge. (b) For the purposes of this section, length of service shall be reckoned from the date of the appointment of the Judge to the Supreme Court.

Acting President 29. (a) When the place of the President of the Supreme Court has fallen of Supreme Court. vacant and so long as the new President has not begun to hold office, or if the President is absent from Israel or is temporarily unable to carry dut his

278 functions, the Deputy President shall carry out the functions and exercise the powers assigned to the President by any enactment. (b) If the President and the Deputy President of the Supreme Court are unable to carry out their functions, the Judge with the greatest length of ser• vice or, where the length of service is the same, the oldest Judge shall be the Acting President. \ (c) The President of the Supreme Court may delegate any of his pow• ers to the Deputy President.

30. (a) Where the Supreme Court has determined any matter by a bench of Further hearing, three Judges, it may, upon giving judgment, decide that the Supreme Court shall hear the matter further by a bench of five or more Judges. (b) Where the Supreme Court does not decide as specified in subsection (a), each party may request a further hearing as aforesaid; and the President of the Supreme Court, or any other Judge or Judges designated by him for that purpose, may accede to the request if the rule laid down in the matter by the Supreme Court conflicts with a rule previously laid down by it or if, in view of the importance, difficulty or novelty of a rule laid down in the matter, there is, in his or their opinion, room for a further hearing. (c) In a decision given under subsection (a) or (b), the Court or Judge may designate the issue to be dealt with at the further hearing and, upon its or his doing so, the further hearing shall be concerned with that issue only.

31. (a) The President or Deputy President of the Supreme Court may direct Retrial, that the Supreme Court or a District Court designated by him for that pur• pose shall hold a retrial in a criminal matter which has been finally deter• mined if it appears to him - (1) that a court has decided that any of the evidence produced in the matter was based on a falsehood or forgery and that there is reason to believe that the absence of such evidence might have altered the outcome of the case in favour of the sentenced person; or (2) that new facts or new evidence have or has come to light which are or is likely, by themselves or together with the material which was originally before the court, to alter the outcome of the case in favour of the sentenced person and which could not have been in the possession of, or known to, the sentenced person at the time of his trial; or (3) that another person has meanwhile been convicted of the criminal act in question and that the circumstances which came to light at the

279 trial of such other person indicate that the person originally convicted of the offence did not commit it. (b) The sentenced person and the Attorney-General have the right to request a retrial. Where the sentenced person has died, such right shall vest also in his spouse and in every one of his descendants, parents, brothers and sisters. (c) At the retrial, the Supreme Court or District Court shall have all the powers vested in a District Court in a criminal case and vested in the Supreme Court in a criminal appeal, except the power to increase the penalty. The court may make any order it thinks fit to indemnify a sentenced person who has undergone his penalty or part thereof and whose conviction has been quashed as a result of the retrial, or may grant him any other relief; where the accused has died, the court may make an order as aforesaid in favour of another person.

Reference of 32. (a) Where a petition for a pardon or for the reduction of a penalty has question by been submitted to the President of the State, and a question arises which in Minister of Justice. the opinion of the Minister of Justice should be dealt with by the Supreme Court, but which does not provide a ground for a retrial under section 21, the Minister of Justice may refer such question to the Supreme Court.

(b) The Supreme Court shall decide whether to deal with a question re• ferred to it under subsection (a); if it decides in the affirmative, it shall deal with the question as if the President of the Supreme Court had directed a re• trial under section 31.

Article Two: District Courts

Place of sitting 33. The Minister of Justice may, by order, establish District Courts and and area of prescribe the places of sitting and areas of jurisdiction jiereof. jurisdiction.

Hearings at 34. (a) A District Court shall sit at its place of sitting. place of sitting or elsewhere. (b) A District Court may hear the whole or part of a particular matter in a place other than its place of sitting if it sees fit so to do in the interests of justice or the efficiency of the proceedings, provided that it shall not sit in a place outside its area of jurisdiction save with the consent of the President of the District Court in whose area of jurisdiction the oiher place is situated.

The Judges. 35. (a) A District Court shall consist of such number of Judges as the Minister of Justice shall fix by notice in Reshumot.

280 (b) A District Court shall have a President and may have one or more Vice-Presidents; however, one President may serve as President of two Dis• trict Courts.

36. Where a particular Judge has been appointed to one District Court, such Judge sitting fact shall not prevent him from sitting in another District Court; however, outside the place for which he has he shall not sit in another District Court save with the consent of the Presi• been appointed. dents of the two District Courts concerned.

37. (a) A District Court shall hear the following matters by a bench of Composition. three: (1) trials of offences punishable by death or by imprisonment for ten years or more; (2) appeals, not including applications for interim orders, provisional orders and other interim decisions in appeals, against judgments of courts in which a Judge of a Magistrates' Court is sitting; (3) any matter which the President or Vice-President of the District Court directs shall be heard by a bench of three. (b) Notwithstanding the provisions of subsection (a), a single Judge of a District Court shall, unless the President or a Vice-President of the Court otherwise directs in respect of a particular matter, be competent in respect of the following: (1) the offences enumerated in the First Schedule; (2) appeals against decisions of the Chief Execution Officer under sec• tion 19,25,48 or 58 of the Execution Law, 5727-19671. (c) Any matter not mentioned in subsection (a) or (b) shall be heard by a District Court by a single Judge.

38. (a) The Judge or Judges who is or are to hear a particular matter shall Determination of be designated by the President or a Vice-President of the District Court or, in benches and times. the absence of a designation as aforesaid, in accordance with the order pre• scribed by the President of the Court from time to time. (b) The time at which the District Court is to begin the hearing of a particular matter shall be prescribed by the Judge or Judges who is or are to hear it, in accordance with rules prescribed by the President of the Court, or,

1) Sefer Ha-Chukkim of 5727, p. 116; LSI vol. XXI, p. 112.

281 if the bench which is to hear it has not yet been determined, shall be pre scribed by the President or a Vice-President of the Court.

The Presiding 39. (a) Where a District Court hears any matter by a bench of three including the President of the Court, the President shall be the Presiding ־Jud8e Judge; where a Vice-President but not the President is included, the Vice- President shall be the Presiding Judge; where two Vice-Presidents are in eluded, the one with the greater length of service shall be the Presiding Judge; in any other case, the Judge with the greatest length of service or, where the length of service is the same, the oldest Judge shall be the Presid ing Judge. (b) For the purposes of this section, length of service shall be reckoned from the date of the appointment of the Judge to a District Court.

Jurisdiction. 40. A District Court shall hear - (1) any civil or criminal matter not within the jurisdiction of a Magis trates' Court; a civil counterclaim may be heard by a District Court even if the matter or claim is within the jurisdiction of a Magistrates' Court; (2) any matter not within the exclusive jurisdiction of another court; where another court has concurrent jurisdiction in any matter, the Dis trict Court shall be competent to hear it so long as it is not being heard by the other court; (3) appeals against judgments and other decisions of the Magistrates' Courts.

Appeal. 41. (a) A judgment of a District Court as a court of first instance shall be appealable to the Supreme Court. (b) Any other decision of the District Court in a civil matter, and a judgment of a District Court in an appeal, shall be appealable to the Supreme Court if leave so to appeal has been granted by the President of the Supreme Court or by another Judge thereof designated by the President or has been granted by the Supreme Court, and also, in the case of a judgment, if leave to appeal has been granted in the judgment itself.

Power of Judges. 42. Any judicial power reserved by law to the President or a Vice-President of a District Court shall vest in every Judge of that Court. The President of a District Court may delegate the whole or part of any other power reserved to him to a Vice-President.

282 Article Three: Magistrates' Courts

43. The Minister of Justice may, by order, establish Magistrates' Courts and Place of sitting prescribe their places of sitting and areas of jurisdiction. and area of jurisdiction.

44. (a) A Magistrates' Court shall sit at its place of sitting. Sessions at place of sitting or (b) A Magistrates' Court may hear the whole or part of a particular elsewhere. matter in a place other than its place of sitting if it sees fit so to do in the interests of justice or the efficiency of the proceedings, provided that it shall not sit in a place outside its area of jurisdiction save with the consent of the President of the District Court in whose area of jurisdiction the other place is situated.

45. (a) A Magistrates'Court shall consist of such number of Judges as the The Judges. Minister of Justice shall fix by notice in Reshumot. (b) In every area of jurisdiction, there shall be one President, and may be one or more Vice-Presidents, of a Magistrates' Court; however, one President may serve as President in several areas of jurisdiction.

46. Where a particular Judge has been appointed to one Magistrates' Court, Judge sitting such fact shall not prevent him from sitting in another Magistrates' Court; outside the place for which he has however, he shall not sit in another Magistrates' Court save with the consent been appointed. of the Presidents of the two Magistrates' Courts concerned.

47. A Magistrates' Court shall hear any matter by a single Judge; however, Composition. the Judge sitting in the case or the President of the Magistrates' Court may direct that a particular matter be heard by three Judges; the President of the Magistrates' Court shall designate the Judges of whom the Court shall con• sist.

48. (a) The Judge who is to hear a particular matter shall be designated by Determination of the President or a Vice-President of the Magistrates' Court or, in the absence benches and times. of such a designation, in accordance with the order prescribed by the President of the Magistrates' Court from time to time. (b) The time at which a Magistrates' Court is to begin the hearing of a particular matter shall be prescribed by the Judge or Judges who is or are to hear it, in accordance with the rules prescribed by the President of the Court or, if the bench which is to hear it has not yet been determined, shall be pre• scribed by the President or a Vice-President.

283 Referral of matter 49. (a) The President of a Magistrates' Court may direct that any matter from one Magis• which is to be brought before such Court or which has been so brought but trates' Court to another. has not yet begun to be heard, shall be heard in another court situated in an area of jurisdiction in which he serves as President. (b) A decision under subsection (a) shall be appealable to the President of the District Court. (c) A court to which a matter has been referred as aforesaid shall not refer it further.

The Presiding 50. (a) Where a Magistrates' Court hears any matter by a bench of three Judge. including the President of the Magistrates' Court, the President shall be the Presiding Judge; where a Vice-President and not the President is included, the Vice-President shall be the Presiding Judge; where two Vice-Presidents are included, the one with the greater length of service shall be the Presiding Judge; in any other case, the Judge with the greatest length of service or, where the length of service is the same, the oldest Judge shall be the Presid• ing Judge.

(b) For the purposes of this section, length of service shall be reck• oned from the date of the appointment of the Judge to a Magistrates' Court.

Jurisdiction. 51. (a) A Magistrates' Court shall hear - (1) matters of contraventions and misdemeanours; however, a person may, if the District Attorney so decides, be tried in a Magistrates' Court for any of the offences enumerated in the Second Schedule the circum• stances of which do not entail a double penalty, provided that impris• onment for more than five years shall not be imposed;

(2) civil claims - other than claims relating to immovable property - where the amount of the claim or the value of the subject-matter does not exceed 2,000,000 shekalim; (3) claims concerning the possession, use or partition; or the partition of the use, of immovable property, including claims connected with claims as aforesaid and relating to the possession or use of movable property, whatever the value of the subject-matter of the claim; but a Magistrates' Court shall not hear claims concerning a long-term tenancy or other claims relating to immovable property;

(4) a counterclaim to a civil claim where the subject-matter of the claim and the counterclaim or the circumstances from which the claim

284 and the counterclaim arise, is or are the same, whatever the value of the subject-matter of the counterclaim. (b) The Minister of Justice may, in consultation with the President of the Supreme Court and with the approval of the Constitution, Legislation and Juridical Committee of the Knesset, by order, increase the amount speci• fied in subsection (a)(2); an order as aforesaid may prescribe, for courts generally or for a particular court, that a matter which a widening of jurisdic• tion as aforesaid adds to the sphere of the Magistrates' Court and which was filed in a District Court before the coming into force of the order shall be heard in a Magistrates' Court, provided that the hearing of witnesses therein has not yet begun.

52. (a) A judgment of a Magistrates' Court shall be appealable to a Dis- Appeal, trict Court. (b) Any other decision of a Magistrates' Court in a civil matter shall be appealable to a District Court if leave so to appeal has been given by a Judge of the District Court.

53. Any judicial power reserved by law to the President of a Magistrates' Powers of Judge. Court shall vest in every Judge of that court. The President of a Magistrates' Court may delegate the whole or part of any other power reserved to him to a Vice-President.

Article Four: Courts for Local Matters

54. (a) The Minister of Justice may, by order, after consultation with the Place of sitting local authority concerned, establish a Court for Local Matters and prescribe f"d "?* •of J r jurisdiction. its place of sitting and area of jurisdiction, and he may, by order as aforesaid, empower a Magistrates' Court to sit as a Court for Local Matters. (b) The area of jurisdiction of a Court for Local Matters may be differ• ent from the area of jurisdiction of the Magistrates' Court of the region and may include the area of several local authorities. Where the area of jurisdic• tion of a Court for Local Matters includes areas belonging to the areas of ju• risdiction of several Magistrates' Courts, the order shall prescribe the Presi• dent of which of them shall be competent for it. (c) The Minister of Justice may, after consultation with the local au• thority concerned, revoke or vary an order under this section.

285 Jurisdiction. 55. (a) A Court for Local Matters shall try offences under the Municipali• ties Ordinance1, the Local Councils Ordinance2, the Planning and Building Law, 5725-19653, and any regulations, orders and byelaws thereunder and of• fences under the-enactments enumerated in the Third Schedule, including any regulations, orders and byelaws thereunder. (b) The Minister of Justice may, with the approval of the Constitu• tion, Legislation and Juridical Committee of the Knesset, by order, vary the Third Schedule. (c) Every enactment vesting any power in a Municipal Court shall be read as if such power were vested in a Court for Local Matters.

Status of Court for 56. (a) A Court for Local Matters shall be treated like a Magistrates' Court and, save as otherwise provided in this article, the provisions of Article Three, except section 51, shall apply to it mutatis mutandis. (b) A Judge of a Court for Local Matters shall, to all intents and pur• poses, have the status of a Judge of a Magistrates' Court.

Appointment 57. (a) The Minister of Justice may, with the consent of the President of of Judge. the Supreme Court, for such period and on such conditions as he may pre• scribe, appoint a Judge or a Judge retired on pension to carry out the func• tions of a Judge of a Court for Local Matters; a Judge so appointed shall, whenever sitting, have the powers of a Judge of a Magistrates' Court. (b) A Judge retired-on-pension appointed as aforesaid shall, so long as he holds office, perform no act reserved to an advocate under the Chamber of Advocates Ordinance, 5721-19614. (c) The provisions of this section shall not derogate from the power of a Judge of a Magistrates' Court to try offences specified in section 55 or to act as a Judge of a Court for Local Matters. (d) In this section, "Judge retired on pension" includes a Traffic Judge who, having held a permanent appointment, has retired on pension.

Saving of powers. 58. The provisions of this article shall not derogate from the powers of a Magistrates' Court to try offences specified in section 55.

1) Dinei Medina! Yisrael (Nusach Chadash) No. 8, p. 197; NV vol. I, p. 247. 2) Dinei Medina! Yisrael (Nusach Chadash) No. 9, p. 256; NV vol. I, p. 315. 3) Sefer Ha-Chukkim of 5725, p. 307; LSI vol. XIX, p. 330. 4) Sefer Ha-Chukkim of 5721, p. 178; LSI vol. XV, p. 196.

286 Article Five: Small Claims Courts

59. The Minister of Justice may empower a particular Magistrates' Court to Empowerment sit as a Small Claims Court. of Courts.

60. (a) A Small Claims Court shall hear a civil claim filed by an individ- jurisdiction, ual - (1) for the payment of an amount not exceeding 100,000 shekalim; (2) for an order for the repair or exchange of a commodity or the void- ance of a transaction where the value of the commodity or repair or the amount of the transaction, as the case may be, does not exceed the amount stated in paragraph (1), and a counterclaim for an amount or order as aforesaid, provided that the claims are not based on a right which has been transferred or assigned and are not under the sole jurisdiction of another court. (b) The Court may refrain from hearing a claim or counterclaim and refer it to a Magistrates' Court if it considers that a hearing by a Small Claims Court is not appropriate to the same or that the claim has been filed by a claimant who has filed more than five claims with it in the current year. (c) The Minister of Justice may, with the approval of the Constitu• tion, Legislation and Juridical Committee of the Knesset, vary the amount stated in subsection (a).

61. The provisions of section 60 shall not prevent - Saving of right. (1) a party from filing a claim as mentioned therein in a court other than a Small Claims Court; (2) a defendant who has filed a counterclaim in a Small Claims Court from filing a separate claim for the balance of his claim either in a Small Claims Court or in another court.

62. (a) A Small Claims Court may admit evidence even if it would not be Evidence and admissible in another court. This provision shall not derogate from the law procedure. as to the immunity of witnesses and privileged evidence. (b) AS mall Claims Court shall not be bound by the rules of procedure obtaining in another court and, subject to rules of procedure made by the

287 Minister of Justice for the purposes of this article, shall act in such manner as seems to it most expedient for a just and speedy determination of the case.

Representation. 63. A party shall not be represented before a Small Claims Court by an ad• vocate save by leave of the court and for reasons which shall be recorded; a party may, by leave of the court, be represented by an organisation designated for this purpose by the Minister of Justice, and where a party is so repre• sented, the court shall permit the opposing party to be represented as it may direct.

Appeal. 64. A judgment of a Small Claims Court shall be appealable to a District Court by leave of a Judge of the District Court. The District Court shall hear the appeal by a single Judge.

Arbitration. 65. (a) Where a claim is filed in a Small Claims Court, a Judge of the court may, with the consent of the parties, hear the claim as an arbitrator or refer it to another arbitrator who has consented to hear it without receiving a remuneration from the parties.

(b) The provisions of the Arbitration Law, 5728-19681, except sec• tions 23 to 29 and 31 to 35, shall, as far as relevant, apply to arbitration un• der this section: Provided that - (1) every reference therein to the court shall be deemed to be a reference to a Judge of a Small Claims Court; (2) an arbitral award under this section shall, except as regards appeal, be treated as a judgment of a Small Claims Court. (c) This section shall not derogate from an arbitration agreement be• tween the parties.

Appointment of 66. The Minister of Justice may, with the consent of the President of the Judges retired on Supreme Court, appoint, for such period and on such conditions as he may pension. prescribe, appoint a Judge retired on pension to carry out the functions of a Judge of a Small Claims Court. A Judge so appointed shall, whenever sit• ting, have the powers of a Judge of a Magistrates' Court.

Place of 67. The Minister of Justice may, by regulations, prescribe a place of juris- jurisdiction. diction for small claims, which shall be the place of jurisdiction notwith• standing anything provided in any agreement between the parties.

1) Sefer Ha-Chukkim of 5728, p. 184; LSI vol. XXII, p. 210.

288 Article Six: Publicity of Trial

68. (a) A COUrt Shall Sit in public. Publicity of trial. (b) A court may hear the whole or part of a particular matter in camera if it deems it necessary so to do - (1) for the purpose of safeguarding state security or (2) for the purpose of preventing an impairment of the foreign rela tions of the State or (3) for the purpose of protecting morality or (4) for the purpose of protecting the interests of a minor or (5) for the purpose of protecting the interests of a person who com plains of or is charged with a sexual offence or (6) where the hearing concerns matrimonial matters or (7) where a public hearing might deter a witness from testifying freely or from testifying at all. (c) Applications for interim orders, provisional orders and other in terim decisions may be heard by a court in camera. (d) Where a court decides to hold a hearing in camera, it may permit a person or particular classes of persons to be present at the whole or any part of the hearing.

69. (a) A court may prohibit a minor from being in court at the time of Removal ׳the hearing and may order his removal. from cou!t (b) A Court may remove a person, not being a party, from the court room at the time of any hearing if, for reasons which shall be recorded, it considers that his presence will deter a witness from testifying or from testi fying at all. Prohibition of 70. (a) A person shall not publish anything concerning a hearing which publication, has been held in camera in any court, save with the permission of such court. (b) A person shall not take photographs in a courtroom, or publish a photograph so taken, save with the permission of the court. (c) A person shall not without the permission of the court, publish the name, picture or address, or any other particulars likely to lead to the

289 identification, of a minor under sixteen years of age who is an accused or witness in a criminal trial or a complainant or injured party in a trial for an offence under sections 345 to 358, 360 and 208 to 214 of the Penal Law, 5727-19571. (d) A court may prohibit any publication in connection with its hear• ings in so far as it deems it necessary so to do in order to protect the safety of a party or witness or of any other person whose name has been mentioned during the hearings. (e) A court may prohibit the publication of the name, or any other particular enabling the identification, of a suspect against whom an informa• tion has not yet been filed if such publication might prejudice a lawful investigation. (f) A person who contravenes any of the provisions of this Law is li• able to imprisonment for a term of six months.

Special 71. (a) A person shall not publish anything concerning a matter pending in any court if the publication is calculated to influence the course or out• come of the trial. (b) A criminal matter shall be regarded as pending in a court from the time when an application for a warrant of arrest, or an information, is filed with the court in the matter, whichever is the earlier, until the prosecutor de• cides not to file an information or, where an information is filed, until the termination of the proceedings. (c) The prohibition of publication shall not apply to the bona fide publication of a report of anything that has been said, or has occurred, in an open session of the court. (d) A person who contravenes the provisions of this section is liable to imprisonment for a term of one year.

Prohibition of 72. (a) Where during court proceedings, any person in the courtroom, in disturbance. the chambers of a Judge or close to the place of the proceedings - (1) behaves in a violent, threatening, disorderly or disgraceful manner; or (2) makes a noise to express agreement or disagreement with a legal act or with a decision of the court; or

1) Sefer Ha-Chukkim of 5737, p. 226; LSI Special Volume: Penal Law, 5737-1967.

290 (3) threatens a court official or otherwise interferes with him in the discharge of his duties; or (4) otherwise disturbs the proceedings of the court, the court may order his removal, and it may, when it has warned him to de• sist from the disturbance and he disregards the warning, punish him there and then with a fine or with imprisonment up to three months. (b) The court shall forthwith notify the President of the Supreme Court, in writing, of any penalty imposed under subsection (a). The Presi• dent or a Judge of the Supreme Court designated by him may, after summoning the sentenced person if he so requests, quash or mitigate the penalty.

(c) This section shall not apply to a person amenable, in the matter in question, to disciplinary justice under the Chamber of Advocates Law, 5721- 1961, who is in the courtroom in the discharge of his functions.

73. (a) Where a person, having been summoned to testify, does not appear Penalty for or, having been ordered to produce a document, does not produce it, the court disobedience. or registrar may impose on him, even in his absence, half the fine mentioned in section 40(2) of the Penal Law, 5737-1977 (hereinafter referred to as "the Penal Law"); and if, having been summoned or ordered again he still does not appear or produce the document, the court or registrar may impose on him, as aforesaid, imprisonment for a term not exceeding one month or a fine as mentioned in section 40(2) of the Penal Law. (b) Where imprisonment or a fine under subsection (a) has been im• posed on a person in his absence, the court or registrar, as the case may be, may, on his application, reconsider the penalty and quash or mitigate it; and he shall quash it if it or he is satisfied that the applicant did not appear or not produce the document for reasons beyond his control. (c) The court or registrar shall forthwith notify the president of the ap• pellate court, in writing, of any decision to impose imprisonment or a fine under subsection (a) and of any decision under subsection (b), and the presi• dent or some other Judge of the appellate court may quash or mitigate the order.

74. Without prejudice to the provisions of section 72(b), decisions of a Finality of court under sections 68,69 and 72 shall be final. decisions.

291 Article Seven: General Provisions

General powers. 75. Every court dealing with a civil matter is competent to grant a declara• tory judgment, a mandatory or prohibitive order, an order of specific perfor• mance and any other relief, as it may think fit in the circumstances of the case.

Incidental 76. Where a matter has been lawfully brought before any court and a ques• jurisdiction. tion arises therein the decision of which is necessary for the trial of the mat• ter, the court may decide such question for the purposes of that matter even if the subject of the question is under the exclusive jurisdiction of another court or tribunal.

Civil jurisdiction 77. (a) If, where a person has been convicted in a Magistrates' Court or incidental to District Court, a civil claim is brought against him, and only against him, criminal jurisdiction. in relation to the facts constituting the offence of which he has been con• victed, the Judge or bench that has convicted him may, when the judgment in the criminal proceeding has become final, deal with the civil claim if the claimant so requests; for this purpose, a District Court shall be competent even if according to its value the claim is within the jurisdiction of a Magis• trates' Court. (b) The Minister of Justice shall, by regulations, prescribe the proce• dure for the civil claim, including provisions as to the time and manner of filing the claim and the appeal proceedings.

Change of venue. 78. Where a matter has been or is to be brought before a District Court or Magistrates' Court in one locality, the President or Deputy President of the Supreme Court may direct that it be dealt with by a court of the same grade in another locality; but a direction under this section shall not be issued after the commencement of proceedings in the matter save with the consent of the Judge who has begun to deal with it.

Relief in the case 79. (a) Where a court finds that it cannot deal with a matter before it be• of lack of cause such matter is not within its jurisdiction either ratione loci or ratione jurisdiction. materiae, and such matter is within the jurisdiction of another court or tri• bunal, such first-mentioned court may refer the matter to the other court or tribunal, and the latter shall deal with it as if it had been brought before it in the first instance, and it may deal with it from the stage reached by the previous court.

292 (b) The court to which a matter has been referred as aforesaid shall not refer it again.

80. Where a bench of three or more Judges is in disagreement, the view of Disagreement the majority shall prevail; if there is not a majority for any one view, the among Judges view of the Presiding Judge or, in a criminal case, the view which in the opinion of the Presiding Judge is most favourable to the accused shall pre• vail.

81. (a) Where a court finds that an error has occurred in any judgment or Correction of other decision given by it, it may, within twenty-one days of giving it, cor• error in judgment. rect it by reasoned decision, and it may hear arguments of the parties in the matter. For this purpose, "error" means a linguistic error, an arithmetical mistake, a slip of the pen, an accidental omission, an inadvertent addition, and the like. (b) With the consent of the parties, the court may at any time decide to correct any error in any judgment or other decision given by it. (c) Where a judgment or other decision has been corrected under sub• section (a), then, for the purposes of appeal, the date of the correction deci• sion shall be regarded as the date on which the judgment or other decision was given. (d) A decision under subsection (a) shall only be appealable in an ap• peal against the judgment or other decision.

82. The Minister of Justice shall prescribe rules for the administration of the Administrative courts and shall entrust their implementation to a Judge, who shall be re• rules. sponsible to him.

83. (a) The Minister of Justice shall regulate by regulations - Regulations. (1) the days of the sessions and vacations of the courts and execution offices and the handling of matters during vacations; (2) the publication of judgments of courts; (3) fees payable in courts and execution offices and exemption there• from; (4) travel-and-lodging allowances and compensation for loss of work• ing-time for witnesses summoned to testify in courts. (b) Regulations under subsection (a)(3) require the approval of the Constitution, Legislation and Juridical Committee of the Knesset.

293 Chapter Three: Registrars

Article One: Appointment

Appointment. 84. (a) The President of the Supreme Court may, with the approval of the Minister of Justice, appoint a Judge of a Magistrates' Court or a person qualified to be a Judge of a Magistrates' Court to be a Registrar or Assistant Registrar of the Supreme Court, a District Court or a Magistrates' Court. (b) Notice of the appointment shall be published in Reshumot, and when it has been published, the appointment shall not be disputed. (c) In this chapter, "Registrar" means a person appointed Registrar or Assistant Registrar under this section.

Article Two: Judicial Powers

Special powers. 85. Notwithstanding the provisions of any law relating to the practice and procedure of the civil and criminal courts, a Registrar shall have the special powers indicated in sections 86 to 90.

Judgment in 86. In an action in which a defendant does not defend himself, including an undefended action. action by summary proceeding in which the defendant has not been permitted ־ to defend himself, the Registrar may (1) require written evidence; (2) give an ex parte judgment against the defendant; (3) quash a judgment given under paragraph (2).

Agreed judgment. 87. In cases, whether in the first instance or under appeal, in which the par ties agree that judgment shall be given in accordance with an agreed wording, a Registrar may give judgment. The Registrar may also give judgment as aforesaid if the parties have agreed as to the substance of the case but have not agreed on the amount of the costs, so long as it has been agreed which of the parties is to bear the costs; the Registrar shall assess the costs and deter mine them in the judgment.

Striking out of 88. A Registrar may, on application or on his own motion, direct, in accor proceeding. dance with the rules of procedure, that any action or appeal be struck out for want of prosecution.

294 89. A Registrar may make a provisional order of attachment and, for that Provisional purpose, may make an order for the prohibition of the use of the thing at- attachment, tached and for its conservation, and he may revoke any such order as afore said.

90. A Registrar may hear and determine applications, .and issue directions in Sundry consequence thereof, as he may think fit, in all matters relating to the con applications. duct of proceedings, including the following: (1) security for costs, the application being by or on behalf of a plain tiff, defendant, appellant or respondent; (2) leave to sue in forma pauperis or deferment of payment of or ex emption from fees; (3) extension of time within which to file an appeal; (4) refund of court fees paid in error or as a result of overassessment or otherwise; (5) payment of money out of court; (6) appointment of guardians ad litem; (7) directions as to service of process, including substituted service; (8) assessment and allowance of fees and expenses of witnesses; (9) subject to the provisions of section 101, the hearing of any action, appeal or other proceeding, the application being of an urgent nature; (10) the appointment of any expert accountant or auditor or other expert where it may be necessary to have an expert opinion or report prior to the hearing of any action or other proceeding or the continuance of any action or other proceeding already established; (11) time to plead, leave to amend a pleading, discovery and production of documents, delivery of interrogatories; (12) fixing a date for the public examination of a debtor under the Bankruptcy Ordinance (New Version), 5740-19801 (hereinafter referred to .("as "the Bankruptcy Ordinance ׳

1) Dinei Medina! Yisrael (Nusach Chadash) No. 34, p. 639; NV vol. m, p. 131.

295 Powers conferred 91. Besides as provided in section 85 to 90, a Registrar may do everything by regulations. pertaining to procedure or practice, or to execution proceedings, which he is empowered to do by regulations.

Matters of 92. (a) A Registrar of a court having jurisdiction under the Succession succession. Law, 5725-19651, may exercise the power of a court or Judge for the pur• poses of notices of petitions for an order of succession, an order of probate or an order for the appointment of an administrator and in unopposed cases may make orders as aforesaid. (b) The Registrar may, on the application of an administrator or an in• terested party, issue directions in unopposed matters relating to the adminis• tration and property of the estate.

Matters of 93. A Registrar of a court having jurisdiction under section 78 of the guardianship. Capacity and Guardianship Law, 5722-19622, may approve unopposed acts under sections 20 and 47 of the said Law.

Matters of 94. In bankruptcy, a Registrar of a court having jurisdiction under sections bankruptcy. 172 and 173 of the Bankruptcy Ordinance may - (1) on a debtor's petition in bankruptcy, make a receiving order and declare the debtor bankrupt; (2) hold examinations under sections 27 to 32, 59 and 60 of the Bankruptcy Ordinance and make orders under the provisions of those sections.

Registrar's 95. Subject to section 96, a judgment or other decision of a Registrar shall decision to have have the effect of a judgment or other decision of the court in which he acts the effect of court decision. as a Registrar,

Appeal from 96. (a) A judgment of a Registrar under section 86 or 87 shall, for the decision of purposes of appeal, be deemed to be a judgment of the court in which he acts Registrar. as a Registrar. (b) Any other decision of a Registrar shall be appealable to the court in which he acts as Registrar, and the court may hear the appeal by a single Judge.

1) Sefer Ha-Chukkim of 5725, p. 63; LSI vol. XDC, p. 58. 2) Sefer Ha-Chukkim of 5722, p. 120; LSI vol. XVI, p. 106.

296 (c) A decision of a Magistrates' Court on an appeal under subsection (b) shall be appealable to the District Court if leave so to appeal has been granted by the Magistrates' Court or by the District Court or one of its Judges. (d) A decision of a District Court on an appeal shall be appealable to the Supreme Court if leave so to appeal has been granted in the decision it• self or by the President of the Supreme Court or by another Judge of the Supreme Court designated in that behalf by the President of the Supreme Court or has been granted by the Supreme Court.

Article Three: Other Powers

97. Agreed issues for determination by the court may be settled by the Reg• Settlement of istrar, who shall note on the record the names of the parties or advocates ap• agreed issues. pearing before him and the issues so agreed, but without prejudice to the power of the court to revise such issues in accordance with the pleadings.

98. Any question as to the assessment of court fees on any action, matter or Assessment of proceeding shall be referred to the Registrar. court fees.

99. The Registrar shall be the taxing master of the court in which he acts as Assessment of Registrar. costs.

100. Formal judgments and other formal decisions of the court may be Signature of signed by a Registrar. formal judgments.

101. The Registrar shall be responsible, under directives from the President Listing of cases or Deputy President of the Supreme Court, the President or Vice-President of and issue of notices of hearings a District Court or the President of a Magistrates' Court, as thé case may be, thereof. for the listing of cases in court or in chambers and may, on the application of a plaintiff or appellant or with the consent of the parties or their advo• cates, list any action, proceeding or appeal for hearing and issue the necessary notices in relation thereto.

Administration of 102. Any oath or affidavit may be sworn or made before a Registrar. oaths and receipt of affidavits. 103. Wherever in any law it is provided that any act or thing may be done Further power. by such officer as the court may appoint, that act or thing may be done by the Registrar.

297 Article Four: Miscellaneous Provisions

Application of 104. The provisions of sections 69 to 79 shall apply to a Registrar and to provisions. hearings before him; but a Registrar who is not a Judge shall not be compe• tent to exercise criminal jurisdiction or jurisdiction under section 72(a).

Registrar 105. (a) The Registrar shall exercise every power and perform every duty substituted for assigned to the chief clerk of the Supreme Court or of a District Court or chief clerk. Magistrates' Court. (b) Wherever in any law it is provided that any document shall be filed with the chief clerk of the court, it shall be filed in the registry.

Regulations. 106. The Minister of Justice may make procedural regulations for appeals under this chapter and, subject to the provisions of this chapter, regulations prescribing the powers and duties of the Registrar as to anything relating to the procedure and practice of the courts.

Chapter Four: Miscellaneous Provisions

Devolution of 107. (a) Every administrative power and every power to make rules of pro• powers. cedure vested in the Chief Justice shall vest in the Minister of Justice. (b) Every judicial power vested in the Chief Justice shall vest in the President and Deputy President of the Supreme Court.

Rules of procedure. 108. The Minister of Justice may, by rules of procedure, regulate the pro• cedure and practice before courts, registrars and execution offices in so far as they have not been prescribed by Law and, in particular - (1) any matter relating to appeals, further hearings and retrials under Chapter Two, including procedure as to applications for further hear• ings and retrials and the times for filing them; (2) the enlargement of times for the doing of anything that is a matter of procedure or practice, even though such times may have been pre• scribed by enactment; (3) the assessment of the costs of proceedings and the determination of a scale for the fees which a court or registrar may allow to advocates for their activities before it or him.

298 109. The Minister of Justice is charged with the implementation of this implementation and Law and may make.regulations for its implementation. \ regulations.

110. This Law shall not derogate from any other Law - Saving of Laws. (1) dealing with other courts and tribunals; (2) excluding particular matters from, or referring additional matters to, the jurisdiction of the courts dealt with by this Law; (3) prescribing, for any court, a particular composition and procedure for dealing with certain matters; (4) denying, or attaching conditions to, a right of appeal.

111. (a) A person who held office as a Judge immediately before the com-. Transitional ing into force of the Judges Law, 5713-1953, shall be deemed to have been provisions, appointed under this Law. (b) A Registrar who held office immediately before the coming into force of the Courts Law, 5717-1957, shall be deemed to have been appointed under this Law.

299 משיד המשפטים מםמך זה הינו העתק שנסרק בשלמותו ביום ובשעה המצוינים . בסריקה ממוחשבת מהימנה מהמסמך המצוי בתיק, בהתאם לנוהל הבדיקות במשרד המשפטים. על החתום « 9ן משרד המשפטים (התימה מוסדית). FIRST SCHEDULE (Section 37)

1. Offences under the following sections of the Penal Law, 5737-1977:

144; 169; 245 and 246 under the circumstances described in section 249A; 298; 302; 329; 330 to 332; 333 under the circumstances de• scribed in section 335; 336; 346; 347(b); 354(b); 369 to 375; 390; 402 to 404; 406 and 407 under the circumstances described in section 408; 448 to 450.

2. Offences under sections 117(a) and 118 of the Knesset Elections Law (Consolidated Version), 5729-1969'.

3. Offences under sections 75, 84 and 85 of the Post Office Ordinance (New Version), 5737-19762.

4. Offences under section 209 of the Customs Ordinance3.

SECOND SCHEDULE (Section 51)

1. Offences under the following sections of the Penal law, 5737-1977:

140, 141, 176, 237, 238, 240, 242, 243, 245, 246, 253(b), 257(1), 258, 259(2), 274, 281, 290, 291, 303, 313, 342, 347, 351, 354(a), 359, 360, 361, 382, 391 to 395, 406, 407, 410, 411, 441, 447(b), 453, 455, 457, 464, 465, 471 to 478, 499(1).

2. An offence under section 29(a) of the Railways Ordinance (New Ver• sion), 5732-19724.

3. An offence under section 36B(c) of the Traffic Ordinance5.

1) Sefer Ha-Chukkim of 5729, p. 196; LSI vol. XXIX, p. 110. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 29, p. 567; NV vol. m, p. 48. 3) Dinei Medinat Yisrael (Nusach Chadash) No. 3, p. 39; NV vol. I, p. 31. 4) Dinei Medinat Yisrael (Nusach Chadash) No. 23, p. 485; NV vol. II, p. 264. 5) Dinei Medinat Yisrael (Nusach Chadash) No. 7, p. 173; NV vol. I, p. 222.

300 THIRD SCHEDULE (Section 55)

1. Licensing of Businesses Law, 5728-19681.

2. Remembrance Day (Heroes of Israel's Battles) Law, 5723-19632.

3. Martyrs' and Heroes' Remembrance Day Law, 5719-19593.

4. Abatement of Nuisances, 5721-19614.

5. Public Health Ordinance, 1940s.

6. Public Health (Food) Ordinance (New Version), 5743-19836.

7. Chapter Three of the Civil Defence Law, 5711-19517.

8. Municipal Corporations (Water Supply) Ordinance, 1936s.

9. Bathing Places (Regulation) Law, 5724-19649.

10. Compulsory Education Law, 5709-194910.

11. Safety in Public Places Law, 5723-196311.

12. Local Authorities (Sewage) Law, 5722-196212.

13. Fire-Fighting Services Law, 5719-195913.

1) Sefer Ha-Chukkim of 5728, p. 204; LSf vol. XXII, p. 232. 2) Sefer Ha-Chukkim of 5723, p. 72; LSI vol. XVH, p. 85. 3) Sefer Ha-Chukkim of 5719, p. 112; LSf vol.Xm, p. 120. 4) Sefer Ha-Chukkim of 5721, p. 58; LSI vol. XV, p. 52. 5) P.G. of 1940, Suppl. I, p. 239 (English Edition). 6) Dinei Medinat Yisrael (Nusach Chadash) No. 36, p. 749. 7) Sefer Ha-Chukkim of 5711, p. 78; LSI vol. V, p. 72. 8) P.G. of 1936, Suppl. I, p. 1 (English Edition). 9) Sefer Ha-Chukkim of 5724, p. 172; LSI vol. XVHI, p. 170. 10) Sefer Ha-Chukkim of 5709, p. 287; LSI vol. m, p. 125. 11) Sefer Ha-Chukkim of 5723, p. 2; LSf vol. XVII, p. 3. 12) Sefer Ha-Chukkim of 5722, p. 96; LSI vol. XVI, p. 81. 13) Sefer Ha-Chukkim of 5719, p. 199; LSf vol. XHI, p. 215. 14. Rabies Ordinance1.

15. Section 196 of the Penal Law, 5737-1977.

16. Restriction on Smoking (Public Places) Law, 5743-19832.

17. Mining Ordinance3.

18. Maintenance of Cleanliness Law, 5744-19844.

19. Emergency Regulations (Protection of Educational Institutions), 5734- 1974s.

20. Haifa (Carmel Area) Conservation Regulations, 19436.

21. Traffic Regulations (Carmelit Underground Railway) (Traffic Rules and Safety Precautions), 5721-19617.

22. Animal Diseases (Slaughtering of Cattle) Regulations, 5724-19648.

MOSHE NISSIM Minister of Justice

1) P.G. of 1934, Suppl. I, p. 242 (English Edition).' 2) Sefer Ha-Chukkim of 5743, p. 148; LSI vol. XXXVU, p. 175. 3) Laws of Palestine vol. I, p. 938 (English Edition). 4) Sefer Ha-Chukkim of 5744, p. 145; supra, p. 190. 5) Kovetz Ha-Takkanot of 5734, p. 1902; Sefer Ha-Chukkim of 5744, p. 146 - supra, p. 197. 6) P.G. of 1943, Suppl. H, p. 679 (English Edition). 7) Kovetz Ha-Takkanot of 5721. p. 2093. 8) Kovetz Ha-Takkanot of 5724, p. 837. (No. 82)

BASIC LAW: THE GOVERNMENT (AMENDMENT No. 4)*

1. In section 5 of the Basic Law: The Government1, subsection (d) shall be Amendment of re-marked as subsection (e) and the following subsection shall be inserted section 5. before it:

"(d) A Minister who is a member of the Knesset may be Vice-Pre• mier.".

Section 19 of the Basic Law: The Government shall be replaced by the fol• Replacement of section 19. lowing section:

"Acting Prime 19. If the Prime Minister is absent from Israel or is Minister. temporarily unable to carry out his functions, the Vice- Premier shall act in his place until he returns to Israel or again carries out his functions; if there is no Vice-Pre• mier or if the Vice-Premier is absent from Israel or is temporarily unable to carry out his functions, the Gov• ernment shall designate another Minister who is a mem• ber of the Knesset to act in place of the Prime Minis• ter.".

SHIMON PERES Prime Minister CHAIM HERZOG President of the State

* Passed by the Knesset on the 16th Elul, 5744 (13th September, 1984) and pub• lished in Sefer Ha-Chukkim No. 1124 of the 24th Elul, 5744 (21st September, 1984), p. 220; the Bill and an Explanatory Note were published in Halza'ot Chok No. 1694 of 5744, p. 296. 1) Sefer Ha-Chukkim of 5728, p. 226 - LSI vol. XXH, p. 257; Sefer Ha-Chukkim of 5733, p. 236 - LSI vol XXVTI, p. 265; Sefer Ha-Chukkim of 5740, p. 6 - LSI vol. XXXIV, p. 6; Sefer Ha-Chukkim of 5741, p. 280 - LSI vol. XXXV, p. 339.

303 BUDGET (FINANCIAL YEAR 1983) (No. 2) LAW, 5744-1984*

Variation of 1. In addition to the amounts which it is authorised to expend under the amounts. Budget (Financial Year 1983) Law, 5743-19841 (hereinafter referred to as "the principal Law"), the Government may expend in the financial year 1983 an amount of 432,500,000,000 shekalim.

Amendment of 2. In section 27(a) of the principal Law, the expression "148,923,000,0002 section 27. shekalim" shall be replaced by the expression "587,168,174,000 shekalim".

Application of 3. The provisions of the principal Law shall apply also to the amounts

provisions. undef this Law

Commencement. 4. This Law shall have effect from the date of the coming into force of the principal Law.

* Passed by the Knesset on the 24lh Adar Bet, 5744 (28th March, 1984) and pub• lished in Chukkei Taklziv No. 90 of even date, p. 3; the Bill was published in Chukkei Taklziv (Hatza'ol) No. 79, p. 21. 1) Chukkei Taklziv No. 89, p. 5. 2) This amount was fixed by a decision of the Finance Committee of the Knesset on the 7th Tevct, 5744 (13th December, 1983) by virtue of its power under section 27(b) of the principal Law. FIRST SCHEDULE TO BUDGET (FINANCIAL YEAR 1983) (No. 2) LAW

ri.000 shekalim•)

GRAND TOTAL 432,500,000

Part A: Ordinary Budget 312,000,000

PartB: Development Budget and Capital Account 120,500,000

Part A: Ordinary Budget 312,000,000

GOVERNMENT AND ADMINISTRATION 56,802,000 01 President of the State 1,000 05 Ministry of Finance 186,000 06 Ministry of the Interior 11,000 07 Police 514,000 08 Ministry of Justice 72,000 09 Ministry of Foreign Affairs 118,000 12 Benefits and Compensation 2,900,000 13 Sundry Expenditure 53,000,000

DEFENCE 53,000 17 Contribution to Expenditure of Civil Administration 53,000

18 LOCAL AUTHORITIES 2,228,000

SOCIAL AND COMMUNITY SERVICES 9,361,000 20 Ministry of Education and Culture 1,750,000 21 Higher Education 415,000 22 Ministry of Religious Affairs 100,000 23 Ministry of Labour and Social Affairs 5,277,000 24 Ministry of Health 1,526,000 25 Pensions to Invalids 184,000 28 Contribution to Broadcasting Authority 49,000 29 Ministry of Construction and Housing 50,000 30 Ministry of Immigrant Absorption 10,000

ECONOMIC PURPOSES 11,095,000 33 Ministry of Agriculture 51,000 34 Ministry of Energy and Infrastructure 5,000 36 Ministry of Commerce and Industry 13,000 37 Ministry of Tourism 6,000 38 Development of Export Markets 11,000,000 40 Ministry of Transport 20,000

305 (shekalim 1.000)

5,100,000^ 44 CREDIT SUBSIDY :

226,962,000PAYMENT OF INTEREST AND COMMISSIONS 45

RESERVES 399,000 399,000' 47 General Reserve

120,500,000PartB: Development Budget and Capital Account Development Budget 2,100,000

INVESTMENTS IN BRANCHES OF THE ECONOMY 2,100,000

2,100,000 _־''.. '•־•''"•' Industry ׳ 76

118,360,000 Payment of Debts 84 Reserve for Development Expenditure 7 8 40,000

306 FORECAST No. 2 OF RECEIPTS AND LOANS FOR THE FINANCIAL YEAR 1983

(1.000 shekalim)

GRAND TOTAL 432,500,000

Part A: Ordinary Receipts 312,000,000 Part B: Receipts from Loans and Capital Account 120,500,000

Part A: Ordinary Receipts 312,000,000

Taxes and Compulsory Payments 6,059,000

Taxes on Income and Property

001 Income Tax 1,000,000 520,000 (־) Appreciation Tax 003 004 Acquisition Tax (-) 880,000 005 Property Tax 400,000 Taxes on Expenditure 6,059,000

011 Customs Duty and Import Charge (-) 1,490,000 012 Value-Added Tax (includes defence imports) (-) 4,459,000 013 Purchase Tax (-) 2,420,000 015 Excise 2,650,000 018 Fuel Tax 2,140,000 020 Stamp Duty (-) 550,000 021 Foreign Currency Charge 1,920,000 023 Abolished Taxes 850,000 024 Vehicle Fees (-) 719,000 025 Other Licensing Fees (-) 738,000 026 Import Deposit 8,875,000

Transferredfrom the Above (-)1,032,000

032 To Local Authorities Direct (-) 760,000 1) Vehicle Fees (21 p. ct.) (-) 151,000 2) Land Appreciation Tax (60 p. ct.) (-) 312,000 3) Acquisition Tax (1/3) (-) 297,000 033 By Way of General Grant-in-Aid (Ministry of the Interior) (-) 272,000 1) Purchase Tax (5 p. ct.) (-) 121,000 2) Vehicle Fees (1/3) (-) 151,000

Interest and Profits (-)14,806,000 035 Collections of1 Interest 4,325,000

307 q.QQP ühetolim)

Interest in Foreign Currency 3,078,000 040 Profits of Bank of Israel (-) 22,209,000 Transfer from PartB 320,747,000

PartB: Receipts from Loans and Capital Account 120,500,000 Repayment of Investments and Government Loans (•)10,424,174 Collection of Principal (-) 5,198,000 Principal in Foreign Currency 71,000 Revenue o/a Participation in Communications Investments (-)5,297,174 Internal Loans 13,426,000 081 Loan from National Insurance Institute 9,926,000 082 Revenue from Emissions and Deposits 3,500,000 Advance Payment from Bank of Israel to Finance Expenditure 438,245,174 093 Advance Payment from Bank of Israel to Finance Expenditure 438,245,174

Transfer to Part A (•)320,747,000

308 BUSINESS ENTERPRISES BUDGET No. 2 FOR THE FINANCIAL YEAR 1983

PART A: Revenue

96 Ministry of Communications 190,000

PART B: Expenditure

96 Ministry of Communications 190,000

(The further breakdown of the Additional Budget for the Financial Year 1983 is omitted in this translation.)

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance

CHAIM HERZOG President of the State

309 BUDGET (FINANCIAL YEAR 1984) LAW, 5744-1984*

Chapter One: Definitions

Definitions. 1. In this Law -

"the financial year 1984" means the financial year beginning the 28th Adar Bet, 5744 (1st April, 1984) and ending the 9th Nisan, 5745 (31st March, 1985);

"the Committee" means the Finance Committee of the Knesset;

"budget head" means an amount, or a number of posts, specified in a heading marked with a double broken line;

"field of operation" means an amount, or a number of posts, specified in a heading marked with a line of single dashes alternating with two dots;

"scheme" means an amount, or a number of posts, specified in an unmarked heading;

"person in charge of budget head" -

(1) in respect of budget head 01, "President of the State", means the person appointed in that behalf by the President;

(2) in respect of any other budget head, except budget head 02, "Knesset", means the Minister designated in that behalf by the Govern• ment by notice to the Committee or the person appointed in that behalf by that Minister;

"manpower ceiling" means the maximum number of posts in which perma• nent, temporary and casual employees (except casual employees on occa• sional assignments for periods of up to 120 days) may be employed.

Chapter Two: Authorisation to Expend I^oneys

Expenditure Budget 2. The Government may expend in the financial year 1984 an amount of thereof'510" 4,360,000,000,000 shekalim, consisting of - (1) 2,467,000,000,000 shekalim - Ordinary Budget;

* Passed by the Knesset on the 24lh Adar Bet, 5744 (28th March, 1984) and pub• lished in Chukkei Taklziv No. 91 of the 17ih Sivan, 5744 (17th June, 1984), p. 67; the Bill was published in Chukkei Taklziv (Hatza'ot) No. 78, p. 2.

310 (2) 913,000,000,000 shekalim - Development Budget and Capital Ac count;

(3) 980,000,000,000 shekalim - Repayment of Debts to Bank of Is rael.

The division of these amounts into budget heads, fields of operation and schemes shall be as set out in the first column of the First Schedule, head lined "Expenditure".

3. (a) In addition to the amounts which it is authorised to expend under Revenue- section 2, the Government is authorised to expend in the financial year 1984, Condilioned Expenditure as revenue-conditioned expenditure, an amount of 190,539,757,000 Budget. shekalim, plus the amounts added under section 9(a)(2), provided that the re ceipts to finance the expenditure have been obtained.

(b) The division of the amount referred to in subsection (a) into parts and of each part into budget heads, fields of operation and schemes shall be as set out in the second column of the.First Schedule, .headlined "Revenue- Conditioned Expenditure". . .

(c) The Government is authorised to expend the amounts of the Rev enue-Conditioned Expenditure Budget on condition that the amount expended on a particular scheme does not exceed the amount of receipts which will ac tually have been obtained for that scheme by the expiration of the financial year. If the receipts actually obtained for a particular scheme exceed the amount specified in the aforesaid second column, theexcess shall be trans ferred to the Treasury and shall not be expended except if and to the extent that the amount has been increased under section 9(a)(2).

(d) Receipts derived from a loan shall only be used to finance expendi ture under budget heads in Part B of the First Schedule. .

4. In respect of a scheme in the First Schedule in which an amount appears Authorisation to in the third column, headlined "Authorisation to Contract Liabilities", no li contract liabilities. ability shall be contracted in the financial year 1984 save within the limits of ' ׳ .that amount

5. The Government may in the financial year 1984 fill 68,117 posts, plus Manpower ceiling. the posts added tinder section 9(a)(8). The division of this number of posts into parts and of each part into budget heads, fields of operation and schemes shall be as set out in the fourth column of the First Schedule, headlined "Manpower Ceiling".

311 Security Budget. 6. (a) The amount appropriated in the Expenditure Budget under budget head 15, "Ministry of Defence", is hereinafter referred to as "the Security Budget". The division of the Security Budget into fields of operation and schemes shall, upon the proposal of the Government, be prescribed by a joint committee of the Finance Committee and the Foreign Affairs and Security Committee of the Knesset.

(b) A "Security (Revenue-Conditioned Expenditure) Budget" and a "Security (Business Enterprises) Budget" shall be added to the Security Bud• get, and authorisations to contract liabilities, as well as manpower ceilings, shall be indicated in the Security Budget; for these purposes, sections 3,4,5 and 7 shall apply mutatis mutandis to the Security Budget.

(c) For the purposes of the Security Budget, every reference in this Law to the Committee shall be deemed to be a reference to the joint committee mentioned in subsection (a).

Business 7. (a) In addition to the amounts which it is authorised to expend under Enterprises Budget. sections 2 and 3, the Government is authorised to expend in the financial year 1984 the amounts specified in the first column of the second part of the Second Schedule (such amounts hereinafter referred to as the "Business En• terprises Budget"). The division of the Business Enterprises Budget into bud• get heads, fields of operation and schemes shall be as set out in that part.

(b) The provisions of section 4 shall apply to a scheme in the second part of the Second Schedule in which any amount appears in the third col• umn.

(c) In addition to the number of posts which it is authorised to fill un• der section 5, the Government is authorised to fill in the financial year 1984 7,448 posts in business enterprises. The division of the said posts into bud• get heads, fields of operation and schemes shall be as set out in the fourth column of the second part of the Business Enterprises Budget.

(d) The estimated receipts to cover the Business Enterprises Budget in the financial year 1984 are as set out in the first part of the Second Schedule.

(e) If the Minister of Finance considers that any of the amounts of re• ceipts set out in the first part of the Second Schedule will exceed the estimate or that any additional receipts, outside the estimate, will be obtained, he may, by notice to the Committee, prescribe the schemes for which the addi• tional amounts are to be expended: Provided that an amount exceeding 48,000,000 shekalim or 15 per cent of the amount of the original scheme may only be expended with the prior approval of the Committee.

312 (f) An amount appropriated under budget head 89, 90, 93, 95, 96, 97 or 98 of the Business Enterprises Budget to the payment of the consideration for any work, service or property shall be deemed to have been expended when the work has been carried out or the service or property has been re• ceived.

(g) In this section, "receipts", for the purposes of the budget heads in• dicated in subsection (f), includes the value of services rendered and property supplied in the financial year 1984.

8. (a) In this section - Updating of Budget. "quarter" means a three-month period beginning on the 1st April, the 1st July, the 1st October and the 1st January, respectively;

"receipts" does not include an advance payment under section 27 nor a foreign-currency loan or grant not included in the Forecast of Receipts and Loans for the Financial Year 1984.

(b) Before the expiration of every quarter, from the quarter beginning on the 1st July, 1984, the Minister of Finance shall update the Expenditure Budget, the Revenue-Conditioned Expenditure Budget and the Business En• terprises Budget. The updating shall be done with reference to the amount of the receipts obtained in the preceding quarter, to the Forecast of Receipts for the subsequent quarters, and to the various aspects of inflation, viz., in par• ticular -

(1) changes in the consumer price index and other indexes pub• lished by the Central Bureau of Statistics;

(2) developments and changes in the fields of wages and the cost- of-living allowance;

(3) changes in the rates of exchange of foreign currencies;

(4) changes in the level of activity and employment in the econ• omy.

(c) The updating may be at different rates for different budget heads, fields of operation and schemes, provided that it is done, with reference to all or part of the considerations referred to in subsection (b), according to the nature of each of the budget heads, fields of operation and schemes.

(d) The Minister of Finance may in every quarter update the amounts of the authorisation-to-contract-liabilities which had not been contracted for by the end of the preceding month. The provisions of subsections (b) and (c) shall apply to this matter mutatis mutandis.

313 (e) Upon every updating, the Minister of Finance may update, at a rate not exceeding the rate of the increase of the Expenditure Budget at that updating, the amount not utilised by the end of the preceding quarter of the advance payment under section 27.

(f) At every date of updating, the Minister of Finance shall update the amounts specified in section 8(e), 9,10,15 and 22 at a rate not exceeding teh rate of the increase of the Expenditure Budget at that updating.

(g) Updating under this section shall require the approval of the Com mittee.

Variations. 9. (a) Upon the proposal of the person in charge of any budget head in the First Schedule, except budget head 02, "Knesset", the Minister of Fi nance may -

(1) by notice to the Committee transfer any amount of expendi ture from one scheme to another or a newly-added scheme of that budget head: Provided that he shall not in this manner vary any scheme by an amount exceeding 48,000,000 shekalim or 15 per cent of the original scheme, save with the prior approval of the Committee;

(2) by notice to the Committee increase the amount of revenue- conditioned expenditure in any scheme, or add revenue-conditioned expenditure in a newly-added scheme, of that budget head: Provided that he shall not in this manner vary any scheme by an amount exceeding 48,000,000 shekalim or 15 per cent of the original scheme, save with the prior approval of the Committee;

(3) by notice to the Committee transfer any amount of revenue- conditioned expenditure from one scheme to another or a newly added scheme of that budget head: Provided that he shall not in this manner vary any scheme by an amount exceeding 48,000,000 shekalim or 15 per cent of the original scheme, save with the prior ׳ ;approval of the Committee

(4) by notice to the Committee transfer any amount of an authorisation-to-contract-a-liability from one scheme to another of that budget head: Provided that he shall not in this manner vary any scheme by an amount exceeding 87,000,000 shekalim or 15 per cent of the original scheme, save with the prior approval of the Committee;

314 (5) with the prior approval of the Committee increase the amount of an authorisation-to-contract-a-liability in any scheme, or add an authorisation-to-contract-a-liability in a newly-added scheme, of that budget head;

(6) transfer any number of posts, together with the amount of ex• penditure required therefor, from one scheme to another or a newly- added scheme of the same field of operation: Provided that he shall not in this manner vary any scheme by a number of posts exceed• ing fifty or 20 per cent of the number of posts in the original scheme, save by notice to the Committee;

(7) by notice to the Committee transfer any number of posts from a scheme in one field of operation to a scheme in another field of operation, or a newly-added scheme, of that budget head: Provided that he shall not in this manner vary any field of operation by a number of posts exceeding fifty or 20 per cent of the number of posts in the original field of operation, save with the prior approval of the Committee;

(8) with the prior approval of the Committee increase the number of posts in any scheme, or add posts in a newly-added scheme, of that budget head, provided that the increase or addition arises out of a transfer of employees from an institution to the budget of which the Government contributes to the State Service as a result of the transfer of a function from that institution to the State.

(b) In budget head 02, "Knesset", the Committee may, upon the pro• posal of the Chairman of the Knesset -

(1) transfer any amount or number of posts from one scheme to another or a newly-added scheme;

(2) increase the amount of revenue-conditioned expenditure in any scheme.

(c) Upon the proposal of the person in charge of any budget head in the second part of the Second Schedule, the Minister of Finance may -

(1) by notice to the Committee transfer any amount of expendi• ture or of any authorisation-to-contract-a-liability from one scheme to another or a newly-added scheme of that budget head: Provided that he shall not in this manner vary any scheme by an amount exceeding 87,000,000 shekalim or 20 per cent of the original scheme, save with the prior approval of the Committee; (2) with the prior approval of the Committee increase the amount contract-a-liability in any scheme, or add an־of an authorisation-to authorisation-to-contract-a-liability in a newly-added scheme, of that budget head;

(3) transfer any number of posts, together with the amount of ex penditure required therefor, from one scheme to another or a newly- added scheme of the same field of operation;

(4) by notice to the Committee transfer any number of posts from a scheme in one field of operation to a scheme in another field of operation, or to a newly-added scheme, of that budget head: Pro vided that he shall not in this manner vary any scheme by a num ber of posts exceeding fifty or 20 per cent of the number of posts in the original field of operation save with the prior approval of the Committee.

(d) The Minister of Finance may, by notice to the Committee -

(1) transfer any amount or number of posts from one budget head in the First Schedule to other budget heads in so far as such is re quired by changes in the structure or functions of Government Ministries, provided that the amounts transferred as aforesaid are expended for the purposes to which they were appropriated and that the posts transferred as aforesaid serve the purposes to which they were appropriated; the same shall apply in the event of changes in the structure or functions of business enterprises;

(2) vary the numbering or title of any budget head, field of opera tion or scheme, provided that no change occurs in the purpose to which the amount, or number of posts, is appropriated.

(e) The Minister of Finance may, by notice to the Committee, transfer any amount, or number of posts, from any scheme to budget head 47, "General Reserve", or to budget heads 48 and 88, "Reserves for Price In creases"; the same shall apply in respect of budget head 87, "Reserve for De velopment Expenditure": Provided that the transfer shall in this case be from budget heads in Part B of the First Schedule.

Use of reserves. 10. (a) The Minister of Finance may, by notice to the Committee, pre scribe the purposes for which the amounts and posts set out in budget head 47, "General Reserve", shall be expended or filled: Provided that he shall not in this manner increase any scheme by an amount exceeding 48,000,000 shekalim or 15 per cent of the scheme, or by a number of posts exceeding

316 twenty-five or 15 per cent of the number of posts of the scheme, save with the prior approval of the Committee. The same shall apply to the amounts of budget head 87, "Reserve for Development Expenditure": Provided that these may only be expended under budget heads in Part B of the First Schedule.

(b) The Minister of Finance may, with the prior approval of the Committee, prescribe the purposes for which the amount of budget head 16, "Emergency Expenditure (Civilian)", is to be expended.

(c) The Minister of Finance may, by notice to the Committee, pre• scribe the apportionment of the amounts of budget heads 48 and 88, "Reserve for Price Increases": Provided that these may only be used to cover price in• creases in existing schemes.

11. (a) Where a surplus amount remains in any of the heads of expenditure Use of surpluses of fixed in or under the Budget (Financial Year 1983) Law, 5743-19831, other 1983 Budset• than head of expenditure 02, "Knesset", the Minister of Finance may permit such amount to be used for the scheme in which it was included or, if it is not a revenue-conditioned expenditure, for another scheme in the same budget head, subject to the provisions of section 9 of the said Law.

(b) Where a surplus amount remains in budget head 02, "Knesset", fixed in the Budget Law for the financial year 1983, the Committee may, on the proposal of the Chairman of the Knesset, permit it to be used for a scheme in the same budget head.

(c) Where a surplus amount remains in any of budget heads 47,48, 87 and 88, "Reserves", fixed in the Budget (Financial Year 1983) Law, the Minister of Finance may, with the prior approval of the Committee, permit it to be used for a purpose prescribed by him.

(d) Where the use of a surplus amount has been permitted under this section, such amount shall, with any such adaptation as may be appropriate, be added to the Budget for the financial year 1984 as if it were a part thereof.

(e) In this section and in section 12, "surplus amount", in respect of any revenue-condiuoned expenditure, means an excess of receipts obtained for financing such expenditure over the actual expenditure.

12. (a) Where a surplus amount remains in any of the schemes fixed in or Special surpluses, under the Budget (Financial Year 1983) Law, 5743-1983, and enumerated in

1) Chukkei Taktziv of 5743, p. 5; LSI vol. XXXVJJ, p.189. the Third Schedule (the enumeration hereinafter referred to as "the Special Surpluses List"), the Minister of Finance may, by notice to the Committee, permit it to be used for the scheme in which it was included.

(b) The Minister of Finance may, with the prior approval of the Committee, add a scheme to the Special Surpluses List.

(c) Where the use of a surplus amount has been permitted under this section, such amount shall, with any such adaptation as may be appropriate, be added to the Budget for the financial year 1984 as it were a part thereof.

Time for notice or 13. Notice to, or a request for approval by, the Committee under sections 9

:(be fUed "0t later than ±& Vth Adar> 5745 (28th FebruarV- 1985 ״Committed t0 12 Sha Provided that the Committee may, in special cases, permit it to be filed at a later date.

Appropriated 14. An appropriated amount shall be deemed to have been expended when amount deemed to the person entitled thereto has been sent a notification that his account with have been expended. the Accountant-General has been credited therewith.

Linkage insurance. 15. (a) In the financial year 1984, the Government shall not without the prior approval of the Committee undertake to make indemnification for an increase of the consumer price index or a change of the rate of the currency where the amount of the undertaking exceeds 4,800,000 shekalim.

(b) Every six months, the Minister of Finance shall deliver to the Committee a report of undertakings as aforesaid given during the said period in cases where its approval was not required.

Chapter Three: Provision as to Bodies Corporate and Local Authorities

Definitions for the 16. In this Chapter - purposes of bodies corporate. "body corporate" means - §

(1) a body corporate, other than the Bank of Israel and other than a re ligious council, established by Law or by virtue of the power of a Min ister conferred by Law and which is an agency of the State or to which one of the following applies:

(a) the Government contributes, directly or indirectly, to its bud get;

318 (b) all or part of its members or the members of its management are appointed by the Government or a Minister;

(2) a company limited by guarantee of which a Minister or the head of a local authority appoints a member and in respect of which the Minis• ter of Finance has prescribed that all or part of the provisions of sections 17 to 24 shall apply;

"the Minister concerned", in relation to a body corporate, means the Minister charged with the implementation of the Law under which that body corporate was established;

"the financial year 1984", in relation to a body corporate, includes a twelve-month period beginning on any date in the year 1984 and on the basis of which that body corporate administers its budget;

"excess amount" means the amount by which a body corporate or local authority exceeds its approved budget or the amount involved in its em• ploying workers in excess of its approved budget or of the manpower ceiling or the amount of a loan accepted by it without approval;

"urban company" means a company in which more than half the voting power at general meetings or the right to appoint more than half the number of directors is held by a local authority or by a local authority jointly with the State or with another urban company or with an urban subsidiary company;

"urban subsidiary company" means a company in which more than half the voting power at general meetings or the right to appoint more than half the number of directors is held by an urban company, by an urban subsidiary company or by an urban company jointly with another urban subsidiary company.

17. The budget of a body corporate for the financial year 1984 requires the Budget of body approval of the Minister of Finance; this provision shall not affect its being corporate, subject to any other approval.

18. A person empowered by any law to approve the budget of a particular Variations in body corporate is also empowered to approve, by notice to the Minister of budget of bodies corporate and use Finance - of surpluses. (1) the transfer of amounts and posts from one item of the budget to another;

(2) the use of a surplus amount remaining from the budget of the body corporate for the financial year 1983:

319 Provided that no amounts shall be transferred in this way from an ordinary budget to a development budget or vice versa.

Reduction of 19. (a) The Minister of Finance may, in consultation with the Minister budget or manpower concerned, prescribe the manpower ceiling of any body corporate or, by reso• ceiling. lution of the Government, direct it to reduce its budget or its manpower ceil• ing by an amount or at a rate prescribed by him.

(b) The Minister of the Interior may prescribe the manpower ceiling of any local authority or, by resolution of the Government, direct it to reduce its budget or its manpower ceiling by an amount or at a rate prescribed by him.

(c) General resolutions of the Government as to the reduction of bud• gets and manpower ceilings and as to wage policy under section 24 shall ap• ply mutatis mutandis to the Bank of Israel.

(d) A direction under this section may be general, for particular cate• gories of cases or for a particular body corporate or local authority.

Powers as to body 20. (a) Where it appears to the Minister of Finance that a body corporate- rnmnrntp (1) carries out any work or operation not provided for in its ap• proved budget, or exceeds its approved budget or

(2) carries out any work or operation under a contract which re• quires approval under any law but which has not been so approved or

(3) employs workers in a number of posts exceeding its man• power ceiling or in posts not provided for in its approved budget or

(4) accepts a loan requiring approval under any law but which has not been so approved, he may, after consultation with the Minister concerned, take steps specified in subsection (b) which in his opin• ion are necessary to remedy the defect; his refraining from doing so shall require approval by the Committee.

(b) The steps referred to in subsection (a) may include -

(1) a direction to discontinue the work or operation;

(2) a direction to discontinue the employment of workers in ex• cess of the budget or the manpower ceiling as specified in subsec• tion (a)(3);

320 . (3) the deduction of the amount of the excess from ,the amount of the grant or contribution which the body corporate would have re- . ceived from the Government but for the excess. ,

21. (a) Where it appears to the Minister of the Interior that a local author• Powers as to local authority. ity does one of the things specified, in section. 20(a), he may deduct the amount of the excess from the amount of the grant which he has assigned to that local authority and may take steps as specified in section 20(b)(1) and (2); his refraining from doing so shall require approval by the Committee.

(b) Where it appears to the Minister of the Interior that anything done by a local authority in excess of its budget or its manpower ceiling has not been remedied, he may, jointly with the Minister of Finance, deduct the amount of the excess from the moneys of any grants or from any other amount transferred to it by the Government, and the Minister of Finance may, in consultation With the Minister of the Interior, deduct the amount of the excess from the amount of any taxes or fees to be transferred to that local authority by the Treasury under any law. The Minister's refraining from the exercise of his power under.this subsection shall require approval by the Committee.

22. A contract of a body corporate or local authority involving a considera• Contract of body tion of not less than 700,000 shekalim shall indicate - corporate or local authority. (1) that all the conditions have been fulfilled, and all the approvals re• quired by any law given, in respect thereof;

(2) that the monetary expenditure for the performance of the contract has been budgeted (the relevant budget head shall be indicated).

23. The Minister of Finance may, with the approval of the Committee, ex• Exemption. empt a body corporate from the application of all or part of thé provisions öf sections 17 to 22.

24. In the financial year 1984, no body corporate, local authority, govern• Variations in pay ment company, municipal company or religious council shall agree to, or and in conditions of service. introduce, variations in pay, in conditions of retirement or in benefits, or any other financial advantages connected with employment, save in accordance with variations or advantages agreed on or introduced in respect of all State employees, or with the approval of the Minister of Finance. Any agreement or other arrangement shall be void, notwithstanding anything provided in any law, to the extent that it conflicts with the provisions of this section.

321 Fees payable to 25. The imposition of any taxes, fees and other compulsory charges payable body corporate. to a body corporate, and any variation of the rate thereof, shall require ap• proval by the Minister of Finance in addition to approval required under any law.

Taxes payable to 26. The Minister of the Interior shall, in consultation with the Minister of local authorities. Finance, prescribe rules for the imposition of any taxes, fees and other com• pulsory charges payable to à local authoritiy and for any variations of the rates thereof. ' '

Chapter Four:.Miscellaneous Provisions

Advance payment 27. (a) The Government is hereby authorised to accept from the Bank of from Bank of •Israel and the Bank of Israel is hereby authorised to make to the Government Israel. an advance payment of an amount not, exceeding 1,128,803,000,000 shekalim, consisting of - ,

(1) 250,723,000,000 shekalim to finance expenditure of the Govern• ment;

(2) 378,180,000,000 shekalim for the repayment of debts to the Bank of Israel. ...

(b) The conditions, and times of repayment, of the advance payment shall be prescribed by agreement between the Minister of Finance and the Governor of the Bank of Israel with the approval of the Committee.

(c) This section shall.not derogate from the provisions of section 45 of the Bank of Israel Law, 5714-19541, relating to provisional advances.

Repons. 28. (a) Within six months after the expiration .of the.financial year 1984, the Minister of Finance shall submit to the Knesset reports -

(1) of the receipts obtained;

(2) of the expenditure, including revenue-conditioned expenditure, incurred; '.' , . ,

',•׳•״׳ ״ ;of the number of posts filled (3)

1) Sefer Ha-Chukkim of 5714, p. 192; LSI vol. VU, p. 163.

322 (4) of undertakings given under section 15;

(5) of transfers made under section 9(a)(6) and (c)(3).

(b) The reports shall be drawn up with reference to the Budget and the Business Enterprises Budget for the financial year 1984 in a form enabling a comparison of the amounts of expenditure incurred and the number of posts filled with the amounts and the number of posts set out in the budget heads, fields of operation and schemes.

29. (a) The Minister of Finance is charged with the implementation of this Implementation, Law and may make regulations and issue administrative directions as to any regulations and delegation of matter relating to its implementation, including the further breakdown of powers. schemes, except schemes in budget head 02, "Knesset".

(b) The Chairman of the Knesset may make regulations and issue ad• ministrative directions as to the further breakdown of schemes in budget head 02, "Knesset".

(c) The Minister of Finance may delegate any of his powers under this Law, including the power to issue administrative directions concerning rules for the fiscal administration and accountancy of the State, but not including the power to make regulations.

30. The validity of this Law shall not be affected by the fact that the Bill Validity. was presented to the Knesset after the time prescribed by the Basic Law: The State Economy1.

31. This Law shall have effect from the 28th Adar Bet, 5744 (1st April, Commencement. 1984).

32. This Law shall be published in Reshumot within three months from the Publication, date of its adoption.

(Following are condensed versions, as appearing at the beginning of the First and the Second Schedule, respectively, of the Ordinary and Development Budgets and the Business Enterprises Budget. The remainder of the First and the Second Schedule, containing the further breakdown of the said Budgets, and the Third Schedule, containing the Special Surpluses List (see section 12 of the Law), are omitted in this translation).

1) Sefer Ha-Chukkim of 5735, p. 207; LSI vol. XXIX, p. 273.

323 ORDINARY BUDGET AND DEVELOPMENT BUDGET FOR THE FINANCIAL YEAR 1?84, (EXPENDITURE). . ,,

Revenue- Authorisation ־׳• •Conditioned , to Contract Manpower Head • Expenditure Expenditure Liability* Ceiling

(1,000 (1,000 (1,000 shekalim) shekalim) shekalim)

68,117.0׳ . • GRAND TOTAL 4,360,000¿000 190,539,757 Part A:'.Ordinary Budget • 2,467,000,000 107,702,448 X 68,117,0 Part B: Development Budget and Capital Account 913,000,000. 82,837,309 PartC: Repayment of Debts to "., , Bank of Israel ' 980,000,000

Part A: Ordinary Expenditure 2,467,000,000 107,702,448 68,117.0 GOVERNMENT AND ' 6Í084,830 30,546.0 128,535,000׳ ADMINISTRATION 39.0 5,100׳ 'President of the State' ' 145,000 01 02 Knesset 1,655,000 331.5 03 Members of the Government , 97,000 04 Prime Minister's Office ' 1,511,000 61,500 660.0 05 Ministry of Finance" '' 15,087,000 1,254,150 ' 98,000 6,653.5 06 Ministry of the Interior 2,145,000 132,300 ' ' 701.0 Police 39,666,000^ 2,663,200 .6,523,000 18,722.5 1,901,5 ;' 366,700 ' 5,560,000׳ ' ' Ministry of Justice 08 09 Ministry of Foreign Affairs 10,675,000 926,780 403,600 877.0 10 Ministry of Economics and Interministerial Coordination 254,000 ' ' 67.5 531.0׳ State Comptroller's Office 1,498,000 11 12 Benefits and Compensation 37,625,000 • 640,000.- ״. Sundry Expenditure 11,172,000 13 ־ Financing of Political Parties • 000*794 14 '>׳• & Ministry of Science 19 Development ,; . • 651,000 35,100 • 61.5 DEFENCE 771,185,000 2,543.0 15 Ministry of Defence 764,600,000 2,543.0

Aggregate of amounts set out in schemes in the column "Authorisation to Contract Liability".

324 Revenue- Authorisation Conditioned to Contract Manpower •.׳׳..• •• .• Head Expenditure Expenditure Liability* Ceiling

(1,000 (1,000 (1,000 shekalim) shekalim) shekalim)

16 Emergency Expenditure (Civilian) 800,000 17 Contribution to Budget • of Israel-Held Areas 5,785,000 18 Local Authorities 66,000,000 218,000 Social and Community Services 562,146,000 59,422,748 29,808.0 20 Ministry of Education and Culture 162,648,000 15,252,576 2,555.0 21 Higher Education 39,925,000 22 Ministry of Religious Affairs 11,880,000 141,000 419.6 23 '1Ministry of Labour and 'Social Affairs 136,870,000 3,244,002 4,327.0 24• Ministry of Health 60,035,000 40,661,170 19,642.0 25• Pensions to Invalids , 7,378,000 50,000 69.5 28 Contribution to Broadcasting Authority 230,000 Ministry of Construction ׳29 and Housing 4,500,000 35,000 2,080,000 2,370.0 ' ׳- 30 Ministry of Immigrant Absorption . 4,240,000 39,000 425.5 32 Subsidies for the Prices of'

Basic Commodities and for • - Agricultural Production 134,440,000 ECONOMIC PURPOSES 88,817,000 42,194,870 5,082.0 33 Ministry of Agriculture 6,880,000 2,088,675 2,540.5 Compensation to Residents of Sinai 1,000,000 34 Ministry of Energy and Infrastructure 700,000 33,624,470 278.0 35 Atomic Energy Commission 3,000,000 36 Ministry of Commerce and Industry 3,406,000 658,800 135,000 771.0 37 Ministryof Tourism 2,050,000 62,550 227.0 38 Development of Export Markets 66,792,000

325 Revenue- Authorisation Conditioned to Contract Manpower Head; Expenditure • , , Expenditure Liability* Ceiling

(1,000 .; (1,000 (1,000 shekalim). shekalim) shekalim)

40 Ministry of Transport 2,264,000 415,375 890.5 41 Contribution to Railways Budget 450,000 ... : 42 Grants-in-Aid and Subsidies for Transport. 1,960,000 5,345,000 43. Surveys Division 315,000 375.0 44 Subsidy for Credits 147,992,000 45 Payment of Interest 604,000,000 Reserves 98,325,000 . . . • 138.0 47 General Reserve 98,325,000 , 138.0

Part B : Development Budget and Capital Account 913,000,000 82,837,309 Development Budget 182,586,000 82,837,309 INVESTMENTS IN GOVERNMENT AND ADMINISTRATION 3,116,000 10,000 5.1 Government Buildings , , 770,000 10,000 1,300,000 52 Police and Prisons 2,233,000 1,106,000 53 Law Courts 113,000 57 Local Authorities 4,625,000 6,776,000! : 2,180,000 Investments in Social and ;

׳ . Community Services 66,416,000 62,942,309 60 Education 3,524,000 1,066,309 8,347,768 61• Higher Education 1,409,000 t ׳ Religion 433,000 63 64 Labour and Social Affairs 1,210,000 220,000 67 Health 5,000,000 1,656,000 6,821,500 70 Housing 56,840,000 60,000,000 146,200,000 Investments in Branches of the Economy 108,429,000 13,109,000 •72 Agriculture 15,000,000 92,000 18,021,000 73 Water Projects 7,170,000 150,000 2,000,000 74 National Council for Research and Development 411,000 624,000

326 Revenue- Authorisation Conditioned to Contract Manpower Head Expenditure Expenditure Liability* Ceiling

(1,000 (1,000 (1,000 shekalim) shekalim) shekalim)

75 Development of Sources of Energy 6,485,000 11,533,000 7,020,000 76 Development of Industry 56,663,000 262,000 59,900,000 78 Tourism 4,830,000 10,000 4,224,000 79 Transport 3,556,000 3 i 8,000 4,244,000 80 Roads 3,680,000 120,000 81 Communications 5,764,000 83 Various Enterprises 4,870,000 210,000 84 Payment of Debts 706,000,000 85 Budgetary Funds for Short-Term Financing 530,000 87 Reserves for Development Expenditure 23,884,000

PartC: Repayment of Debts to Bank of Israel 980,000,000 100 Interest to, Bank of Israel 330,000,000 Principal to Bank of Israel 650,000,000

327 FORECAST OF RECEIPTS AND LOANS FOR THE FINANCIAL YEAR 1984

Forecast of Revenue for Financial Year 1984

(1,000 shekalim)

GRAND TOTAL 4,360,000,000

Part A: Ordinary Receipts 2,467,000,000 Part B: Receipts from Loans and Capital Account 913,000,000 980,000,000 ׳ '.•'•׳' PartC: Receipts from Bank of Israel Part A: Ordinary Receipts ' 2,467,000,000 Taxes and Compulsory Payments' , 1,607,260,000 Income and Property Taxes 882^60,000 ׳ 001 Income Tax ' - 11 :731,370,000 002 . Value-Added Tax from Non-Profit Organisations and Financial Sector 45,930,000 003 Appreciation Tax 9,960,000 14,940,000 < '•• ״ , Acquisition Tax .004 005 Property Tax 5,000,000 007 Employers' Tax 48,130,000 008 Charge on Securities 1 • • 27,630,000 Taxes on Expenditure 724¿00,000 87,860,000 ־ Customs Duty and Import Charge 7 011 012 Value-Added Tax (including defence imports) 363,160,000 013 Purchase Tax 144,840,000 015 Excise 14,070,000 018 Fuel Tax 37,900,000 019 Foreign Travel Tax . 7,780,000 020 Stamp Duty 8,820,000 021 Foreign Currency Charge 17,220,000 024 Vehicle Fees 8,687,000 025 Other Licensing Fees 6,493,000 026 Import Deposits 27,470,000 Transferred Revenue 35,740,000 032 To Local Authorities Direct 26,674,000 1) Property Rate Substitute (4,828 p. ct.) 13,206,000 2) Vehicle Fees (21 p. ct.) 1,824,000 3) Land Appreciation Tax (60 p. ct.) 5,976,000 4) Acquisition Tax (1/3) 4,975,000

328 Forecast of Revenue for Financial Year 1984

(1,000 shekalim) 5) Welfare and Recreation Charge 693,000 033 By Way of General Grant-in-Aid (Ministry of the Interior) 9,066,000 1) Purchase Tax (5 p. ct.) 7,242,000 2) Vehicle Fees (21 p. ct.) 1,824,000 Interest and Profits 63,637,00Q 035 Collection of Interest 48,600,000 35300d״,Interest in Foreign Currency l 036 Interest from Economic Units 57,000 037 Interest from Business Enterprises 2,999,000 038 Interest from Government Companies 10,628,000 Royalties 9,376,000 042 Royalties from Business Enterprises 2,201,000 043 Royalties from Natural Resources 675,000 044 Royalties from Communications Company 6,500,000 Sundry Receipts 8,200,000 046 Repayments o/a Budgets of Earlier Years 2,344,000 047 Revenue from Various Services 5,856,000 Transfer from Part B 778,527,000 Part B : Receipts from Loans and Capital Account 913,000,000 Repayment of Investments and

Government Loans 18,023,000 s 051 Collection of Principal 8,100,000 Principal in Foreign Currency 1,312,000 052 Depreciation, Economic Units 284,000 054 Depreciation, Business Enterprises 344,000 056 Depreciation, Government Companies 43,000 063 Revenue from Israel Lands Administration 7,940,000 Allocations for Pensions and Compensation 4,731,000 071 Allocations by Economic Units 1,953,000 072 Allocations by Business Enterprises 2,778,000 Internal Loans 798,045,000 081 Loan from National Insurance Institute 198,045,000 082 Revenue from Emissions and Deposits 600,000,000 Foreign Loans and Grants 620,005,000 900 Independence and Development Loan 68,640,000 901 Less Expenses of Flotation 5,491,000

329 Forecast of Revenue for Financial Year 1984

(1,000 shekalim)

Loans and Grants from the U.S.A. 902 Defence 240,800,000 Ramon Deployment Credit 25,740,000 904 Civilian Aid 244,529,000 906 Loan from Germany 11,467,000 908 Other Loans 34,320,000 Advance Payments from Bank of Israel 250,723,000 093 Advance Payment to Finance Expenditure 250,723,000 Transfer to Part A -778,527,000

PartC: RECEIPTS FROM BANK OF ISRAEL 980,000,000 Profits of Bank of Israel 100,000,000 Interest from Bank of Israel 1,920,000 Advance Payment to Finance Debt to Bank of Israel 878,080,000 2. TOTAL ADVANCE PAYMENTS FROM BANK OF ISRAEL 1,128,803,000 Advance Payment to Finance Expenditure 250,723,000 Advance Payment to Finance Debt to Bank of Israel 878,080,000

330 BUSINESS ENTERPRISES BUDGET FOR THE FINANCIAL YEAR 1984

Authorisation to Manpower Contract Liability Ceiling

1,000 1,000 shekalim shekalim

Part One: REVENUE 167,531,620 89 Treasury Enterprises 2,192,620 90 Housing Enterprises 33,926,000 91 Productivity Institute 908,000 92 Educational Equipment Institute 221,000 93 Railways 5,558,000 95 Jaffa and Hadera Ports 780,000 96 Ministry of Communications 15,746,000 97 Government Trading Accounts 86,200,000 98 Israel Lands Administration 22,000,000

Part Two: EXPENDITURE 167,531,620 7,448.5 89 Treasury Enterprises 2,192,620 330.0 90 Housing Enterprises 33,926,000 54,620,000 91 Productivity Institute 908,000 201.0 92 Educational Equipment Institute 221,000 44.0 93 Railways 5,558,000 1,637.0 95 Jaffa and Hadera Ports 780,000 6.0 96 Ministry of Communications 15,746,000 1,104,000 4,700.0 97 Government Trading Accounts 86,200,000 88,326,200 98 Israel Lands Administration 22,000,000 500,000 530.5

YITZCHAK SHAMIR YIGAL COHEN-ORGAD Prime Minister Minister of Finance CHAIM HERZOG * President of the State

331 INDEX OF LAWS IN THE ORDER OF THE DATES OF THEIR ADOPTION BY THE KNESSET

Title Date of Adoption

Emergency Regulations (Protection of Educational 7th Tishri, 5744 Institutions) (Continuance in Force) Law, (14th September, 1983) 5744-1983

Jewish Religious Services (Amendment No. 5) Law, 7th Tishri, 5744 5744-1983 (14th September, 1983)

Local Authorities (Elections) (Temporary Provisions) 7th Tishri, 5744 Law, 5744-1983 (14th September, 1983)

Local Authorities (Elections) (Temporary Provisions) 7th Tishri, 5744 (No. 2) Law, 5744-1983 (14th September, 1983)

Local Authorities (Election and Tenure of Head and 7th Tishri, 5744 Deputy Heads) (Temporary Provisions) Law, (14th September, 1983) 5744-1983

Local Authorities (Election of Head and Deputy 7th Tishri, 5744 Heads) (Amendment No. 5) Law, 5744-1983 (14th September, 1983)

Elections (Modes of Propaganda) (Temporary 7th Tishri, 5744 Provisions) Law, 5744-1983 (14th September, 1983)

Emergency Regulations (Trial of Offences Committed 19th Cheshvan, 5744 in Lebanon by Visitors from Israel) (26th October, 1983) (Extension of Validity) (Amendment No. 3) Law, 5744-1983

Land (Amendment No. 9) Law, 5744-1983 15th Kislev, 5744 (21st November, 1983)

Income Tax Concessions (Investment in Securities) 22nd Kislev, 5744 (Consideration Earmarked for Scientific Research) (28th November, 1983) Law, 5744-1983

National Insurance (Income from Agriculture) 30th Kislev, 5744 (Temporary Provisions) Law, 5744-1983 (6lh December, 1983)

Plant Breeders' Rights (Amendment) Law, 5744-1983 30th Kislev, 5744 (6th December, 1983)

332 Title Date of Adoption

Emergency Regulations (Registration and Mobilisa• 30th Kislev, 5744 tion of Equipment) (Extension of Validity) Law, 5744-1983 (6th December, 1983)

Emergency Regulations (Holding Detainees from 7th Tevet, 5744 Lebanon in Detention in Israel) (Extension of (13th December, 1983) Validity) Law, 5744-1983

Traffic Ordinance (Amendment No. 17) Law, 5744-1983 7th Tevet, 5744 (13th December, 1983)

Emergency Regulations (Compulsory Payments) 21st Tevet, 5744 (Extension of Validity) Law, 5744-1983 (27th December, 1983)

Work Safety Ordinance (Amendment No. 4) Law, 21st Tevet, 5744 5744-1983 (27th December, 1983)

State Comptroller (Amendment No. 12) Law, 5744-1983 22nd Tevet, 5744 (28th December, 1983)

Emergency Regulations (Judea ana Samaria, Gaza 27th Tevet, 5744 Region, Sinai and Southern Sinai - Criminal (2nd January, 1984) Jurisdiction and Legal Assistance) (Amendment and Extension of Validity) Law, 5744-1984

Income Tax (Taxation under Conditions of Inflation) 5th Shevat, 5744 (Temporary Provisions and Amendment) Law, (9th January, 1984) 5744-1984

National Insurance (Amendment No. 51) Law, 5744-1984 26th Shevat, 5744 (30th January, 1984)

National Insurance (Amendment No. 52) Law, 5744-1984 26th Shevat, 5744 (30th January, 1984)

Municipalities Ordinance (Amendment No. 30) Law, 26th Shevat, 5744 5744-1984 (30th January, 1984)

Dayanim (Amendment No. 8) Law, 5744-1984 27th Shevat, 5744 (31st January, 1984)

Adjudication of Interest and Linkage (Amendment No. 4) 27th Shevat, 5744 Law, 5744-1984 (31st January, 1984)

333 Title Date of Adoption

Rules of Evidence (Warning of Witnesses and 3rd AdarAlef, 5744 Abolition of Oath) (Amendment) Law, 5744-1984 (6th February, 1984)

National Insurance (Amendment No. 53) Law, 5744-1984 4th Adar Alef, 5744 (7th February, 1984)

Income Tax Ordinance (Amendment No. 59) Law, 11th Adar Alef, 5744 5744-1984 (14th February, 1984)

Pension Points Taxation (Temporary Provisions) Law, 11th Adar Alef, 5744 5744-1984 (14th February, 1984)

Impost on High-Income Earners (Temporary Provisions) 11th Adar Alef, 5744 Law, 5744-1984 (14th February, 1984)

Pensions (Compensation for Delay in Payment) Law, 11th Adar Alef, 5744 5744-1984 (14th February, 1984)

Short-Term Loan Law, 5744-1984 11th Adar Alef, 5744 (14th February, 1984)

Insurance Contract (Amendment) Law, 5744-1984 11th Adar Alef, 5744 (14th February, 1984)

Emergency Regulations (Trial of Offences Committed 12th Adar Alef, 5744 in Lebanon by Visitors from Israel) (Extension of (15th February, 1984) Validity) (Amendment No. 4) Law, 5744-1984

Encouragement of Saving, Income Tax Reductions and 18th Adar Alef, 5744 Guarantee of Loans (Amendment No. 5) Law, (21st February, 1984) 5744-1984

25th Adar Alef, 5744 Basic Law: Judicature (28th February, 1984)

25th Adar Alef, 5744 Judicature (Transitional Provisions) Law, 5744-1984 (28th February, 1984)

26th Adar Alef, 5744 Defence Service (Amendment No. 16) Law, 5744-1984 (29th February, 1984)

Parallel Tax (Amendment No. 6) Law, 5744-1984 2nd Adar Bet, 5744 (6th March, 1984)

334 Title Date of Adoption

Aerodromes• Authority (Amendment) Law, 5744-1984 2nd Adar Bet, 5744 (6th March, 1984)

Acquisition for Public Purposes (Amendment of 8th Adar Bet, 5744 Provisions) (Amendment No. 5) Law, 5744-1984 (12th March, 1984)

Prisons Ordinance (Amendment No. 7) Law, 5744-1984 10th Adar Bet, 5744 (14th March, 1984)

Foreign Travel Charge (Amendment) Law, 5744-1984 17th Adar Bet, 5744 (21st March, 1984)

Public Health Ordinance (Amendment No. 9) Law, 17th Adar Bet, 5744 5744-1984 (21st March, 1984)

Obsolete Legislation (Repeal) Law, 5744-1984 23rd Adar Bet, 5744 (27th March, 1984)

Defamation (Prohibition) (Amendment No. 3) Law, 23rd Adar Bet, 5744 5744-1984 (27th March, 1984).

Encouragement of Industrial Research and Development 24th Adar Bet, 5744 Law, 5744-1984 (28th March, 1984)

Encouragement of Capital Investments (Amendment No. 23) 24th Adar Bet, 5744 Law, 5744-1984 (28th March, 1984)

Income Tax (Encouragement of Letting of Apartments) 24th Adar Bet, 5744 (Temporary Provisions and Amendment of Laws) (28th March, 1984) (Amendment No. 2) Law, 5744-1984

Income Tax (Taxation under Conditions of Inflation) 24th Adar Bet, 5744 (Amendment No. 3) Law, 5744-1984 (28th March, 1984)

State Loan (Amendment No. 3) Law, 5744-1984 24th Adar Bet, 5744 (28th March, 1984)

State Comptroller (Amendment No. 13) Law, 5744-1984 24th Adar Bet, 5744 (28th March, 1984)

Budget (Financial Year 1983) (No. 2) Law, 5744-1984 24th Adar Bet, 5744 (28th March, 1984)

Budget (Financial Year 1984) Law, 5744-1984 24th Adar Bet, 5744 (28th March, 1984)

335- Title Date of Adoption

Dissolution of Tenth Knesset Law, 5744-1984 2nd Nisan, 5744 (4th April, 1984)

Eleventh Knesset Elections (Temporary Provisions) 2nd Nisan, 5744 Law, 5.744-1984 (4th April, 1984)

Invalids (Pensions and Rehabilitation) (Amendment 13th Iyar, 5744 No. 13) Law, 5744-1984 (15th May, 1984)

Maintenance of Cleanliness Law, 5744-1984 27th Iyar, 5744 (29th May, 1984)

Planning and Building (Amendment No. 21) Law, 27th Iyar, 5744 5744-1984 29th May, 1984)

Emergency Regulations (Protection of Educational 4th Sivan, 5744 Institutions) (Extension of Validity) Law, 5744-1984 (4th June, 1984)

Securities (Amendment No. 7) Law, 5744-1984 11th Sivan, 5744 (11th June, 1984)

Customs and Excise Duties (Variation of Tariff) 12th Sivan, 5744 (Amendment No. 4) Law, 5744-1984 (12th June, 1984)

Income Tax Ordinance (Amendment No. 63) Law, 12th Sivan, 5744 5744-1984 (12th June, 1984)

Emergency Regulations (Compulsory Payments) 12th Sivan, 5744 (Extension of Validity) (No. 2) Law, 5744-1984 (12th June, 1984)

Courts (Amendment No. 19) Law, 5744-1984 13th Sivan, 5744 (13th June, 1984)

Judges (Amendment No. 10) Law, 5744-1984 13th Sivan, 5744 (13th June, 1984)

Registrars Ordinance (Amendment No. 3) Law, 13th Sivan, 5744 5744-1984 (13th June, 1984)

Penal (Amendment No. 19) Law, 5744-1984 13th Sivan, 5744 (13th June, 1984)

Repeal olMejelle Law, 5744-1984 13th Sivan, 5744 (13th June, 1984)

336 Title Date of Adoption

Performers' Rights Law, 5744-1984 13th Sivan, 5744 (13th June, 1984) Compulsory Education (Amendment No. 16) Law, 13th Sivan, 5744 5744-1984 (13th June, 1984) Income Tax Ordinance (Amendment No. 64) Law, 13th Sivan, 5744 5744-1984 (13th June, 1984) Defence Loan (Voluntary Extension) Law, 5744-1984 13th Sivan, 5744 (13th June, 1984) Eleventh Knesset Elections (Temporary Provisions) 13th Sivan, 5744 (Amendment) Law, 5744-1984 (13th June, 1984) Telecommunications (Amendment No. 2) Law, 5744-1984 13th Sivan, 5744 (13th June, 1984) Use of Hypnosis Law, 5744-1984 13th Sivan, 5744 (13th June, 1984) Investments by Public in Financial Assets in 2nd Tammuz, 5744 Israel (Protection) Law, 5744-1984 (2nd July, 1984) Land Appreciation Tax (Amendment No. 15) Law, 2nd Tammuz, 5744 5744-1984 (2nd July, 1984) Income Tax Ordinance (Amendment No. 62) Law, 2nd Tammuz, 5744 5744-1984 (2nd July, 1984) Income Tax Ordinance (Amendment No. 65) (Amendment) Law, 2nd Tammuz, 5744 5744-1984 (2nd July, 1984) Discharged Soldiers Law, 5744-1984 2nd Tammuz, 5744 (2nd July, 1984) Local Authorities (Interest and Linkage Differentials 2nd Tammuz, 5744 on Compulsory Payments) (Amendment) (2nd July, 1984) Law, 5744-1984 Basic Law: The Government (Amendment No. 4) Law, 16th Elul, 5744 5744-1984 (13th September, 1984)

CONSOLIDATED VERSION Date of Publication

Courts Law (Consolidated Version), 5744-1984 3rd Elul, 5744 (31st August, 1984)

337 ALPHABETICAL INDEX OF LAWS

Title Page

Acquisition for Public Purposes (Amendment of Provisions) (Amendment No. 5) Law, 5744-1984 118 Adjudication of Interest and Linkage (Amendment No. 4) Law, 5744-1984 64 Aerodromes Authority (Amendment) Law, 5744-1984 117

Basic Law: Judicature 101 Basic Law: The Government (Amendment No. 4) Law, 5744-1984 303 Budget (Financial Year 1983) (No. 2) Law, 5744-1984 304 Budget (Financial Year 1984) Law, 5744-1984 310

Compulsory Education (Amendment No. 16) Law, 5744-1984 218 Courts (Amendment No. 19) Law, 5744-1984 200 Courts Law (Consolidated Version), 5744-1984 271 Customs and Excise Duties (Variation of Tariff) (Amendment No. 4) Law, 5744-1984 219

Dayanim (Amendment No. 8) Law, 5744-1984 63 Defamation (Prohibition) (Amendment No. 3) Law, 5744-1984 176 Defence Loan (Voluntary Extension) Law, 5744-1984 225 Defence Service (Amendment No. 16) Law, 5744-1984 Ill Discharged Soldiers Law, 5744-1984 263 Dissolution of Tenth Knesset Law, 5744-1984 179

338 Title Page

Elections (Modes of Propaganda) (Temporary Provisions) Law, 5744-1983 7 Eleventh Knesset Elections (Temporary Provisions) (Amendment) Law, 5744-1984 229 Eleventh Knesset Elections (Temporary Provisions) Law, 5744-1984 180 Emergency Regulations (Compulsory Payments) (Extension of Validity) Law, 5744-1983 41 Emergency Regulations (Compulsory Payments) (Extension of Validity) (No. 2) Law, 5744-1984 232 Emergency Regulations (Holding Detainees From Lebanon in Detention in Israel (Extension of Validity) Law, 5744-1983 33 Emergency Regulations (Judea and Samaria, Gaza Region, Sinai and Southern Sinai - Criminal Jurisdiction and Legal Assistance) (Amendment and Extension of Validity) Law, 5744-1984 43 Emergency Regulations (Protection of Educational Institutions) (Continuance in Force) Law, 5744-1983 3 Emergency Regulations (Protection of Educational Institutions) (Extension of Validity) Law, 5744-1984 197 Emergency Regulations (Registration and Mobilisation of Equipment) (Extension of Validity) Law, 5744-1983 32 Emergency Regulations (Trial of Offences Committed in Lebanon by Visitors from Israel) (Extension of Validity) (Amendment No. 3) Law, 5744-1983 14 Emergency Regulations (Trial of Offences Committed in Lebanon by Visitors from Israel) (Extension of Validity) (Amendment No. 4) Law, 5744-1984 99 Encouragement of Capital Investments (Amendment No. 23) Law, 5744-1984 149 Encouragement of Industrial Research and Development Law, 5744-1984 130 Encouragement of Saving, Income Tax Reductions and Guarantee of Loans (Amendment No. 5) Law, 5744-1984 , 100 Title Page

Foreign Travel Charge Law (Amendment) Law, 5744-1984 120

Impost on High-Income Earners (Temporary Provisions) Law, 5744-1984 83 Income Tax Concessions (Investment in Securities) (Consideration Earmarked for Scientific Research) Law, 5744-1983 16 Income Tax (Encouragement of Letting of Apartments) (Temporary Provisions and Amendment of Laws) (Amendment No. 2) Law, 5744-1984 147 Income Tax Ordinance (Amendment No. 59) Law, 5744-1984 70 Income Tax Ordinance (Amendment No. 62) Law, 5744-1984 258 Income Tax Ordinance (Amendment No. 63) Law, 5744-1984 220 Income Tax Ordinance (Amendment No. 64) Law, 5744-1984 221 Income Tax Ordinance (Amendment No. 65) (Amendment) Law, 5744--1984 259 Income Tax (Taxation under Conditions of Inflation) (Temporary Provisions and Amendment) Law, 5744-1984 47 Income Tax (Taxation under Conditions of Inflation) (Amendment No. 3) Law, 5744-1984 148 Insurance Contract (Amendment) Law, 5744-1984 96 Invalids (Pensions and Rehabilitation) (Amendment No. 13) Law, 5744-1984 188 Investments by Public in Financial Assets in Israel (Protection) Law,5744-1984 : 244

Jewish Religious Services (Amendment No. 5) Law, 5744-1983 4 Judges (Amendment No. 10) Law, 5744-1984 206 Judicature (Transitional Provisions) Law, 5744-1984 107

340 Title Page

Land (Amendment No. 9) Law, 5744-1983 15 Land Appreciation Tax (Amendment No. 15) Law, 5744-1984 246 Local Authorities (Election and Tenure of Head and Deputy Heads) (Amendment No. 5) Law, 5744-1983 11 Local Authorities (Election and Tenure of Head and Deputy Heads) (Temporary Provisions) Law, 5744-1983 10 Local Authorities (Elections) (Temporary Provisions) Law, 5744-1983 5 Local Authorities (Elections) (Temporary Provisions No. 2) Law, 5744-1983 \ 8 Local Authorities (Interest and Linkage Differentials on Compulsory Payments) (Amendment) Law, 5744-1984 267

Maintenance of Cleanliness Law, 5744-1984 , 190 Municipalities Ordinance (Amendment No. 30) Law, 5744-1984 '.• 61

National Insurance (Amendment No. 51) Law, 5744-1984 51 National Insurance (Amendment No. 52) Law, 5744-1984 58 National Insurance (Amendment No. 53) Law, 5744-1984 67 National Insurance (Income from Agriculture) (Temporary Provisions) Law, 5744-1983 28

Obsolete Legislation (Repeal) Law, 5744-1984 125

341 Title Page

Parallel Tax (Amendment No. 6) 5744-1984 112 Penal (Amendment No. 19) Law, 5744-1984 211 Pension Points Taxation (Temporary Provisions) Law, 5744-1984 85 Pensions (Compensation for Delay in Payment) Law, 5744-1984 88 Performers' Rights Law, 5744-1984 213 Planning and Building (Amendment No. 21) Law, 5744-1984 198 Plant Breeders' Rights (Amendment) Law, 5744-1983 30 Prisons Ordinance (Amendment No. 7) Law, 5744-1984 119 Public Health Ordinance (Amendment No. 9) Law, 5744-1984 123

Repeal of Mejelle Law, 5744-1984 212 Registrars Ordinance (Amendment No. 3) Law, 5744-1984 209 Rules of Evidence Amendment (Warning of Witnesses and Abolition of Oath) (Amendment) Law, 5744-1984 66

Securities (Amendment No. 7) Law, 5744-1984 228 Short-Term Loan Law, 5744-1984... 93 State Comptroller (Amendment No. 12) Law, 5744-1984 46 State Comptroller (Amendment No. 13) Law, 5744-1984 178 State Loan (Amendment No. 3) Law, 5744-1984 175

Telecommunications (Amendment No. 2) Law, 5744-1984 231 Traffic Ordinance (Amendment No. 17) Law, 5744-1984 36

342 Title Page

Use of Hypnosis Law, 5744-1984 233

Work Safety Ordinance (Amendment No. 4) Law, 5744-1984 42

343 משיד המשפטים מםמך זה הינו העתק שנסרק בשלמותו ביום ובשעה המצוינים . בסריקה ממוחשבת מהימנה מהמסמך המצוי בתיק, בהתאם לנוהל הבדיקות במשרד המשפטים. על החתום « 9ן 00>0420.0ו40מ3^22 ~~ * משרד המשפטים (התימה מוסדית).