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Laws of the State of Israel

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Laws of the State of Israel LAWS OF THE STATE OF ISRAEL VOL 16 5722—1961/62 FROM 30th TISHRI, 5722 — 10.10.61 TO 8th AV, 5722 — 8.8.62 Authorised Translation from the Hebrew Prepared at the Ministry of Justice PUBLISHED BY THE GOVERNMENT PRINTER LAWS OF THE STATE OF ISRAEL VOL. 16 5722—1961/62 FROM 30th TISHRI, 5722 — 10.10.61 TO 8th AV, 5722 — 8.8.62 Authorised Translation from the Hebrew Prepared at the Ministry of Justice PUBLISHED BY THE GOVERNMENT PRINTER CONTENTS Page Laws ••< *•• ••• ••• ,•••< • • •i !••« !• • •. 3 Budget Laws 122 Index of Laws in the Order of the Dates of Their Adoption by the Knesset 146 Alphabetical Index of Laws 149 Index of Budget Laws 151 EXPLANATIONS l.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-Chukkim — 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 Dinei Medinat Yisrael) Hebrew text of legislation enacted (Nusach Chadash) before the establishment of the State P.G. (Palestine Gazette) — The Official Gazette of the Man• datory Government Laws of Palestine — The 1934 revised edition of Pales• tine legislation (Drayton) LSI Laws of the State of Israel LAWS (No. 1) ABSORPTION LOAN LAW, 5722—1961* 1. In this Law — (1) every term shall have the same meaning as it has in the Income Tax Ordinance1) (hereinafter referred to as "the Ordinance"); (2) "the determining tax" means the tax to which a person is liable in respect of the year 1961, including the tax on a capital profit, but not including — (a) tax on income in respect of which a tax reduction is granted under sections 11 and 13 of the Encouragement of Capital Investments Law, 5710—19502), and sections 46, 47 and 50 of the Encouragement of Capital Investments Law, 5719--19533); (b) tax on income from interest or dividend in respect of which a reduction is granted under any law; (c) tax to which a non-resident is liable on his income from the sources specified in paragraphs (4) and (5) of section 2 of the Ordinance : Provided that in the case of an individual exempt from sub• mitting a return under section 134 of the Ordinance, the amount of tax deducted from his income under section 164 of the Ordinance shall be regarded as the determining tax so long as no other amount has been determined under an assessment made in pursuance of an application submitted by the 3rd Tishri, 5723 (1st October, 1962). 2. A person shall be liable to make a loan to the State, to be Imposition devoted to the absorption of immigrants (such a loan being hereinafter a"d rate referred to as "the loan"), at the rate of 6 per cent of the determining 0 oan' tax. 3. Where the amount of the loan to which a person is liable does Exemption, not exceed 10 pounds, such a person shall be exempt from the loan : Provided that a husband and wife the tax on whose income is calcu• lated separately under section 66 of the Ordinance shall not be * Passed by the Knesset on the 30th Tishri, 5722 (10th October, 1961), and published in Sefer Ha-Chukkim No. 351 of the 6th Cheshvan, 5722 (16th October, 1961), p. 2; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 477 of 5722, p. 2. 3) Dinei Medinat Israel (Nusach Chadash) No. 6, p. 120. 2) Sefer Ha-Chukkim No. 41 of 5710, p. 129 ; LSI vol. IV, p. 93. ») Sefer Ha-Chukkim No. 293 of 5719, p. 234; LSI vol. XIII, p. 258. exempt as aforesaid unless the amount of the loan to which both of them together are liable does not exceed ten pounds. Repayment 4. The loan shall be repaid in ten equal annual instalments, begin• of loan. ning with the tax year 1967 : Provided that where a person has not completed the loan by the 4th Tevet, 5713 (31st December, 1962), the Minister of Finance may prescribe by regulations other times for the repayment of the whole or any part of the loan, in such instal• ments and on such conditions as he shall prescribe; for the purposes of this section and of sections 6 and 7, "has completed the loan" means "has paid the loan or has had the loan deducted from his income as provided in section 8". Loan 5. (a) Loan certificates shall be issued in respect of the amount of certificates. the loan. The Minister of Finance shall lay down the provisions and conditions applicable to the certificates, including those applicable to their issue, negotiability and redemption. (b) The certificates shall be only for an amount of pounds divis-. ible by five without remainder. Surpluses shall be subject to the following provisions : (1) Where the amount of the loan to which a person is liable exceed 20 pounds, a surplus exceeding two-and-a-half pounds shall be rounded off to five pounds, and a surplus not ex• ceeding two-and-a-half pounds shall be disregarded, without the amount of the loan to which the person is liable being altered thereby; (2) where the amount of the loan to which a person is liable does not exceed 20 pounds, the surplus shall be repaid in such manner and at such time as the Minister of Finance shall by regulations prescribe. Loan linked 6. (a) In this section — to index. (1) "cost-of-living index" has the same meaning as in the Defence Loan Law, 5717—19561); (2) "basic index", in the case of a person who has completed the Ion by the 4th Tevet, 5723 (31st December, 1962), means the cost-of-living index published to December of that year, and in the case of a person who has not completed the loan by the said date, means the cost-of-living index published to to December of the year in which he completes the loan ; (3) "new index" means the index published to December last preceding the time for the repayment of a particular part of the loan. (b) The loan shall be linked to the cost-of-living index. If at the time of the repayment of a particular part of the loan it appears that the new index exceeds the basic index, such part shall be repaid in• creased in proportion to the amount of the excess. i) Seier Ha-Chukkim No. 210 of 5717, p. 8 ; LSI vol. XI, p. 5. 4 7. (a) The loan shall bear unlinked interest at the rate of 4 per Loan to bear cent per annum accruing, in the case of a person who has completed interest. the loan by the 4th Tevet, 5763 (31st December, 1962), from the 5th Tevet, 5763 (1st January, 1963), and in the case of a person who has not completed the loan by the said date, from the 1st of January of the year following the year in which he completes the loan. (b) The interest shall be exempt from tax, except the tax deduct- able under section 161 of the Ordinance. 8. (a) A person liable to make advance payments under section Payments on account 176 of the Ordinance shall pay, on account of the loan, an amount of loan. equal to lx/z per cent of the aggregate amount of the advance payments to which he is liable in respect of the tax year 1961, in two equal in• stalments, one on the 3rd Tevet, 5722 (10th December, 1961) and the other on the 4th Adar Bet, 5722 (10th March, 1962). (b) A person liable to make advance payments under section 175 of the Ordinance shall pay, on account of the loan, on the 5th Shevat, x 5722 (10th January, 1961), an amount equal to l /2 per cent of the aggregate amount of the advance payments to which he is liable in respect of the tax year 1961. (c) Every person responsible for the payment of work income, or income as referred to in section 2(5) of the Ordinance, in respect of the months October, 1961, to March, 1962, shall deduct therefrom, together with the tax which he is required to deduct under section 164 of the Ordinance, an additional amount on account of the loan, at the rate of 12 per cent of the amount of the tax which he is required to deduct. 9. Save as otherwise provided in this Law, the provisions of the Applicability Ordinance shall apply to the loan as if it were part of the tax. of Ordinance. 10. The Minister of Finance is charged with the implementation of Implementation this Law and may make regulations as to any matter relating to such and regulations. implementation. However, regulations under section 4 or 5 shall require the approval of the Finance Committee of the Knesset. 11. There are hereby repealed — Repeal. (1) the Absorption Loan Law, 5719—19591); (2) the Absorption Loan (Temporary Provisions) Law, 5719— 19592). DAVID BEN-GURION LEVI ESHKOL Prime Minister Minister of Finance YlTZCHAK BEN-ZVI President of the State i) Sefer Ha-Chukkim No. 280 of 5719, p. 103 ; LSI vol. XIII, p. 109. «) Sefer Ha-Chukkim No. 284 of 5719, p. 140; LSI vol. XIII, p. 150. (No. 2) STATE COMPTROLLER (AMENDMENT) LAW, 5722—1961" Addition 1. The following section shall be inserted after section 4 of the of State Comptroller Law, 5718—1958 (Consolidated Version)1): section 4A.
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