LAWS OF THE STATE OF ISRAEL
Vol. 30
5736 — 1975/76
FROM 16th CHESHVAN, 5736—21.10.75 to 4th ELUL, 5736—30.8.76
Authorised Translation from the Hebrew Prepared at the Ministry of Justice
Published by the Government Printer Jerusalem LAWS OF THE STATE OF ISRAEL Vol. 30
5736 — 1975/76
FROM 16th CHESHVAN, 5736—21.10.75 to 4th ELUL, 5736—30.8.76
Authorised Translation from the Hebrew Prepared at the Ministry of Justice
Published by the Government Printer Jerusalem CONTENTS
Page Laws ; 3 Budget Laws !.295 Index of Laws in the Order of the Dates of Their Adoption by the Knesset .....320 Alphabetical Index of Laws . 325
EXPLANATIONS I.R. {Iton Rishmi). — The OfficialGazette during the tenure of the Provisional Council of State Reshumot — The Official Gazette since the in• ception 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-Takkahot 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 be• {Nusach Chadash) fore the establishment of the State P.G. {Palestine Gazette) — The Official Gazette of the Mandatory Government Laws of Palestine — The 1934 revised edition of Palestine legislation (Drayton) LSI {Laws of the State of — The English translation of laws of Israel) which this volume forms part NV {Laws of the State of — An English edition of the revised text Israel {New Version)) of pre-State legislation (see above) LAWS (No. 1)
POSTAL BANK (AMENDMENT No. 3) LAW, 5736—1975*
1. In section 2 (b) of the Postal Bank Law, 5711—1951!) (hereinafter Amendment of section 2. referred to as "the principal Law"), the following paragraphs shall be added after paragraph (4): "(5) the receipt of promissory notes from holders of clearing accounts for collection; (6) any such services auxiliary to the services enumerated in paragraphs (1) to (5) as are made possible by the keeping of accounts by the Postal Bank, by the manner in which they are recorded and by the ways in which they are controlled (such auxiliary services hereinafter referred to as "auxiliary ser vices").". 2. In section 4 (a) of the principal Law, the words "The Chairman Amendment of shall be appointed for five years and may be re-appointed" shall be added section 4. at the end. 3. In section 5 (b) of the principal Law — Amendment of section 5. (1) paragraph (2) shall be replaced by the following paragraph: "(2) the Director-General of the Ministry of Communica tions or his representative;". .(2) the words "each of the six members shall be appointed for three years and may be re-appointed" shall be added at the end ׳ .(of paragraph (5 4. The following sections shall be inserted after section 6A of the Addition of sections 6B and principal Law: 6C. "Overdraft. 6B. (a) The Postal Bank may permit an overdraft on a clearing account (hereinafter referred to as an "overdraft") not exceeding 250 pounds if the holder of the account is also the holder of a savings account at the Postal Bank and the balance thereof at the time of.the overdraft, is not less than the amount of the overdraft. .
Passed by the Knesset on the 16th Cheshvan, 5736 (21st October, !975) and published in Sefer Ha-Chukkim No. 782 of the 25th Cheshvan, 5736 (30th October, 1975), p. 2; the Bill and an Explanatory Note were published in HatzcCot Chok No. 1114 of 5734, p. 158. Sefer Ha-Chukkim of 5711, p. 219 — LSI vol. V. p. 138; Sefer Ha-Chukkim of 5716, p. 85 — LSI vol. X, p. 84; Sefer Ha-Chukkim of 5718, p. 114 — LSI vol. XII, p. 133.
3 (b) So long as the overdraft has not been cov ered, no further overdraft on that clearing account shall be permitted. (c) The Minister of Communications may, with the approval of the Minister of Finance and the Fi nance Committee of the Knesset, vary, by regulations, the .maximum amount specified in subsection (a). Auxiliary 6C. (a) Every auxiliary service shall be put into ope services. ration with the approval of the Board, and notice of its being put into operation shall be published in Reshumot. (b) The Postal Bank may enter into an agree ment with every holder of an account who wishes to receive an auxiliary service. The agreement shall pre scribe the conditions for giving the service, including the charges therefor.". Amendment of 5. In section 20 (a) of the principal Law, the following paragraph shall section 20. be added after paragraph (5): "(6) the conditions for permitting an overdraft, the times for covering it and the payment of interest thereon.". Transitional 6. Notwithstanding the provisions of sections 2 and 3 (2), the appoint provision. ment of the Chairman, and the appointment of the members of the Coun cil under section 5 (b) (5) of the principal Law, which were in force im mediately before the publication of this Law in Reshumot shall remain in force until the expiration of one year from the date of such publication.
YITZCHAK RABIN AHARON UZAN Prime Minister Minister of Communications EFRAYIM KATZIR President of the State
(No. 2) DEFENCE (FINANCE) REGULATIONS (EXTENSION OF VALIDITY) LAW, 5736—1975*
Extension of 1. The validity of the Defence (Finance) Regulations, 1941!), is hereby validity. extended until the 10th Tevet, 5737 (31st December, 1976).
* Passed by the Knesset on the 16th Cheshvan, 5736 (21st October, 1975) and 5736th׳ (published in Sefer Ha-Chukkim No. 782 of the 25th Cheshvan, 30 October, 1975), p. 2; the Bill and an Explanatory Note were published in Hatza'ot ChokMo. 1199 of 5735, p. 425. i) P.G. of 1941, Suppl. II, p. 1647 (English Edition); Sefer Ha-Chukkim of 5734, p. 89 —LSIvol. XXVIII, p. 90.
4 2. This Law shall come into force on the 28th Tevet, 5736 (1st January, Commencement. 1976).
YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State
(No. 3) COUNCIL FOR HIGHER EDUCATION (AMENDMENT No. 5) LAW, 5736—1975*
1. In the Council of Higher Education Law, 5718—1958!), section 5 Amendment of shall be remarked as section 5(a) and the following subsection shall be section 5- added thereafter: "(b) Where a member of the Council is unable actually to serve for a specific period, the Minister of Education and Culture may propose to the President of the State to appoint a substitute for that member for that period.".
YITZCHAK RABIN AHARON YADLIN Prime Minister Minister of Education and Culture EFRAYIM KATZIR President of the State
* Passed by the Knesset on the 23rd Cheshvan, 5736 (28th October, 1975) and published in Sefer Ha-Chukkim No. 783 of the 2nd Kislev, 5736 (6th November, 1975), p. 6; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1209 of 5736, p. 42. 1) Sefer Ha-Chukkim of 5718, p. 191 — LSI vol. XII, p. 331; Sefer Ha-Chukkim of 5721, p. 31 — LSI vol. XV, p. 27; Sefer Ha-Chukkim of 5723, p. 65 — LSI vol. XVII, p. 78; Sefer Ha-Chukkim of 5732, p. 32 — LSI vol. XXVI, p. 23;Sefer Ha-Chukkim of 5735, p. 243 — LSI vol. XXIX, p. 319. (No. 4) STATE SERVICE (BENEFITS) (AMENDMENT No. 10) LAW, 5736—1975*
Amendment of ]. In section 100 of the State Service (Benefits) Law (Consolidated Version) 5730—1970!) (hereinafter referred to as "the principal Law")— (1) the subsection mark "(a)" shall be inserted after the section mark "100" and the words "or who entered the State Service after attaining the age of forty years" shall be deleted; (2) the following subsection shall be added after subsection (a): "(b) . In respect of an employee to whom subsection (a) does not apply, the Service Commissioner may, by notice in Reshumot, on conditions prescribed by the Government with the approval of the Labour Affairs Committee of the Knesset, direct that for the purpose of determining all or any of his rights under this Law the whole or part of his period of service shall be deemed to have been longer, by as much as the Gov ernment shall prescribe, than it actually was.".
Transitional 2. Conditions and tests prescribed by the Government or the Service provision. Commissioner, as the case may be, before the coming into force of this Law, for the exercise of the powers of the Service Commissioner under section 100 of the principal Law shall be treated as conditions prescribed under section 100 (b) of the principal Law, as enacted by this Law. .
YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State
*) Passed by the Knesset on the 14th Kislev, 5736 (18th November, 1975) and published in Sefer Ha-Chukkim No. 784 of the 23rd Kislev, 5736 (27th November, 1975), p. 10; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1201 of 5735, p. 429. 1) Sefer Ha-Chukkim of 5730, pp. 65 and 120 — LSI vol. XXIV, pp. 57 and 125; Sefer Ha-Chukkim of 5731, p. 107—LSI vol. XXV, p. 105; Sefer Ha-Chukkim of ׳ ;pp. 78, 80, 82,200 and 255— LSI vol. XXVII, pp. 73, 77, 78, 218 and 294 ,5733 Sefer Ha-Chukkim of 5735, pp. 128 and 238 — LSI vol. XXIX, pp. 158 and 318.
6 (No. 5) STATE SERVICE (BENEFITS) (AMENDMENT No. 11 AND TRANSITIONAL PROVISIONS) LAW, 5736—1975*
1. (a) In this Law, every term shall have the same meaning as it has Interpretation. in the State Service (Benefits) Law (Consolidated Version), 5730—19701) (hereinafter referred to as "the principal Law") and shall be construed as one with it. (b) Where this Law refers to the freezing at a particular date of a deduction made in consequence of capitalisation, the amount by which the pension is reduced in consequence of the capitalisation shall, from that date onwards, not exceed the amount by which the pension was reduced immediately before that date. 2. In section 109 (b) of the principal Law, paragraph (3) shall be re• Amendment of placed by the following paragraph: section 109. "(3) shall not enable the capitalisation of a pension which will become due to the person entitled after the lapse of six years from the date of the capitalisation;". 3. The following provisions shall apply to a person who permanently Transitional provisions capitalised part of his pension before the 19thTevet, 5728 (18th February, as to 1968): permanent (1) he shall be deemed to have capitalised such part from the date capitalisation. of the capitalisation for a period of ten years only or for a period ending on the day on which he completes his sixty-eighth year, whichever period ends later; (2) upon the expiration of the eighth year from the date of the capitalisation or with effect from the day on which he completes his sixty-eighth year, whichever is later, the deduction made in con• sequence of the capitalisation shall be frozen; (3) where 100 per cent invalidity has been determined for him under the principal Law, paragraphs (1) and (2) shall be read as if the words "his sixty-eighth year" or "his sixty-fifth year", as the case may be, were replaced by the words "his fifty-eighth year"; (4) where 60 per cent or more but less than 100 per cent invalidity has been determined for him as aforesaid, he shall be deemed to have capitalised the capitalised part for a period of eleven years only
* Passed by the Knesset on the 14th Kislev, 5736 (18th November, 1975) and published in Sefer Ha-Chukkim No. 784 of the 23rd Kislev, 5736 (27th November, 1975), p. 10; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1212 of 5736, p. 72. 1) Sefer Ha-Chukkim of 5730, pp. 65 and 120 — LSI vol. XXIV, pp. 57 and 125; Sefer Ha-Chukkim of 5731, p. 107 — LSI vol. XXV, p. 105; Sefer Ha-Chukkim of 5733, pp. 78, 80, 82, 200 and 255 — LSI vol. XXVII, pp. 73, 77, 78, 218 and 294; Sefer Ha-Chukkim of 5735, pp. 128 and 238 — LSI vol. XXIX. pp. 158 and 318 ; Sefer Ha-Chukkim of 5736, p. 10 — supra, p. 6.
1 or for a period ending on the day on which he completes his fifty- eighth year, whichever period ends later; (5) if paragraph (4) applies to him, the deduction made in con• sequence of capitalisation shall be frozen upon the expiration of the tenth year from the date of the capitalisation or with effect from the day on which he completes his fifty-eighth year, whichever is later; (6) paragraphs (4) and (5) shall not apply where the calculation under paragraphs (1) and (2) is more favourable to the person en• titled to the pension; (7) where the capitalised pension is due in consequence of retire• ment from service as a police officer or prison officer, this section shall be read as if the words "his sixty-eighth year", wherever occurring therein, were replaced by the words "his sixty-fifth year"; (8) section 2 of the State Service (Benefits) (Transitional Provis• ions) Law, 5731—1971!), shall no longer apply to a pension payable to the person entitled thereto from the 18th Tevet, 5735 (1 st January, 1975) unless the calculation thereunder is more favourable to him.
Transitional 4. (a) The following provisions shall apply to a person who before Sualisation10 the 1Sth Tevet' 5735 (lst January> 1975) capitalised part of his pension for ten years. for a period of ten years: (1) he shall be deemed to have capitalised such part from the date of the capitalisation for a period of eight years only or for a period ending on the day on which he completes his sixty-fifth year, whichever period ends later; (2) the deduction made in consequence of the capitalisation shall be frozen upon the expiration of the sixth year from the date of the capitalisation or with effect from the day on which he completed his sixty-fifth year, whichever is later; (3) where 100 per cent invalidity was determined for him under the principal Law shortly before his retirement, paragraphs (1) and (2) shall be read as if the words "his sixty-fifth year" were replaced by the words "his fifty-fifth year". (4) where 60 per cent or more but less •than 100 per cent invalidity was determined for him as aforesaid, he shall be deemed to have capitalised the capitalised part for a period of nine years only or for a period ending on the day on which he completed his fifty-fifth year, whichever period ends later; (5) if paragraph (4) applies to him, the deduction made in con• sequence of capitalisation shall be frozen upon the expiration of the eighth year from the date of the capitalisation or with effect from the day on which he completes his fifty-fifth year, whichever is later;
1) Sefer Ha-Chukkim of 5731, p. 107; LSI vol. XXV, p. 105. (6) paragraphs (4) and (5) shall not apply where the calculation
under section (1) and (2) is more favourable to him; , (b) A person who in the period between the 18th Tevet, 5735 (1st January, 1975) and the date of the adoption of this Law bythe Knesset capitalised part of his pension for a period of ten years shall be deemed to have capitalised such part from the date of the capitalisation for a period of nine years only or for a period ending on the day on which he completes his sixty-fifth year, whichever period ends later. (c) Notwithstanding the provisions of subsections (a) and (b), the period of capitalisation of a pension to which this section applies shalll not exceed ten years. (d) Where the capitalised pension is due in consequence of retire• ment from service as a police officer or prison officer, this section shall be read as if the words "his sixty-fifth year", wherever occurring therein, were replaced by the words "his sixty-second year". 5. From the date at which a period referred to in section 3 (1) or (4) Termination of deduction made or 4 (a) (1) or (4) or 4 (b) ends in respect of a particular person entitled, in consequence of the pension shall be paid as if it had not been capitalised, and the person capitalisation. entitled shall not be required to return any capitalised part. 6. A pension under the provisions of this Law shall only be paid in Scope of applica• respect of the period from the 18th Tevet, 5735 (1st January, 1975) tion. onwards. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State
(No. 6) LOCAL AUTHORITIES (TELEVISION AND WIRELESS AERIAL MASTS) LAW, 5736—1975*
1. In this Law— Definitions, "house", "cooperative house", "dwelling" and "common property" have the respective meanings assigned to them in section 52 of the Land Law, 5729—1969l) (hereinafter referred to as "the Land Law"); "owner of mast" means a person whose wireless or television receiving set is served by a mast.
* Passed by the Knesset on the 20th Kislev, 5736 (24th November, 1975) and published in Sefer Ha-Chukkim No. 785 of the 30th Kislev, 5736 (4th December, 1975), p. 14; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1116 of 5735, p. 166. 1) Sefer Ha-Chukkim of 5729, p. 259; LSI vol. XXIII, p. 283.
9 Limitation of 2. A local authority may decide that in its area or in part thereof no number of masts. house shall have more than one television or wireless aerial mast (hereinafter referred to as a "mast") per staircase, and it may in its decision direct that a particular house or category of houses shall not have more than one mast even if it or they has or have more than one staircase.
Publication of 3. A local authority shall not decide as specified in section 2 unless a draft decision. draft of the decision was published in Reshumot and posted up on notice- boards in its area at least three months before its adoption. If the pro• posed decision relates to only part of the area of the local authority, the publication shall indicate the numbers of the blocks and parcels or the quarters, streets and house numbe'rs, as the case may be.
Opposition. 4. Where a draft has been published under section 3. any person! likely to be adversely affected by the decision may lodge written opposi• tion to it with the local authority within the time prescribed by regulations. The local authority shall decide upon the opposition after giving the opponent an opportunity to state his case, in writing or orally, before it or a person appointed by it in that behalf, as may be specified in regulations. Notice of implementation 5. (a) Where the time for lodging opposition has expired and the of decision. local authority has. decided upon such opposition as has been lodged, it may adopt the draft, with or without variations, or reject it; but it shall not at this stage enlarge the part of its area to which the decision is to apply beyond the limits specified in the published draft. (b) Where the local authority has decided to adopt the draft, with or without variations, the head of the local authority or a person empowered on his behalf shall publish a notice to such effect in the same manner as the draft was published and shall serve every owner of a mast required to remove it under the decision, with personal notice to do so within three months from the date of service. (c) Where the owner of the mast cannot be identified, the notice shall be served upon the representation in the case of a cooperative house and upon every resident in the case of any other house, but it may also be served by posting it in a conspicuous position on the front of the house or on the staircase. (d) Where no zonal mast as referred to in section 12 exists, the local authority shall by notice under this section request the installation of one central mast for a house or for each staircase in a house, as may be provided in its decision under section 2. The standard for a central mast shall be as provided in the Planning and Building (Application for Permit, Conditions Thereof and Fees) Regulations, 5730—19701).
1) K.T. of 5730, p. 1841; K.T. of 5732, p. 1177.
10 6. (a) Where a person served with notice under section 5 does not Removal of mast remove the mast as provided in section 5 (b), the local authority may have by local authority. it removed by its employees provided that the other requirements set out in this section are fulfilled. (b) Where by virtue of this Law a duty exists to remove a mast, •the local authority may also, if necessary, install a central mast. (c) A local authority shall not remove a mast under this section unless — (1) the house has a central mast for which a permit has been granted under the Planning and Building Law, 5725—19651). or the zone has a zonal mast, and all the aerials on the masts which it has been decided to remove can be connected to such central or zonal mast, or a mast as aforesaid has been installed by the local authority, or (2) each of the owners of the mast or each person whose receiving set is connected thereto has, in the manner prescribed by regulations, given notice that he is not interested in con• tinued connection to a central or other mast, or (3) the whole house is a cooperative house and its rules prescribe that there shall be no masts on the roof. (d) For the removal of masts as aforesaid, employees of the local authority appointed for the purposes of this Law shall have the follow• ing powers and shall not require a court decision for exercising them: (1) power to enter a house, except a dwelling; (2) power to install new central masts; (3) power to use reasonable force.
7. (a) A mast removed by the local authority under this Law, in• Consequences of cluding aerial accessories attached thereto, shall be confiscated and shall removal of mast by local become the property of the local authority, and the expenses of its authority. removal shall fall on the owner of the mast. (b) Where the local authority has installed' a central mast or central masts under section 6, the expenses of its installation shall fall on the residents of the house in the ratio in which they have to share expenses under section 8. .
8. (a) Where a local authority has requested the installation of a Installation of central mast under this Law and it is to be or has been installed by the central mast. person who received notice under section 5 (b) or (c) or by the local authority, the following provisions shall apply: (1) If the whole house is a cooperative house, then, unless other• wise agreed between the owners of all the dwellings, the central mast shall be common property and the provisions of the Land Law as to
1) Sefer Ha-Clmkkim of 5725, p. 307; LSI vol. XIX, p. 330.
11 the maintenance of common property shall apply both to the duty of installing the mast and to the apportionment of the expenses of its installation and maintenance; (2) if the house is not wholly a cooperative house, the duty of installation and the expenses shall, unless otherwise agreed between the occupiers of the dwellings, fall upon them as if they were the owners of the dwellings and the whole house were a cooperative house; for this purpose — (a) where there is no representation, all the occupiers shall together be regarded as the representation for the purposes of the installation and maintenance of the mast; (b) where it is proved that the occupier of a dwelling is not a tenant to whose tenancy or occupancy the Tenants' Protection Law (Consolidated Version), 5732—19721) (hereinafter re• ferred to as "the Tenants' Protection Law") applies, he shall for the purposes of rights and duties under this Law be . replaced by the owner of the dwelling; (c) the mast shall, notwithstanding anything provided in the Land Law, be the property of the residents who installed it, and placing it on the roof shall not make the owner of the roof liable in tort as owner or entitle him to deal with the mast in the manner of an owner without the consent of the occupiers of the dwellings; id) the owner of the house may remove the mast to enable building work to be carried out on the roof by virtue of a building permit under the Planning and Building Law, 5725— 1965, but he shall re-install it upon completion of the work or . its discontinuance otherwise than temporarily or its non- commencement within a reasonable time after removal of the mast; this paragraph shall not derogate from any prohibitions and obligations imposed on the owner of the house by agree• ment; (e) where an occupier to whose tenancy or occupancy the Tenants' Protection Law applies has incurred expenses in the installation or maintenance of the central mast, these ex• penses shall be deducted on dividing the key-money when he or his successor vacates as if he had incurred them for basic alterations to the leased premises; (/) the installation or re-installation of the mast shall be permissible notwithstanding opposition from the owner of the house, and his signature to the application for a building permit under any law shall not be required;
Sefer Ha-Chukkim of 5732, p. 176; LSI vol. XXVI, p. 204. (g) the Minister of the Interior may, with the consent of the Minister of Justice, make regulations adapting the application of the provisions of the Land Law relating to cooperative houses to houses other than cooperative houses, (b) Where the number of those requesting the installation of a central mast on a cooperative house is less than 25 per cent of the total number of the owners of dwellings, the inspector appointed under the Land Law may, on the application of an interested owner of a dwelling, prescribe special arrangements for financing its installation by the owners of dwellings interested therein, including their right to recover part of their expenses if one of the owners of the other dwellings subsequently wishes to be connected to the central mast installed by them.
9. (a) Where a mast is removed under this Law after being installed Compensation, by virtue of a permit under the Planning and Building Law, 5725—1965, the local authority shall compensate the owner of the mast. (b) Compensation under this section shall be of an amount equal to the cost of installation of the mast or to the contribution to such cost by the owner of the mast or to the cost of connection to a zonal mast, whichever is the greatest amount. (c) Compensation under this section may be set off against a debt of the person entitled thereto to the local authority. (d) The obligation to pay compensation in the case referred to in subsection (a) shall be indicated in the notice under section 5. 10. The local authority may by byelaw prescribe a fixed amount for its Fixed amount of expenses in respect of the removal of a mast and the installation of a cen• expenses. tral mast in its stead. Where an amount as aforesaid has been fixed, ex• penses incurred to that amount may be collected in the manner in which the general rate is collected. This power shall not derogate from the right of the local authority to recover actual expenses by way of action in court. 11. Where within the three-month period prescribed in the notice to the Extension of time, owner of mast on a particular house it is proved to the satisfaction of the head of the local authority that an agreement has been made with a con• tractor for the installation of a central mast for that house, he shall extend the period for the removal of the mast until the expiration of another three months or until the installation of the central mast, whichever is earlier. 12. (a) A local authority may, with the approval of the Minister of Zonal mast. Communications, install or permit the installation of a zonal mast for television aerials. (bj Where a zonal mast has been installed, no more permits shall be issued under any law for the installation of a mast in the area served by the zonal mast. A byelaw shall regulate the installation of, connection
13 to and maintenance of the zonal mast and the fees and other payments for the use thereof.
Restriction on 13. (a) The duty to remove masts shall not apply to — duty to remove the mast of an aerial for the reception of broadcasts not (1) ׳ .masts directed to the general public or (2) the mast of an aerial used mainly for transmissions. (b) A notice in Reshumot under section 5 shall set out the ex emptions specified in subsection (a). Penalties. 14. The owner of a mast who, having been requested to remove it under this Law, fails to comply with the request shall be liable to a fine of 1,000 pounds and to an additional fine of 20 pounds in respect of every day of delay in complying. The installation of a mast by the local authority shall not release the owner from liability under this section.
Regulations. 15. The Minister of the Interior may make regulations as to any matter relating to the implementation of this Law.
YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State
(No. 7) CUSTOMS ORDINANCE (AMENDMENT No. 6) LAW, 5736—1975*
Amendment of 1. In section 160 of the Customs Ordinance1), after the words "be section 160. longing to a class the importation of which is duty-free", there shall be inserted the words "or exempt from purchase tax if sold to an oleh**, within the meaning of the Schedule to the Customs Tariffand Exemption Ordinance, 19372)". YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State
* Passed by the Knesset on the 21st Kislev, 5736 (25th November, 1975) and published in Sefer Ha-Chukkim No. 785 of the 30th Kislev, 5736 (4th December, 1975), p. 17; the Bill and an Explanatory Note were published in Hatza'ot Chök No. 1206 of 5735, p. 459. ;Medinat Israel (Nusach Chadash) No. 3 of 5717, p. 39 — NV vol. I, p. 51 ־»»1¿ (1 Sefer Ha-Chukkim oi 5732, p. 16 — £Wvol. XXVI, p..17. • 2) P.G. of 1937, Suppl. I, p. 215 (English Edition); Sefer Ha-Chukkim of 5725, p. 118 — LSI vol..XIX, p. 115; Kovetz Ha-Takkanot, She'ure Makach (Rates of Customs Duty, Purchase Tax and Compulsory Payments) of 5735, p. 639. ** The general meaning of "oleh" is an immigrant under the LaW of Return, 5710—1950" (Tr.).
14 (No. 8) STATE SERVICE (BENEFITS) (AMENDMENT No. 12) LAW, 5736—1975*
1. In the State Service (Benefits) Law (Consolidated Version), 5730— Addition of 19701) (hereinafter referred to as "the principal Law"), the following ?2A• section shall be inserted after section 72: "Voluntary 72 A. Section 17 shall be read as if the following were added retirement on pension. at the end: "(4) if he is a police officer — after twenty-five years of service, including not less than fifteen years in the Police, if he has attained the age of fifty years and the Inspector-General of Police consents to his retirement.".".
2. Section 77 of the principal Law shall be replaced by the following Replacment of section: . section 77. "Gratuity in 77. Section 22 shall be read as if it provided as follows: addition to pension. "22. (a) A police officer dismissed from the Service who in consequence of his dismissal is entitled to a pension under this Law, and a police . officer whose retirement on pension the Inspector- ,73׳ General of Police has directed under section • shall, in addition to the pension, be paid a gratuity equal to the twenty-fourth part of his annual salary multipled by the number of his years of service: provided that the gratuity shall not exceed the amount of his annual salary. ־b) ,.Where a police officer has been dis) missed in circumstances under which his right to a benefit might be denied by virtue of section 76(b) ,but the power so to deny it has not been exercised• „.-.•׳ the Inspector-General of Police may, with the ap- : proval of the Minister of Police, decide that the whole or part of the gratuity under this section shall not be paid to him.
* Passed by the Knesset on the 21st Kislev, 5736 (25th November' 1975) and published in Sefer Ha-Chukkim No. 785 of the 30th Kislev, 5736 (4th December, 1975), p. 18; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1175of5735,p.213. 1) Sefer Ha-Chukkim of 5730, pp. 65 and 120 — LSI vol. XXIV, pp. 58 and 125; Sefer Ha-Chukkim of 5731, p. 107 — LSI vol. XXV, p. 105; Sefer Ha-Chukkim of 5733, pp. 78, 80, 82, 200 and 255 — LSI vol. XXVII, pp. 73, 77, 78, 218 and 294; Sefer Ha-Chukkim of 5735, pp. 128 and 238 —LSI vol. XXIX, pp. 158 and 318; Sefer Ha-Chukkim of 5736, pp. 10 and 11 — supra, pp. 6 and 7. (c) Where a police officer retires on pen• sion in the circumstances described in section 17 (4), he shall, in addition to a pension, be paid a gratuity being a percentage specified hereunder of an amount equal to the twenty-fourth part of his annual salary multiplied by the number of his years of service or to his annual salary, whichever is less: (1) if at the time of retirement he is 51 years of age — 15 per cent; (2) if at that time he is 52 years of age — 30 per cent; (3) if at that time he is 53 years of age — 50 per cent; (4) if at that time he is 54 years of • age — 75 per cent; (5) if at that time he is 55 years of age or over — 100 per cent.".".
Addition of 3. The following sections shall be inserted after section 78 of the anions 78A and principal LaW:
"Pension and 78A. Section 35 (a) shall be read as if the following sa ary. paragraphs were added at the end: "(3) A person who retired from service as a police officer under circumstances entitling him to a re• tirement pension and did not return to service in the Police and whose total income exceeds the determining salary shall notwithstanding anything provided in paragraph (1) be paid a pension at the rate of two thirds of the amount of the ordinary pension or at the rate of the ordinary pension less , one third of the amount by which the total income exceeds his determining salary, whichever is more; where the total income does not exceed the deter• mining salary, the pension shall not be reduced by virtue of this paragraph; • (4) for the purposes of paragraph (3) — "ordinary pension" means the pension which would be due but for the provisions of this section; "total'income" means the current salary plus the ordinary pension.".
16 Deferment of 78B. Section 46 shall •be read as if the following payment of subsection were added at the end: pension. "(c) An employee who retires on pension under section 17 (4) before attaining the age of 55 years ' shall, notwithstanding anything provided in sub section (a), be paid a retirement pension from the month beginning after the day on which he at- . tains the age of 55 years: Provided that jf the Medical Board finds that he is incapable of earning a living outside the Service he shall be paid the pension from the month-beginning after the day on which the ground therefor arose or, if his incapacity as aforesaid began later, from the month beginning after the day on which such ' incapacity began.".".
4. In section 79 of the principal Law — Amendment of (1) the following paragraphs shall be added "at the end of sub section 79. section (a): "(4) active service as a police officer of the Government of Eretz Israel; (5) full-time service in the notrut (special constabulary for guard duty) of the Government of Eretz Israel."; (2) subsection (b) shall be replaced by the following subsection: "(b) Where a person was engaged for service in the Israel Police before the 11th Iyar, 5718 (1st May, 1958) and served therein, on duty recognised by the Inspector-General of Police as police duty, for at least five years, then the period of his security service shall be added to the period of'his service in the State Service within the meaning of this Law provided he submits an application for recognition of his security service, accompanied by written evidence, to the Inspector-General of Police, or a person appointed by him in that behalf, by the date prescribed by regulations.".
5. The following sections shall be inserted after section 79 of the Addition of ! sections 79A .and 79B ׳ ׳ ׳ : principal Law "Provisions as to 79A. (a) Where a person retires from the Service as a compulsory police officer, a period of compulsory service which service. preceded his service within the meaning of this Law ־• shall be included in calculating the period of the latter service if he served in the. Police for not less than ten years and not more than one year elapsed between the termination of his compulsory service and the commen cement of his service as a police officer.
17 (b) In this section, "compulsory service" means service in the Defence Army of Israel other than under an engagement for .permanent service and other than under Chapter Four of the Defence Service Law (Con solidated Version), 5719—19591). Increased 79B. Where the calculation of a person's period of pension. service includes a period of compulsory service within the meaning of section 79A and he is entitled to a retire ment pension, he shall, notwithstanding the provisions of section-20 (a), be paid a pension according to all his years of service even if it exceeds 70 per cent of his determining salary, provided that it does not exceed such 70 per cent by more than the six-hundredth part of the amount of his determining salary, multiplied by the number of the months of compulsory service as afore- ' said.".
Transitional 6. This Law shall also apply to a pension or pensions due to a person provision. who retired from the Service before its coming into force, or to the survivors of such a person in respect of the period beginning with the first of the month following such coming into force.
YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State
(No. 9) STATE SERVICE (DISCIPLINE) (AMENDMENT No. 4) LAW, ־ * 1975—5736 Addition of 1. In the State Service (Discipline) Law, 5723—1963 2), the following section 75A. section shall be inserted after section 75 : Provisions as to 75A. (a) The Prime Minister may, with the approval employees of the General Security of the Foreign Affairs and Security Committee of the Service and the Knesset, enact, by order, provisions as to the regime and Intelligence discipline applicable in the General Security Service and Agency. the Intelligence and Special Duties Agency, including provisions as to the application, with such modifications as he may prescribe, of the provisions of this Law.
1) Sefer Ha-Chukkim of 5719, p. 286; LSI vol. XIII, p. 328. * Passed by the Knesset on the 20th Kislev, 5736 (24th November, 1975) and published in Sefer Ha-Chukkim No. 785 of the 30th Kislev, 5736 (4th December, 1975). p, 20; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1166 of 5735, p. 170. 2) Sefer Ha-Chukkim of 5723, pp. 50 and 98 — LSI vol. XVII, pp. 58 and 124; Sefer Ha-Chukkim of 5731, p. 39 — LSI vol. XXV, p. 31 ; Sefer Ha-Chukkim of 5734, p. 54 — LSI vol. XXVIII p. 49.
18 (b) An order as aforesaid may prescribe the ex• tent to and manner in which organisational provisions embodied in any regulation, direction, practice, orga• nisational arrangement or general agreement applying to other State employees shall apply to the employees of those bodies; in this regard, the order shall also require prior consultation with the Minister of Finance and the representative organisation of employees. (c) An order under this section shall not require publication in Reshumot and shall be brought to the knowledge of the employees and the representative organisation in the manner therein prescribed. (d) For the purposes of this section, "the re• presentative organisation of employees", in relation to a particular body, means the organisation to which the greatest number of organised employees of that body belongs."
YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State
(No. 10) SAVINGS LOAN (5735—1975) (AMENDMENT) LAW, 5736—1975*
1. In the Savings Loan Law 5735—1975*), the following paragraph Amendment of shall be added at the end of section 1: section 1. "(4) "work income" does not include — (a) payments made to an employee to cover his ex• penses for the maintenance of a vehicle, or the value of the use of a vehicle placed at the disposal of an em• ployee; (6) payments made to an employee to cover his ex• penses for the maintenance of a telephone at his resid• ence; (c) work income as referred to in section 3 (i) of the Ordinance.".
* Passed by the Knesset on the 21st Kislev, 5736 (25th November, 1975) and published in Sefer Ha-Chukkim No. 786 of the 30th Kislev, 5736 (4th December, 1975), p. 22; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1214of5736,p.78. 1) Sefer Ha-Chukkim of 5735, p. 116; LSI vol. XXIX, p. 148.
19 Commencement. 2. This Law shall have effect from the 20th Nisa'n, 5735 (1st April, 1975).
YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance
Ä EFRAYIM. KATZIR President of the State
, • ־ (No. 11) , EMPLOYERS TAX (5735—1975) (AMENDMENT) LAW, 5736—1975*
Amendment of 1. In the Employers' Tax Law, 5735—19751), the following paragraph section 1. shall be added at the end of section 1: ""(3) "work income" does not include — (a) payments made to an employee to cover his ex penses for the maintenance of a vehicle, or the value of the use of a vehicle placed at the disposal of an employee;. (b) payments made to an employee to cover his ex penses for the maintenance of a telephone at his resid ence; (c) work income as referred to in section 3 (i) of the Ordinance.".
Commencement. 2. This Law shall have effect from the 20th Nisan, 5735 (1st April, 1975).
YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State
* Passed by the Knesset on the 21st Kislev, 5736 (25th November, 1975) and published in Sefer Ha-Chukkim No. 786 of the 30th Kislev, 5736 (4th December, 1975), p. 22; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1214 of 5736, p. 78. 1) Sefer Ha-Chukkim of 5735, p. 118; LSI vol. XXIX, p. 152.
20 (No. 12)
LOCAL AUTHORITIES (LEGAL ADVICE) LAW, 5736—1975"
1. In this Law, 'local authority" means a municipality or local Definition. council.
2. A local authority shall have the duty to obtain legal advice. Duty to obtain legal advice. 3. (a) A local authority shall appoint an advocate to be its legal Duty to appoint adviser if the number of its inhabitants is not less than 50,000 or if the legal adviser. Minister of the Interior so requests. (b) A legal adviser as aforesaid shajl ,be •an-employee of the local authority and the provisions applying to its employee^ shall apply to his appointment and tenure.
4. Where a local authority the number of'whose inhabitants is less One legal adviser than 50,000 has engaged an advocate as its legal'adviser with employee for several local authorities. status, such advocate may also serve other local authorities as legal adviser with employee status, provided that the number of local authori• ties for which he is legal adviser does not exceed four, that the aggregate number of their inhabitants does not exceed 75,000 and that all the local authorities concerned consent thereto.
5. Notwithstanding sections 177 and 180 of the Municipalities Ordi• Outside work of municipal legal nance i), a municipality the number of whose inhabitants is less than 50,000 adviser. may permit its legal adviser, being its employee, to do outside work for remuneration, provided that — (1) his post with the municipality is not more than half-time; (2) his outside work does not interfere with his functions as an employee of the municipality; (3) no unfair competition with anyone not an employee of the municipality is involved; and (4) no ties between him and any person, body corporate or institu• tion maintaining financial, commercial or factual contacts with the municipality are created.
6. (a) The legal adviser to a local authority, being its employee Obligatory (hereafter in this section referred to as "the legal adviser") shall be invitation to meetings. invited to the meetings of the council, including its meetings as a local
* Passed by the Knesset on the 5th Tevet, 5736 (9th December, 1975) and published in Sefer Ha-Chukkim No. 787 of the 14th Tevet, 5736 (18th December, 1975), p. 24; the Bill and an Explanatory Note were published m.Hatza'ot Chok No. 1130 of 5734, p. 237. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 8, p. 197; NV vol. 1, p. 247.
21 planning and building commission under the Planning and Building Law, 5725—1965!), as well as to the meetings of the planning and building subcommission, the tenders committee and the finance committee. (b) The Minister of the Interior may, by regulations, designate committees to whose meetings the legal adviser is to be invited in addi• tion to those mentioned in subsection (a). (c) When present at a meeting to which he has been invited by virtue of this section, the legal adviser shall be given an opportunity to state his professional opinion before any decision is taken. (d) The legal adviser may empower an advocate from the staff of his office at the local authority to represent him in a particular matter or class of matters.
Transactions 7. (a) The Minister of the Interior shall prescribe by regulations, requiring written with the approval of the Home Affairs Committee of the Knesset, classes opinion. of transactions into which a local authority shall not enter before having received a written legal opinion on the transaction. (b) A local authority shall not enter into a written contract before having received a written legal opinion on the transaction.
Prohibition of 8. A legal adviser to a local authority, even if not its employee, and representing a member of the staff of his office at the local authority or of his own clients. law office shall not represent a client in any matter relating to that local authority. This provision shall add to, and not derogate from, the duties of an advocate under any other law.
Commencement. 9. Sections 3, 4, 5 and 7 shall come into force on the expiration of six months from the date of publication of this Law.
Implementation 10. The Minister of the Interior is charged with the implementation of and regulations. this Law and may make regulations as to any matter relating to its implementation.
YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State
1) Sefer Ha-Chukkim of 5725, p. 307 ; LSI vol. XIX, p. 330.
22 (No. 13) SHORT-TERM LOAN (AMENDMENT No. 11) LAW, 5736—1975*
1. In section 7 of the Short-Term Loan Law, 5720—19601), the Amendment of expression "25 per cent" shall be replaced by the expression "35 per sect,on 7- cent".
YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State
(No. 14) NATIONAL DEFENCE LOAN (5729—1969) (AMENDMENT No. 6) LAW, 5736—1975**
1. In section 6 (2) of the National Defence Law, 5729—19692). the Amendment of expression "25 per cent" shall be replaced by the expression "35 per cent", section 6.
YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State
* Passed by the Knesset on the 5th Tevet, 5736 (9th December, 1975) and published in Sefer Ha-Chukkim No. 787 of the 14th Tevet, 5736 (18th December, 1975), p. 25; the Bill and an Explanatory Note were published in Hatzd'ot Chok No. 1210 of 5736, p. 44. 1) Sefer Ha-Chukkim of 5720, p. 48 — LSI vol. XIV, p. 41; Sefer Ha-Chukkim of 5732, p. 17 —LSI vol. XXVI, p. 20.
** Passed by the Knesset on the 5th Tevet, 5736 (9th December, 1975) and published in Sefer Ha-Chukkim No. 787 of the 14th Tevet, 5736 (18th December, 1975), p. 25; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1250 of 5736, p. 44. 2) Sefer Ha-Chukkim of 5729, p. 82 — LSI vol. XXIII, p. 89; Sefer Ha-Chukkim of 5733, p. 95 —LSIvol. XXVII, p. 92.
23 (No. 15) LOAN (INSURANCE COMPANIES) (AMENDMENT No. 3) LAW, 5736—1975*
Amendment of 1. In section 1 of the Loan (Insurance Companies) Law, 5723—1962 ^ section 1. (hereinafter referred to as "the principal Law") — (1) the definition of "basic index" shall be replaced by the following definition: "basic index" — (1) in relation to an "A" bond, within the meaning of section 3 (b), means the index last published before the stated date of the bond; (2) in relation to a "B" bond, within the meaning of section 3(b), means the index published for the month in which the stated date of the bond falls;"; ,(2) in the definition of "new index" — (1) . the words "a "B" bond or" shall be inserted after the words "for the purpose of the redemption of" in para• graph(!); (2) the words "a bond" in paragraph (2) shall be replaced .by the words "an "A" bond"; (3) the following paragraph shall be added after para• graph (2): "(3) for the purposes of the acquisition of a "B" bond means the index for the month in which the day of acquisition falls;".
Amendment of 2. In section 2 of the principal Law, the expression "200 million section 2. pounds" shall be replaced by the expression "1,250 million pounds".
Replacement 3. Section 3 of the principal Law shall be replaced by the following of section 3. sections: ,
"Bonds. 3. (a) jhe Minister of Finance may issue to the lending companies non-transferable nominative bonds in such series as he shall direct. (b) Bonds of two classes shall be issued, deno• minated "A" and "B". "A" bonds shall be issued for
Passed by the •Knesset on-the 12th Tevet,-5736 (16th December, 1975), and pu• blished in Sefer Ha-Chukkim No. 788 of the 21st Tevet, 5736 (25th December, 1975), p. 28; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1209 of 5736, p. 39. Sefer Ha-Chukkim of 5723, p. 10 — LSI vol. XVII, p. 14; Sefer Ha-Chukkim of 5724, p. 6 — LSI vol. XVIII, p. 6; Sefer Ha-Chukkim of 5729, p. 222 — LSI vol. XXIII, p. 241.
24 moneys derived from premiums under life insurance contracts which were entered into and came into force •- before the.20th;• Shevat,• 5735 (1st February, 1975), such moneys not having been paid before the time fixed for their payment by the terms of the contract. "B" bonds shall be issued for other moneys.". "4. At the end of section 5 (a) of the principal Law there shall be added Amendment of section 5. the words "and that bonds the day of acquisition of which is the 17th Nisan, 5732 (1st April; 1972) or any subsequent day shall bear interest at the rate of 6.2 per cent from1 the day of their acquisition or interest at another rate prescribed by thé Minister of Finance by regulations, with the approval of the Finance Committee of ,the,Knesset, either generally or in respect of a particular series". , . 5. Section 11 of the principal Law shall be re-marked as section 11 Amendment of (a) and the following subsection shall be added thereafter : section 11. "(b) The Minister of Finance may, instead of issuing bonds, keep a record of bonds acquired by a lending company.".
6. v Section 12 of the principal Law shall be re-marked as section 12 Amendment of (a) and the words "subject to any excess of the new index... over the section 12. basic index" shall ,be replaced by the words "adjusted to any difference between the new index ...and the basic index". (b) The following subsection shall be added after section 12 (a) of the principal Law : "(b) Notwithstanding the provisions of subsection (a), bonds the day of acquisition of which is the 17th Nisan, 5732 (1st April, 1972) or any subsequent day shall be sold without discount: Provided that the Minister of Finance may permit the sale thereof at a discount not exceeding a percentage prescribed by him by regulations, with the approval of the Finance Committee of the Knesset, generally or in respect of a particular series.".
YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance
EFRAYIM KATZIR President of the State
25 (No. 16) EXPLOSIVES (AMENDMENT No. 2) LAW, 5736—1975*
Amendment of 1: In section 8 of the Explosives Law, 5714—1954J) (hereinafter referred section 8. to as "the principal Law"), the words "or use" shall be inserted after the words "or purchase".
Amendment of In section 19 of the principal Law — section 19. (1) in subsection (a), the words "or who does any such thing in contravention of a condition or restriction imposed by the permit" shall be replaced by the words "or who infringes any condition or restriction imposed by the permit or contravenes the provisions of section 5" and the words "two thousand" shall be replaced by the words."fifteen thousand" ; (2) in subsection (b) — (a) the following paragraph shall be added after para• graph (4): "(5) contravenes the provisions of section 16" ; (b) the words "one thousand pounds" in the closing passage shall be replaced by the words "five thousand pounds" ; (3) in subsection (c), the words "five thousand pounds" shall be replaced by the words "thirty-five thousand pounds".
Amendment of 3. In section 22 (a)(1) of the principal Law, the word "use" shall be section 22. inserted after the word "manufacture".
YITZCHAK RABIN Prime Minister EFRAYIM KATZIR President of the State
* Passed by the Knesset on the 12th Tevet, 5736 (16th December, 1975) and pu• blished in Sefer Ha-Chukkim No. 788 of the 21st Tevet, 5736 (25th December, 1975), p. 29; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1191 of 5735, p. 382. i) Sefer Ha-Chukkim of 5714, p. 65 — LSI vol. VIII, p. 57; Sefer Ha-Chukkim of 5722, p. 6 — LSI vol. XVI, p. 6.
26 (No. 17) EMERGENCY REGULATIONS (ARRANGEMENTS FOLLOWING CHANGE IN RATE OF CURRENCY) (EXTENSION OF VALIDITY) LAW, 5736—1975*
1. The validity of the Emergency Regulations (Arrangements Follow• Enactment of 1 amended ing Change in Rate of Currency), 5736—1975 ),in the form set out in version and the Schedule, is hereby extended until the 10th Tevet, 5737 (31st Decem• extension of ber, 1976). validity. 2. Subject to the provisions of regulation 11, a stock charge paid under Saving of validity. the provisions of regulation 10 (a), as in force immediately before the publication of this Law, shall be regarded as validly paid. 3. This Law shall come into force on the 23rd Tishri, 5736 (28th Commencement. September, 1975); but the provisions of this section shall not be invoked to prosecute a person under regulation 44 for an act done or omission made before the publication of this Law.
SCHEDULE CHAPTER ONE: GENERAL 1. In these Regulations — Definitions. "owner of goods" has the same meaning as in the Customs Ordinance2), "the determining day" means the 23rd Tishri, 5736 (28th September, 1975); "charge" means a charge under these Regulations; "the Director" means the Director of the Department of Customs and Excise or a person empowered by him for the purposes of these Regulations; "the Controller" means the Controller of Foreign Exchange, within the meaning of regulation 2 of the Defence (Finance) Regulations, 19413) (hereinafter referred to as "the Currency Regulations"); "allocation" means the acquisition of foreign currency from an authorised dealer; "the new rate", in relation to any kind of foreign currency, means the purchase price in pounds first prescribed for that currency by a Bank
* Passed by the Knesset on the 20th Tevet, 5736 (24th December, 1975) and pu• blished in Sefer Ha-Chukkim No. 789 of the 28th Tevet, 5736 (1st January, 1976), p. 32; the Bill and an Explanatory Note were published in Hatza'ot Chok, No. 1215 of5736,p.90. 1) Kovetz Ha-Takkanot of 5736, pp. 142 and 271. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 3, p. 39; vol. I, p. 51. 3) P.G. of 1941, Suppl. II, p. 1647 (English Edition); Sefer Ha-Chukkim of 5734- p. 89 — LSI vol. XXVIII, p. 90.
27 . of Israel Circular to Banks (Authorised Dealers) Concerning Ex- change.Rates of Foreign.Currency (Transfers and Drafts).(hereinafter
referred to as av"Bank of Israel,.Circular,'•').on or after the deter mining day; "the previous rate", in relation to any •kind •of foreign currency, means the purchase.price in pounds last.prescribed for that currency by a Bank of Israel Circular before the determining day; "goods" means goods which have been imported into Israel and the con- which has been paid by׳sideratipn.or, part, of the,consideration for . means of an allocation or out of an international loan designated by the Controller and to the extent designated by him; . "holder", in relation to foreign currency, means an Israel resident who in or outside Israel has acquired foreign currency and holds it in his possession or under his control or who has a right in foreign currency in or outside Israel in any form whatever; "price of goods" means the normal price, within the meaning of section 130 of the Customs Ordinance, as stated in pounds in an entry passed by the collector of customs or, in the absence of such an entry, in some other import document; "foreign currency" means any foreign currency, within the meaning of regulation 6 of the Currency Regulations, specified in the First , " ' Schedule; . "delivery for home consumption" has the same meaning as in the Customs Ordinance; "dealer", in.relation to any goods, means a person who owns or has possession or control of the goods as stock for sale or other use in his business; "authorised dealer" has the same meaning as in regulation 3 (2) of the Currency Regulations; "control of the Customs" has the same meaning as in the Customs Or dinance. .... Payment 2. A charge shall be paid to the Treasury. -1 - . ־ • . • • , .... .of charge
CHAPTER Two: CURRENCY CHARGE
Currency 3. (a)^ An authorised dealer who on the determining day holds any charge on workingcapital shall paya currency charge_thereon. vt working capital. (b) In this section — (1) "working capital" means foreign currency in any form a right thereto, ,being foreign.currency the hold ׳whatsoever o.i. , ing of which as working capital has been permitted by the Controller, and foreign currency, in any form whatsoever, which is actually held as working capital, and includes any
28 foreign currency which on the determining day has accumu• lated in the course of business; . (2) "person holding working capital" includes a person holding foreign currency which was acquired at the previous rate and which the acquirer, ,spent, in a transaction effected without the Controller's permission or before the time at • which the Controller permitted it to be effected.' 4. Where on or after the determining day a person holds any foreign Currency charge on currency required by law to be sold to an authorised dealer at the previous currency rate or which ought to, have been sold to an authorised dealer before the balances determining day, and such foreign currency is sold at the new rate or required to be sold to has not yet been sold, such person shall pay a currency charge thereon. authorised dealer.
5. A currency charge shall be of the amount of the difference between Rate of the new rate and the previous rate of the kind of currency concerned. currency charge. 6. A currency charge shall be paid within fifteen days from the deter- Time for . mining day or within three days from the day on which the working payment of currency capital or foreign currency on which the charge is leviable came into the charge. hands of the person liable thereto, whichever period ends later.
7. Where in consequence of any act or omission in contravention of Fine in regulation 6 of the Currency Regulations the working capital or foreign the case of delay in currency has not come into the hands of the person liable to the currency receipt of charge, such person shall pay a fine 'at the rate of 24 per cent per annum foreign from the earliest time at which the working capital or foreign currency currency. would have come into his hands but for the act or omission until the day of actual payment thereof.
8. Not later than ten days after publication of these Regulations, an Delivery of authorised dealer shall deliver to the Controller a return, as the Con• return. troller may direct, containing particulars of any foreign currency held by him on the determining day.
CHAPTER THREE: STOCK CHARGE
9. (a) A dealer who owns or has possession or control of any goods Stock specified in the Second Schedule which have been imported into Israel charge. and the entry of which was passed for home consumption before the determining date, even though they may not yet have been removed from the control of the Customs, shall pay a charge thereon (hereinafter referred to as a "stock charge") consisting of the following two: (1) 10 per cent of the price of the goods calculated at the previous rate; (2) the difference between the total amount of taxes which would have been leviable on the goods if they had been released from the control of the Customs immedialtey before
29 the determining day and the total amount of taxes which would have been leviable thereon on the determining day with the price thereof for the purposes of customs legislation increased by 10 per cent. (b) For the purposes of this regulation, "taxes" means customs duty, purchase tax, and compulsory payments under the Emergency Re• gulations (Compulsory Payments), 5718-19581), (hereinafter referred to as "the Compulsory Payments Regulations"), payable on the goods. (c) Where the provisions of section 156, 160, 160A or 160C of the Customs Ordinance or the provisions of regulation 17 or 18 of the Com• pulsory Payments Regulations apply to any goods, the whole or part of a charge paid under the provisions of subregulation (a) (2) shall be treated as customs duty or compulsory payments under whichever of those sections or regulations is relevant. (d) Where it is proved to the satisfaction of the Director that the price of the goods is considerably different from the price thereof, within the meaning of section 130 of the Customs Ordinance, on the determin• ing day, he may collect the charge according to the price on the deter• mining day.
Time for 10. (a) A stock charge shall be paid in twelve equal, consecutive payment of stock charge. monthly payments the first of which shall be paid on the 1st Nisan, 5736 (1st April, 1976). Where the person liable pays the stock charge due from him in full not later than the 30th Shevat, 5736 (1st February, 1976), he shall be entitled to a reduction of 7.5 per cent on the amount of the charge: Provided that a reduction shall not be granted to a person who pays the charge as specified in subsection (b). (b) Notwithstanding the provisions of subregulation (a), a charge leviable on goods which have not yet been removed from the control of the Customs shall be paid in full before their removal therefrom, and the goods shall not be cleared so long as the charge has not been paid.
Exemption and 11. Where the charge on any stock does not exceed 15,000 pounds, the reduction. dealer shall be exempt from payment thereof. Where the charge exceeds the said amount, it shall be reduced by 15,000 pounds.
Exemption 12. A dealer shall be exempt from a stock charge in respect of goods from stock which he has proved to the satisfaction of the Director to have been charge on dead stock. owned by him, or to have been in his possession or under his control, for three years preceding the publication of these Regulations or for such
i) Sefer Ha-Chukkim of 5719, p. 18; LSI vol. XIII, p. 15; Sefer Ha-Chukkim of 5733, p. 84 — •LSI vol. XXVII, p. 79; Sefer Ha-Chukkim of 5734, p. 90 — LSI vol. XXVIII, p. 91.
30 shorter period as in the opinion of the Director is sufficient in the branch of trade concerned for regarding them as dead stock; but the Director may prescribe that goods which have been in the possession or under the control of a dealer for more than three years as aforesaid shall be charge• able with the charge if in the opinion of the Director they are not regarded as dead stock in the branch of trade concerned. 13. A dealer shall be exempt from a stock charge under regulation 9 Exemption from stock in respect of goods which he has proved to the satisfaction of the Director , charge on goods to have undergone processing in Israel before the publication of these processed in Israel and on Regulations and in respect of equipment used by him for the purposes equipment. of his business and not intended for sale. 14. (a) A dealer liable to a stock charge and a person whose business Declaration is the import of goods specified in the Second Schedule shall, not later of stock. than fourteen days after publication of these Regulations, deliver to the Director a return of such particulars as he may direct concerning goods used or intended for sale or some other use in his business, unless the Director otherwise requests. (b) A direction or request under subregulation (a) shall be general or to particular classes of dealers or to a particular dealer. (c) A person charged with a stock charge who proves to the satisfaction of the Director that he is not the owner of the goods in respect of which he has been so charged shall, not have to pay a stock charge thereon if he gives particulars thereof as provided in subregulation (a), as well as the name and address of the owner. This subregulation shall not exempt the dealer who is the owner of the goods from a stock charge. (d) Notwithstanding section 10 of the Law and Administration Ordinance, 5708-1948, and section 17 of the Interpretation Ordinance1) a direction or request under subregulation (a) shall be valid if it has been published in three daily newspapers and shall come into force on the day prescribed in it.
15. Where a dealer has not delivered a return, or has delivered a return Assessment but the Director considers that it is not complete or not correct, the to best of Director may to the best of his judgment assess the amount of the charge judgment. to which that dealer is liable. This assessment shall not affect any other liability of that dealer for not delivering a return or for delivering an incorrect return.
16. (a) A dealer who disputes the assessment may contest it in Contestation. writing, specifying his reasons, not later than the expiration of fourteen days from the day on which the assessment was served on him: Provided that where the assessment was made because no return had been delivered, the dealer may only contest it after delivering the return.
J) Dinei Medina( Yisrael (Nussach Chadash) No. 1, p. 2; NV vol. I, p. 5. (b) The Director may, for special reasons, extend the time for filing a contestation. (c) Where the person liable to trie charge has reached agreement with the Director as to the charge due" from him, the assessment shall be amended in accordance with the agreement and the person liable shall be served with notice of the charge payable by him. (d) Where the person liable to the charge has not reached agree ment with the Director, the Director shall decide upon the contestation, and he may in his decision confirm, increase or reduce the assessment. The Director shall give the contestor written notice of his decision, stating the reasons therefor.
Appeal. 17. (a) A person who considers himself aggrieved by a decision of the Director under section 16 may appeal to the District Court in the area of which the Director who gave the decision acts. (b) The appeal shall be dealt with by a single judge, and shall be heard in camera, unless the Court, on the application of the appellant, otherwise directs. (c) . The onus of proving that the assessment is excessive shall be on the appellant.
Contestation 18. The filing of'a'cbritestatidri 'or appeal shall not delay the payment and appeal of the charge in accordance with the assessment unless a court otherwise not to delay payment. directs. CHAPTER FOUR: IMPORT CHARGE
Import 19. (a) The owner of goods the entry of which has not yet been passed charge. for home consumption shall pay an import charge at the rate of 10 per cent of the price of the goods, calculated at the previous rate. (b) The goodS'Specified below are exempt from the charge: (1) , goods the consideration for which was paid, in foreign currency of the owner of the goods which was lawfully held by him, which is not part of an allocation and on which no currency charge under these Regulations is leviable; goods the consideration for which was or will be paid ־ (2) out of an allocation at the new rate or in foreign currency on which a currency charge has been paid; (3) goods which were received from a supplier in return for other goods which had been previously imported and the entry of which had been passed for home consumption but which had been returned by the importer to the supplier without additional consideration; (4) goods which were imported without consideration within the framework of a supplier's liability;
32 (5) goods which were imported under the General Import Licence, 5733—19731); (6) goods which will not be delivered for home consumption. (c) Where only part of the consideration paid for the goods is as specified in paragraph (1) or (2) of subregulation (b), the charge shall be paid on the remainder.
20. An import charge shall be paid before removal of the goods from Time for the control of the Customs, and the goods shall not be cleared so long payment of import as the charge has not been paid in full. charge.
21. An import charge shall not be leviable on goods entered for pur• Exemption from import poses of transhipment or transit as provided in section 62 of the Customs charge in Ordinance. respect of goods in transhipment or transit. 22. For the purpose of computing purchase tax under the Purchase Special 2 provision Tax (Goods and Services) Law, 5712—1952 ), on goods charged with an as to import charge, the import charge shall not be taken into account. computation of purchase tax. CHAPTER FIVE: EXEMPTIONS FROM AND REFUND OF STOCK CHARGE AND IMPORT CHARGE 23. (a) Where it appears to the Director that part of the consideration Part of consideration for goods on which a stock charge or import charge is leviable has not at new rate. yet been paid and will be paid out of an allocation at the new rate, or has been paid by means of a credit in foreign currency which will be repaid out of a foreign currency allocation, the part of the consideration or allocation calculated at the new rate shall not be taken into account for the purpose of payment of the charge. (b) Where it appears to the Director that part of the conside• ration for goods on which a stock charge or import charge is leviable was paid before the determining day out of an allocation at a rate higher than the previous rate, the charge collected shall be calculated in accordance with the said higher rate.
24. Where the Director has reason to believe that any goods liable Damaged goods. to a stock charge or import charge have been damaged, or were lost, destroyed or abandoned to the Customs while still under the control thereof, he shall reduce the charge or shall refund or grant exemption from the whole or part of it, as the case may be.
1) Kovetz Ha-Takkanot of 5733, pp. 574 and 1591. 2) Sefer Ha-Chukkim of 5712, p. 344; LSI vol. VI, p. 150.
33 CHAPTER SIX: FUEL CHARGE Definitions. 25. In this chapter - "fuel" means the goods specified in the Commodities and Services (Control) (Fuel Supply Service) Declaration, 5734-19741); "person in possession of fuel" means a person who owns or has possession or control of any fuel used or intended to be used by him for supply and includes a manufacturer, within the meaning of the Fuel Excise Law, 5718-19582).
Charge on 26. (a) A person in possession of fuel on the determining day shall possession pay a charge thereon at a rate as indicated hereunder: of fuel. (1) in respect of fuel at a fuel station — at a rate as speci• fied in the Third Schedule; (2) in respect of any other fuel — at a rate being the amount of the difference between the cost of the fuel according to the previous rate and the cost thereof calculated at the new rate. (b) Where a person in possession of fuel has financed the whole or part of its acquisition with a loan in foreign currency approved under the Currency Regulations, the Director of Fuel Administration at the Ministry of Finance may exempt him from the charge to an extent corresponding to the part of the loan which has not yet been repaid.
Time for 27. A charge under this chapter shall be paid by the 10th Cheshvan, payment of 5736 (15th October, 1975) in respect of fuel at a fuel station and by the fuel charge. 26th Kislev, 5736 (30th November, 1975) in respect of other fuel.
Submission 28. (a) A person liable to a charge under this chapter in respect of of fuel at a fuel station shall deliver to the Director, upon request but not inventories. later than the 30th Tishri, 5736 (5th October, 1975), a return of such particulars as he may direct of the fuel in his possession on the deter• mining day. (b) A person liable to a charge under this chapter in respect of other fuel shall deliver to the Director of Fuel Administration at the Ministry of Finance a return, within such time and containing such particulars as he may direct, of the fuel in his possession on the deter• mining day.
CHAPTER SEVEN: GENERAL PROVISIONS
Competent 29. For the purposes of this chapter, "competent authority" — authority. (1) in respect of a currency charge — means the Controller; (2) in respect of a stock charge, an import charge and a fuel charge on fuel at a fuel station — means the Director;
1) Kovetz Ha-Takkanot of 5734, p. 718; Kovetz Ha-Takkanot of 5735, p. 496. 2) Sefer Ha-Chukkim of 5718, p. 160; LSI vol. XII, p. 177.
34 (3) in respect of a fuel charge on other fuel — means the Director of Fuel Administration at the Ministry of Finance.
30. A charge under these Regulations shall be paid notwithstanding Import under the Encourage• the provisions of section 62 of the Encouragement of Capital Investments ment of Capital Law, 5719-19591). Investments Law.
31. The Taxes (Collection) Ordinance2) shall apply to the collection Collection. •of a charge and of other payments under these Regulations.
32. (a) A competent authority may by order prescribe times later Power to vary times of than those prescribed by these Regulations, or further times, for the payment and payment of a charge, as well as the place and modes of payment thereof, prescribe modes and he may also receive from the person liable to the charge an under• thereof. taking for its payment and security for the fulfilment of such undertaking. (b) The competent authority may, on such conditions as he may think fit, postpone the date of payment of the whole or part of a stock •charge or import charge. (c) The provisions of this regulation shall not apply to a currency charge.
33. (a) Where a competent authority has postponed the date of Payment of interest and payment of the whole or part of a charge, the person liable to the charge fine. :shall pay interest at the rate of 22 per cent per annum on the amount payment of which has been postponed, from the day originally prescribed for the payment of the charge to the day of actual payment. (b) Where a person liable to a charge does not pay the whole or part thereof at the time at which he is required to pay it and the compe• tent authority has not postponed the time for its payment, such person shall pay a fine at the rate of two per cent per month or fraction thereof on the amount not paid in time, from the day prescribed for the payment •of the charge to the day of actual payment. (c) Interest and a fine shall for the purposes of collection be treated as charges. (d) The competent authority may reduce the fine but its rate :shall not be less than 15 per cent per annum.
34. Where the whole or part of a currency charge is not paid at the Freezing of foreign time prescribed by these Regulations, the competent authority may, currency. pending its payment, prohibit the transfer of the ownership or possession of the working capital or foreign currency on which the charge is due.
1) Sefer Ha-Chukkim of 5719, p. 234; LSI vol. XIII, p. 258. 2) Laws of Palestine vol. II, p. 1399 (English Edition).
35 Freezing in 35. Where a dealer does not pay the whole or part of a stock charge, the case of stock charge, fuel charge or import charge at the time prescribed by these Regulations, fuel charge the competent authority may, pending its payment, prohibit the transfer or import of the ownership or possession of the goods on which the charge is.due charge. and any other transaction in respect thereof or, if the goods are in the possession or under the control of the person liable to the charge, their removal from one place to another.
Holding up 36. The Director may hold up the removal of goods of a person liable removal of goods. to a charge from the control of the Customs pending payment of the whole of the charge due from him under these Regulations on these or other goods or pending the submission of a return required to be sub• mitted under these Regulations.
Forfeiture 37. (a) Where any goods are not included in a return required to be and submitted under these Regulations, they shall be regarded as forfeited confiscation. under section 204 of the Customs Ordinance, and sections 188 to 193, 206 (a), 229 and 230 of that Ordinance shall apply mutatis mutandis to their seizure or release from forfeiture. (b) This regulation shall also apply to goods in respect of which, in a return as aforesaid, information has been given which is false in a material particular.
Immobilisation 38. (a) Where goods have been forfeited under regulation 37, the of goods. Director may transfer them to such place as he may direct or immobilise them in the hands of the person having possession thereof. (b) Where goods have been immobilised under subregulation (a), the person having possession thereof shall hand them over at the Direc• tor's request. If he does not do so, or hands them over in damaged con• dition, he shall be guilty of an offence under these Regulations unless he gives a reasonable explanation as to how the goods disappeared, or were damaged, owing to circumstances over which he had no control.
Fine. 39. (a) Where a person has not submitted a return of stock as pro• vided in Chapter Three by the 30th Shevat, 5736 (1st February, 1976), a fine of 20 per cent shall be added to the amount of the stock charge leviable from that person, and upon payment of the fine he shall not be prosecuted for the offence. (b) The Director may reduce the fine for special reasons which shall be recorded.
Power of 40. A person empowered in that behalf in writing by the competent inspection. authority may, for the purpose of implementing, or of preventing or discovering offences under these Regulations, enter any place in order to carry out an inspection of stock and books and other documents and to seize any thing likely to serve as evidence at a trial.
.36 41. The provisions of the Indirect Taxes (Overpayments and Under• Application payments) Law, 5728-1968!) shall apply to an import charge and a stock of Indirect Taxes Law. charge.
42. (a) . Every person, except a person exempt under any law from Delivery of information, giving evidence in court, shall, at the request of a competent authority, vouchers and deliver any information, books, vouchers and other documents which, other documents. in the opinion of such authority, are calculated to ensure the implemen• tation of these Regulations. (b) Notwithstanding the provision of subregulation (a) and without prejudice to the provisions of any law as to privileged evidence, a competent authority shall not on his own motion request the delivery of information by the spouse, child or parent of a dealer or by an em• ployee employed in his affairs on the basis of personal trust.
43. Where any goods were removed from the control of the Customs Determination of normal before the determining day, but the taxes, within the meaning of regu• price in certain lation 9, are paid on or after that day, then, for the purpose of determining cases. such taxes, the normal price of the goods shall be as defined in section 130 of the Customs Ordinance, with an addition of 10 per cent. For the pur• poses of this regulation, "goods" includes goods imported into Israel for which the consideration or part thereof was paid otherwise than by means of an allocation.
44. (a) A person who does any of the following: Offences and penalties. . (1) for the purposes of these Regulations delivers to a com• petent authority any information, book, voucher or other document which is false in a material particular; (2) conceals, destroys, alters or refuses to deliver any in• formation, book, voucher or other document which he is required to deliver under these Regulations; (3) obstructs or prevents a competent authority or his agent from exercising his powers under these Regulations; (4) commits a fraudulent act in order to evade payment of a charge to which he is liable; (5) infringes any of the provisions of these Regulations or any provision or condition laid down by virtue thereof, is liable to imprisonment for a term of three years or a fine of 100,000 pounds: Provided that if the offence is committed in connection with a currency charge, the fine shall be three times the value at the new rate of the foreign currency in connection with which the offence is committed or 100,000 pounds, whichever is more, and if the offence is committed in connection with an import charge, stock charge or fuel charge, the fine
1) Sefer Ha-Chukkim of 5728, p. 168 ; LSI vol. XXII, p. 178.
37 shall be five times the value of the goods in connection with which the offence is committed or 100,000 pounds, whichever is more. (b) Where an offence under these Regulations is committed in the course of the business of a person liable to a charge by any clerk, worker, factor, agent or representative of such person, such person shall bear responsibility unless he proves that he took all reasonable steps to ensure compliance with these Regulations or that the offence was com• mitted without his knowledge. (c) Where an offence under these Regulations is committed by a body of persons, every person who at the time of its commission was an active director or a partner, accountant or responsible official of that body shall also be responsible for the offence unless he proves that he took all reasonable steps to ensure compliance with these Regulations or that the offence was committed without his knowledge. Composition. 45. Where a competent authority is satisfied that a person has contra• vened any of the provisions of these Regulations, he may, with the consent of that person, accept from him a monetary composition not exceeding the highest fine permitted to be imposed for the offence. Where an in• formation has been filed against a person, no composition for the offence shall be accepted so long as the Attorney-General has not given notice of a stay of proceedings.
Prices 46. (a) A fuel marketing company and a gas marketing company equalisation shan pay a charge on fuel products of an amount equal to the difference ge' between the maximum price of fuel products and the cost of fuel products, (b) For the purposes of this regulation — "fuel products" means the products specified in the Schedule to the Commodities and Services (Control) (Maximum Prices of Fuels) Order, 5736-19751); "maximum price of fuel products" means the maximum price prescribed for fuel products either by general or by individual order; "fuel marketing company" means a company importing crude petroleum or products thereof and marketing fuel pro• ducts in Israel; "gas marketing company" means a company marketing petro• leum gas and possessing installations for the storage and filling of condensed gas in Israel; "cost of fuel products" means all expenses connected with the acquisition, transport, insurance, storage, refining, pro• duction and marketing of fuel, together with a profit, as fixed under an agreement between the Director of Fuel Admi-
i) Kovetz Ha-Takkanot of 5736, p. 138.
38 nistration at the Ministry of Finance and the fuel marketing companies and gas marketing companies or, in the absence of such agreement, as fixed by the Director of Fuel Admi• nistration at the Ministry of Finance, and together with the fuel charge under regulation 2 of the Emergency (Rate of Compulsory Payments on Fuel Products) Order, 5735-19741). (c) The Minister of Finance may, by order, exempt fuel products sold to those specified in the Schedule to the Customs, Excise and Pur• chase Tax (Abolition of Special Exemption) Order, 5717-19572), from the whole or part of the charge under this regulation.
47. These Regulations shall be cited as the Emergency Regulations Citation. (Arrangements Following Change in Rate of Currency), 5736-1975.
FIRST SCHEDULE (Regulation 1) Kinds of Currency Dollars of the U.S.A. Norwegian kroner Canadian dollars Dutch guilders Pounds sterling German marks Australian dollars Finnish markkaa South African rands Austrian schillings Swiss francs Belgian francs French francs Italian lire Danish kroner Jordanian dinars Swedish kronor Japanese yens
SECOND SCHEDULE (Regulation 9) In this Schedule — (a) "the Customs Tariff" means the Schedule to the Customs Tariff and Exemption Ordinance, 1937 3); (b) the products specified in Column I shall be taken as defined in the item of the Customs Tariff indicated in Column II.
!) Kovetz Ha-Takkanot (She'urei Makach (Rates of Customs Duty, Purchase Tax and Compulsory Payments)) of 5735, p. 25. 2) Sefer Ha-Chukkim of 5717, p. 141; LSI vol. XI, p. 149. 3) P.G. of 1937, Suppl. I, p. 215 (English Edition); Sefer Ha-Chukkim of 5725, p. 118 — LSI vol. XIX, p. 115; Kovetz Ha-Takkanot {She'urei Makach) of 5735, p. 639.
39 Column I Column II Product Item of Customs Tariff Sausages 16.01—9900 Caviar and substitutes thereof 16.40—1100 Salmon and other preserves of the "Lachs" type.. 16.04—2010 Chocolate 18.06—9900 Wines 22.05 Vermouths and other flavoured wines 22.06 Whiskey 22.09—2000 Other spirits 22.09—9900 Cigarettes 24.02—1000 2000׳—Cigars and cigarillos 24.02 Manufactured tobacco 24.02—3000 Footwear 64.01—9900 Footwear 64.02—9900 Footwear 64.03 Footwear 64.04 Unglazed floor tiles and wall tiles 69.07 Glazed floor tiles and wall tiles 69.08 Sinks, wash basins, water closet pans, baths 69.10—1000 Similar sanitary fixtures 69.10—9900 Tableware and other domestic articles, of china.. 69.11 Tableware and other domestic articles, of pottery 69.12 Tableware and other domestic articles, of glass .. 70.13 Gas cooking stoves and gas baking ovens 73.36—9910 Air conditioners 84.12 Refrigerators 84.15—2010 Domestic laundry wringers 84.18—1011 Dish washing machines 84.19—1000 Domestic laundry driers 84.40—1010 Washing machines 84.40—3010 Sewing machines 84.41—1021 Sewing machines 84.41—1022 Arms for sewing machines 84.41—1031 Arms for sewing machines 84.41—1033 Typewriters 84.51-9900 Accounting machines 84.52—3000 Calculating machines 84.52—9900 Other office machines 84.54 except items 6000 and 7000 Drill with electric motor 85.05—1000 Hand tools, with electric motor. 85.05—8000 Domestic appliances with electric motor 85.06 Electric water heaters and space heaters 85.12—1096 Electric cooking stoves and baking ovens 85.12- -9910 Microphones, loudspeakers, electric amplifiers 85.14- -1090 Microphones, loudspeakers, electric amplifiers 85.14—9900 Sound receivers 85.15—4010 Sound receivers 85.15- -4020 Sound receivers 85.15—4030 Television receivers 85.15- -4040 Photographic cameras and flashlight apparatus 90.07- -9920 Cinematographic cameras 90.08- -1090 Cinematographic projectors, non-commercial.. 90.08- -2019 Cinematographic projectors, non-commercial.. 90.08- -2090 Image projectors 90.09- -1090 Copying apparatus for use in offices 90.10- -2090 Wrist-watches and pocket-watches 91.10- -9990 91.02 Other clocks and watches 91.04--3000 91.04--9900 Watch movements, assembled 91.07 Clock movements, assembled 91.08--9900 Pianos 92.01- -2090 Other string instruments 92.02 Accordions and similar instruments 92.04 Wind instruments 92.05 Drums and xylophones 92.06--2000 Other percussion instruments 92.06--9900 Electronic musical instruments 92.07 Gramophones and record-players 92.11- -9910 Other sound recorders and sound reproducers 92.11- -9990 Gramophone records f 92.12--1040 -1050 92.12--2012 1 92.12- 92.12--2014 Magnetic tapes. 92.12--2015 92.12--2019 92.12--2090 Tape recordings 92.12--9900 Chairs and other seats. 94.01 Other furniture 94.03 Wheeled toys 97.01 Dolls 97.02 Other toys 97.03--9900
41 THIRD SCHEDULE (Regulation 26) Amount of charge Fuel Product Unit (in pounds) Petrol 83 octane Litre 0.50 Petrol 94 octane Litre .. 0.60 Solar at fuel station Litre 0.21 Condensed petroleum gas — 12 kg. container Container 6.00 125 kg. container Container 6.25 In bulk Ton 500.00 Kerosene Litre (at fuel station) 0.25
YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State
(No. 18) EMERGENCY REGULATIONS (COMPULSORY PAYMENTS) (AMENDMENT AND EXTENSION OF VALIDITY) LAW, 5736—1975*
1. In regulation 7(c) of the Emergency Regulations (Compulsory Amendment of Payments) 5718—1958!) (hereinafter referred to as "the Regulations"), regulation 7. the words "from the time prescribed for the payment of the charge under regulation 6(a) " shall be inserted before the words "until the date of actual payment".
Amendment of 2. In regulation 18(c) of the Regulations, the words "and for the pur regulation 18. pose of collection, the said amount and the interest thereon shall be treated as a charge" shall be added at the end.
* Passed by the Knesset on the 18th Tevet, 5736 (22nd December, 1975) and pu blished in Sefer Ha-Chukkim No. 790 of the 28th Tevet, 5736 (1st January, 1976)» p. 48; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1218 of 5736, p. 104. 1) Sefer Ha-Chukkim of 5724, p. 175 — LSI vol. XVIII, p. 173; Sefer Ha-Chukkim of 5726, p. 31 — LSI vol. XX, p. 27; Sefer Ha-Chukkim of 5727, p. 21 — LSI vol. XXI, p. 13; Sefer Ha-Chukkim of 5728, p. 156 — LSI vol. XXII, p. 180; Sefer Ha-Chukkim of 5729, pp. 138 and 246 — LSI vol. XXIII, pp. 150 and 272; Sefer Ha-Chukkim of 5730, p. 49 — LSI vol. XXIV, p. 44; Sefer Ha-Chukkim of 5733, p. 84 — LSI vol. XXVII, p. 79; Sefer Ha-Chukkim of 5734, p. 90 — .S7vol.XXVIII,p.91״I
42 3. The validity of the Regulations is hereby extended until the 21st Extension of •׳ 4. This Law shall come into force on the 28th Tevet, 5736 (1st January, Commencement. 1976). YITZHAK RABIN Prime Minister EFRAYIM KATZIR President of the State (No. 19) INSPECTION OF SCHOOLS (AMENDMENT No. 3) LAW, 5736—1975* 1. In section 36 of the Inspection of Schools Law, 5729—19691), sub- Amendment of section (c) is hereby repealed. section 36. 2. This Law shall have effect from the 25th Iyar, 5725 (1st September, Commencement. 1975). YITZCHAK RABIN AHARON YADLIN Prime Minister Minister of Education and Culture EFRAYIM KATZIR President of the State (No. 20) WORLD ZIONIST ORGANISATION — JEWISH AGENCY FOR ISRAEL (STATUS) (AMENDMENT) LAW, 5736—1975** 1. In the World Zionist Organisation — Jewish Agency for Israel Addition of (Status) Law, 5713—19532) (hereinafter referred to as "the principal section 2A. Law"), the following section shall be inserted after section 2: * Passed by the Knesset on the 18th Tevet, 5736 (22nd December, 1975) and published in Sefer Ha-Chukkim No. 790 of the 28'th Tevet, 5736 (1st January, 1976), p. 48; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1199 .׳ of 5735, p.426 1) Sefer Ha-Chukkim of 5729, p. 180 — LSI vol. XXIII, p. 195; Sefer Ha-Chukkim of 5730, p. 150 — LSI vol. XXIV, p. 157; Sefer Ha-Chukkim of 5732, p. 33 — iS7vol.XXVI,p. 36. **) Passed by the Knesset on the 19th Tevet, 5736 (23rd December, 1975) and pub lished in Sefer Ha-Chukkim No. 790 of the 28th Tevet, 5736 (1st January, 1976), p. 49; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1115 of 5734, p. 162. 2) Sefer Ha-Chukkim of 5713, p. 2; LSI vol. VII, p. 3. 43 "2A. The. Jewish Agency for Israel is an independent voluntary association consisting of the World Zionist Organisation and other organisations and bodies. It operates in the State of Israel in fields chosen by it with the consent of the Government.". Replacement 2. Section 3 of the principal Law shall be replaced by the following of section : section 3. "3. The World Zionist Organisation and the Jewish Agency for Israel take care of immigration as before and conduct absorption and settlement projects in the State.". Amendment 3. In section 4 of the principal Law, the words "the World Zionist of section 4. Organisation as the authorised agency which will continue to operate" shall be replaced by the words "the World Zionist Organisation and the Jewish Agency for Israel as the authorised agencies which will continue to operate". Addition of 4. The following section shall be inserted after section 6 of the prin• section 6A. cipal Law: "6A. The provisions of sections 5 and 6 shall apply mutatis mutan• dis•to the Jewish Agency for Israel.". Replacement of 5. Section 7 of the principal Law shall be replaced by the following section 7. section: "7. Details of the status of the World Zionist Organisation and the Jewish Agency for Israel and the form of their cooperation with the Government shall be determined by Covenants to be made in Israel between the Government and each of these two bodies.". Amendment of 6. In section 8 of the principal Law — section 8. (1) the words "with the World Zionist Organisation" shall be inserted after the words "the Covenant"; (2) the subsection mark "(a)" shall be inserted after the figure "8" and the following subsection shall be added after subsection (a): "(b) The Covenant with the Jewish Agency for Israel shall provide for full cooperation and coordination on its part with the State of Israel and its Government in accordance with the laws of the State.". Replacement of 7. Section 9 of the Law shall be replaced by the following section : section 9. "9. Two committees shall be set up for the coordination of acti• vities between the Government and the World Zionist Organisation and the Jewish Agency for Israel in the spheres in which each of them is to operate according to the Covenant made with it. The tasks of the committees shall be determined by the Covenants.". 44 8. In section 10 of the principal Law, the words "The Covenant and Amendment of any variation or amendment thereof" shall be replaced by the words "The section 10. Covenants and any variation or amendment thereof". 9. Section 11 of the principal Law shall be replaced by the following Replacement of section 11. section : "11. The World Zionist Organisation and the Jewish Agency for Israel are juristic persons and may enter into contracts, acquire, hold and relinquish property and be parties to any legal or other proceedings.". 10. In section 12 of the principal Law, the words "The Executive and Amendment of section 12. its funds and other institutions" shall be replaced by the words "The World Zionist Organisation and the Jewish Agency for Israel and their respective funds and other institutions". 11. The principal Law shall be renamed the World Zionist Organisa• Change of title. tion and Jewish Agency for Israel (Status) Law, 5713—1952. 12. This Law shall have effect from the 28th Sivan, 5731 (21st June, Commencement. 1971). YITZCHAK RABIN Prime Minister EFRAYIM KATZIR President of the State (No. 21) CAPACITY AND GUARDIANSHIP (AMENDMENT No. 4) LAW, 5736—1975* 1. In the Capacity and Guardianship Law, 5722—19621), the follow- Addition of ing section shall be inserted after section 28 : section 28A. "Right of 28A. Where one of the parents of a minor has died, the bereaved Court may issue directions as to contact between the parents. minor and the parents of the deceased.". YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State Passed by the Knesset on the 19th Tevet, 5736 (23rd December, 1975) and pub• lished in Sefer Ha-Chukkim No. 790 of the 28th Tevet, 5736 (1st January, 1976), p. 50; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1202 of 5735, p. 434. Sefer Ha-Chukkim of 5722, p. 120 — LSI vol. XVI, p. 106; Sefer Ha-Chukkim of 5725, p. 114— LSI vol. XIX, p. 113; Sefer Ha-Chukkim of 5730, p. 125— LSI vol. XXIV, p. 128; Sefer Ha-Chukkim of 5733, p. 32 — LSI vol. XXVII, p. 29. 45 (No. 22) VALUE ADDED TAX LAW 5736—1975* CHAPTER ONE: DEFINITIONS Definitions. !. In this Law — "hotel" includes a boarding-house, rest-house, guest-house or the like in which overnight accommodation is generally provided for at least five persons for consideration; "District Court" means the District Court in whose area of jurisdiction the principal place of business or the registered office of the ap• pellant is situated; "the Director" means the Director of Customs and Excise; "the tax" means value added tax, wage tax or wage-and-profit tax; "person liable to tax" means a dealer, a non-profit organisation or a financial institution; "invoice" means a transaction invoice or a tax invoice; "tax invoice" means an invoice issued under section 47; "transaction invoice" means an invoice required to be issued under section 45; "goods" includes — (1) timber, saplings, flowers, crops and the like sold separately from the land; (2) a right, an interest and any other intangible property, and inter alia, know-how, but does not include a right in immovable property or in a body corporate nor securities or negotiable docu• ments or any rights therein; "insurer" means an insurer within the meaning of the Insurance Business (Control) Law, 5711—19511), but does not include a benefit fund exempt from income tax under section 9 (2) of the Income Tax Ordinance2); "financial institution" means — (1) a company or cooperative society carrying on the business of receiving moneys on current account in order to make payments therefrom on demand by cheque; * Passed by the Knesset on the 25th Tevet, 5736 (29th December, 1975) and pub• lished in Sefer Ha-Chukkim No. 791 of the 4th Shevat, 5736 (6th January, 1976), p. 52; the Bill and an Explanatory Note were published in Hatzd'ot ChokNo. 1178 of 5735, p. 239. 1) Sefer Ha-Chukkim of 5711, p. 221; LSI vol. V, p. 142. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145. 46 (2) a company lawfully using the word "bank" as part of its name, but does not include a company the name of which refers to a company or cooperative society to which paragraph (1) applies; (3) a financial institution, within the meaning of the Bank of Israel Law, 5714—19541), to which the liquidity directions under the said Law apply; (4) an insurer; (5) a class of persons designated by the Minister of Finance; "non-profit organisation" means — "(1) the State, a local authority or an association of towns; (2) an incorporated or unincorporated body of persons which does not carry on its business for profit and which is not a financial institution; (3) a body corporate established by virtue of law and not re• gistered as a company, cooperative society or partnership; (4) a benefit fund exempt from income tax under section 9 (2) of the Income Tax Ordinance; "turnover of a dealer" means the total amount of the value, within the meaning of section 7, of his transactions in the preceding tax year or, if the amount is unknown or he carried on business only during part of that year, the amount likely to be received in the current tax year, calculated in accordance with directives prescribed by the Minister of Finance; for this purpose, "transactions" does not include the sale of property used by the dealer in his business but the sale of which is not part of the same; "sale", in relation to any property, includes the letting or hire-purchase thereof, the grant of a right of use thereof for consideration, the grant of a right therein and the use thereof for personal requirements and includes the expropriation, forfeiture or confiscation thereof for consideration, as well as the bestowal thereof as a gift, including a gift to an employee, and, in relation to immovable property, in• cludes also a real estate association act, within the meaning of the Land Appreciation Tax Law, 5723—19632); "input tax" means the value added tax imposed on a sale of property to a dealer, the import of property by a dealer or the rendering of services to a dealer, all for the purposes of his business or for use in the same; "immovable property" includes a real estate association right within the meaning of the Land Appreciation Tax Law, 5723—1963; 1) Sefer Ha-Chukkim of 5714, p. 192; LSI vol. VIII, p. 163. 2) Sefer Ha-Chukkim of 5723, p. 156; LSI vol. XVII, p. 193. "property" means goods or immovable property; "dealer" means a person other than a non-profit organisation or a financial institution who sells any property or renders any service in the course of his business or who sells any property or renders any service 'occasionally, the sale or service being of a commercial nature; "petty dealer" means a dealer in whose business not more than two persons are employed and whose turnover in the whole of his business does not exceed 350,000 pounds or a greater amount prescribed by the Minister of Finance, but does not include a dealer registered as an authorised dealer by virtue of section 57 or 58 nor a dealer belonging to a class of dealers in respect of whom the Minister of Finance has prescribed that they shall be registered as authorised dealers; for this purpose — (1) owners, partners and members of their families who them• selves work in a business shall be regarded as employed; (2) an apprentice or a person who works not more than four hours a day shall be regareded as a semi-employed person; (3) a person who works in the business during part of the tax year shall be regarded as a person employed part-time in the proportion which the period of his employment bears to a whole year; "authorised dealer" means a dealer, other than a petty dealer, registered under section 52; 'transaction" means the sale of any property or rendering of any service by a dealer in the course of his business and includes the sale of property used by a dealer in his business but the sale of which is not part of the same, as well as an occasional sale of property or oc• casional rendering of a service, the sale or service being of a com• mercial nature; 'business" includes a profession and a vocation; 'purchaser" includes the recipient of a service; 'profit" means chargeable income, within the meaning of the Income Tax Ordinance, before the set-off of losses from tax years preceding the tax year in which the income is received and before deduction of the tax on wages under section 4 (b); it does not include income from dividend received from a financial institution, but it includes income from interest or dividend in respect of which exemption from income tax has been granted under any law; 'use for personal requirements" means — (1) use of any property of a business otherwise than for the purposes thereof by a person who has a share in the ownership or management thereof or is employed therein; (2) use for the purposes of a business, on conditions prescribed by the Minister of Finance, of property thereof of a kind so pre• scribed; "service" means the doing of anything for another for consideration, other than a sale, and in the case of a body of persons includes doing as aforesaid for the members thereof without consideration or for a membership fee; the work of an employee shall not be regarded as a service to his employer; "wage" means work income within the meaning of the Income Tax Ordinance and includes a pension paid by the employer to a former employee; "tax year" has the same meaning as in the Income Tax Ordinance. CHAPTER TWO: IMPOSITION AND RATE OF TAX 2. Value added tax shall be imposed on a transaction in Israel and on Imposition and rate of value the import of goods at a single rate, being a proportion of the value of the added tax. transaction or goods, as the Minister of Finance shall prescribe by order after consultation with the Finance Committee of the Knesset. 3. The provisions of the Customs and Excise Duties (Variation of Application of Tariff) Law, 5709—19491), shall apply mutatis mutandis to orders under the Customs and Excise Duties section 2 as if they were orders under section 1 of the said Law, with the (Variation of proviso that the words "two months" shall be replaced by the words Tariff) Law. "two weeks" and that the time between Knesset terms shall be taken into account. 4. (a) A wage tax shall be imposed on the activity in Israel of a non• Imposition and rate of tax profit organisation in percentages of the wage paid by it, as the Minister on non-profit of Finance shall prescribe by order with the approval of the Knesset. organisations and financial (b) A wage-and-profit tax shall be imposed on the activity in institutions. Israel of a financial institution in percentages of the wage paid and profit derived by it, as the Minister of Finance shall prescribe with the approval of the Knesset. A loss sustained by a financial institution in any tax year may be set off against the wages paid by it in that tax year. 5. The Minister of Finance may designate classes of objects of art Value added tax and used property the tax on which when sold by a person whose business on objects of art and used is the sale of such property shall not be a proportion of their full value property. but of the difference between their value at the time of sale and their value at the time of acquisition. 1) Sefer Ha-Chukkim of 5709, p. 154; LSI vol. Ill, p. 69. 49 Collection of 6. Where tax is imposed on a transaction, or the rate of the tax tax from thereon increased, after the transaction is agreed upon, the dealer may purchaser. require the purchaser to pay to him the amount of the tax or, additional tax to which the dealer has become liable unless otherwise provided by agreement or by any law dealing with price control. CHAPTER THREE: VALUE Value of 7. The value of a transaction is the consideration agreed upon, transaction. including — (1) every tax, charge, fee or other compulsory payment imposed on the transaction otherwise than under this Law, unless imposed by law on the purchaser, but not including tax on capital profits under the Income Tax Ordinance and tax under the Land Ap• preciation Tax Law, 5723—1963; (2) all other expenditure incurred in carrying out the transaction and required to be reimbursed to the seller by the purchaser under the sale agreement, including commission or interest in the case of payment by instalments and including the value of packaging. Value of 8. In a transaction involving both property and a service, the aggregate transaction involving sale value thereof shall be the value of the transaction. and service. Value of 9. (a) The value of a transaction referred to in section 19 (a) is the transaction to commission or other consideration received by the person who renders which section 19 applies. the service from the person who supplies him with the property to be sold. (b) The value of a transaction referred to in section 19 (b) is the difference between the price at which the property is bought and the price at which it is sold. Transactions 10. Where the value of a transaction is affected by a special relation• in special ship between the parties or where no value has been fixed or where the cases. whole or part of the consideration is not in money, the value shall be the price which would be paid under ordinary conditions. Where the value cannot be determined in this manner, it shall be the cost of the property or service with the addition of the profit usual in the trade concerned. Value of 11. (a) The value of imported goods is the value thereof, as provided imported goods. in section 130 of the Customs Ordinance1), at the time of payment of the tax, with the addition of customs duty and every other tax or charge ap• plying to imports. (b) Where goods exported from Israel are repaired, renovated or improved while outside Israel and subsequently re-imported to Israel, 1) DineiMedinat Yisrael{Nusach Chadash) No. 3, p. 39; TVTvol. I, p. 51. 50 their value on re-importation is the value of the repair, renovation or improvement with the addition of the payments referred to in sub• section (a). 12. (a) Any donation, assistance or other aid received by a dealer Provision as to donation, (all hereinafter referred to as "receipts") shall be regarded as part of the assistance value of his transactions. This provision shall not apply to classes of and the like. receipts or classes of dealers designated by the Minister of Finance. (b) The Minister of Finance may prescribe how receipts shall be dealt with as regards invoices, deductions, entry in the account-books of the dealer and the like. 13. The Minister of Finance may prescribe rules as to — Rules for calculation (1) the calculation of the value under section 10; of value. (2) the calculation of the value of packaging; (3) the circumstances and conditions under which a sum paid as deposit or security shall be regarded as part of the value of the transaction in which it is paid. CHAPTER FOUR: PLACE OF TRANSACTION 14. Property shall be regarded as sold in Israel if it is in Israel at the Place of sale. time of its delivery to the purchaser or if it has been exported from Israel or, in the case of intangible property, if the seller is a resident of Israel. 15. A service shall be regarded as rendered in Israel if it is wholly or Place of service for the most part rendered in Israel or if it is rendered by a person whose or activity. principal place of business is in Israel and the service is of the kind rendered by him by way of business, and an activity shall be regarded as conducted in Israel if it is wholly or for the most part conducted in Israel or if it is conducted by a person the principal place of whose activity is in Israel and the activity is within the scope of his activity; but the Mi• nister of Finance may prescribe, generally or in respect of a particular service or activity, that only such part of the service or activity shall be regarded as rendered or conducted in Israel as is actually so rendered or conducted. CHAPTER FIVE: PERSONS LIABLE TO PAY THE TAX 16. The following are liable to pay the tax: Persons liable to pay the tax. (1) in the case of a sale, the seller; (2) in the case of a service, the person rendering it; (3) in the case of import, the owner of the goods, within the meaning of the Customs Ordinance; (4) in the case of the activity of a non-profit organisation or a financial institution, the organisation or institution. 51 Agent. 17. (a) Where a dealer sells any property or renders a service to a purchaser through an agent acting in his name, the dealer shall be regarded as the seller or as rendering the service and the agent as render• ing a service to the dealer. (b) Where a dealer sells in his own name any property of a person who has contracted with him for this purpose, the dealer shall be regarded as selling the property to the purchaser, and that person as having sold it to the dealer. Executor, 18. Where a dealer, being an executor, liquidator, receiver, custodian, liquidator, receiver and administrator of the estate of a deceased person, or the like, sells by virtue the like. of his office any property of another, the owner of the property shall be regarded as the seller, and the actual seller shall be regarded as rendering a service to the person whose property he sells. Seller of stamps, 19. (a) A dealer whose business is the sale of postage stamps, tele• telephone tokens, phone tokens, revenue stamps, stamped promissory note forms and the promissory notes, securities and like at the price stated thereon shall be regarded as rendering a service the like. to the person who supplies them to him for sale. (b) A dealer whose business is the sale of securities, including securities issued by the Government or under a special Law, or the sale of foreign currency shall be regarded as rendering a brokerage service between the person who sells them to him and the person who buys them from him. Permission to 20. A person not liable to pay the tax may, with the consent of the pay tax instead of person Director and on conditions prescribed by him, take upon himself to pay liable thereto. it, and from the date of such consent he shall be treated as the person liable. Imposition of 21. The Minister of Finance may determine classes of transactions in liability on which the purchaser shall be liable to pay the tax, and he may also purchaser. determine that other duties which according to the provisions of this Law and the regulations thereunder fall on particular classes of persons liable to the tax shall fall on the purchaser; but no such determination as afore• said shall release the seller or person rendering the service from his duties under this Law or the regulations thereunder, except the duty of payment and of making periodical returns. CHAPTER SIX: DATE OF ACCRUAL OF LIABILITY TO TAX Accrual date 22. In the case of a sale of goods, liability to tax shall accrue upon incase of sale delivery of the goods to the purchaser. If the goods are delivered in of goods. instalments, liability to tax on each instalment shall accrue when the same is delivered. For this purpose, "delivery" has the meaning assigned to this term in section 8 of the Sale Law, 5728—19681). 1) Sefer Ha-Chukkim of 5728, p. 98; LSI vol. XXII, p. 107. 52 23. Where a person delivers any property to another for sale, and it is Accrual date agreed in writing that not more than ten per cent of the consideration, in case of goods on or such higher percentages as the Minister of Finance may prescribe for consignment. particular classes of dealers or transactions, shall be paid before the other sells the property and that if he does not sell it he may return it, liability to tax on the sale of the property by the first-mentioned person to the other shall accrue when the other sells it. The same shall apply to a sale as aforesaid in respect of which the agreement is made orally if it is proved to the satisfaction of the Director that according to commercial usage it belongs to a class of sales made on the said conditions without a written agreement. 24. In the case of a service, liability to tax shall accrue when the service Accrual date in case of is rendered. Where the service is rendered in instalments, liability to tax service. on each instalment shall accrue when the same is rendered, and when the service is rendered over a lengthy period and is not separable into parts, liability shall accrue when the rendering thereof is complete. 25. In the case of use for personal requirements, liability to tax shall Accrual date in case of accrue when the goods are taken into use as aforesaid. use for one's own requirements. 26. In the case of imported goods, liability to tax shall accrue when the Accrual date in case of goods are cleared from the control of the Customs. imported goods. 27. In the case of expropriation, forfeiture or confiscation, liability Accrual date in case of to tax shall accrue upon payment of the compensation or.consideration. expropriation. 28. (a) In the case of a transaction in immovable property, liability Accrual date to tax shall accrue when the property is placed at the purchaser's disposal in case of transaction or made available for use by him or registered in his name in a register in immovable kept under law, whichever is the earliest. property. (b) In the case of building operations, liability to tax shall ac• crue upon termination of the work or when the property on which the work is carried out is placed at the purchaser's disposal or made available for use by him, whichever is the earliest. Where part of the property is at any time placed at the purchaser's disposal, liability in respect of that part shall accrue at that time. (c) In this section, "building operations" includes excavation, demolition, sewerage and drainage work, pipelaying, road and highway construction, land reclamation and the like. 29. Notwithstanding anything provided elsewhere in this chapter — Accrual date in special (1) where, in the case of a service rendered over a lengthy period cases. and not separable into parts or of a transaction to which section 28 53 applies or of some other class of transactions determined by the Minister of Finance, any amounts are paid on account of the consideration before the accrual date under this chapter, liability to tax in respect of each amount so paid shall accrue at the time of its payment; (2) the Minister of Finance may determine classes of transactions, including transactions referred to in paragraph (1), in which liability to tax shall accrue upon receipt of the consideration in respect of the amount received. CHAPTER SEVEN: NIL RATE AND EXEMPTIONS (a) The rate of the tax on the following transactions shall be nil: (1) the sale of goods — other than goods referred to in section 33 — to a person abroad if an export entry or some other document approved for this purpose by the Director has been passed for them, and the sale of intangible property or rendering of a service to a person abroad; for this purpose, "sale to a person abroad" includes the sale of property with a view to the transfer thereof to a licensed warehouse, within the meaning of the Customs Ordinance, ap• proved for this purpose by the Director and the sale of goods being in a warehouse as aforesaid to a person leaving Israel; (2) the rendering of a service abroad by a dealer whose principal place of business is in Israel; (3) overnight accommodation or residential accommodation of a tourist at a hotel; letting a private motor vehicle to a tourist for self-driving, there being a permit by the Traffic Controller to let it for self-driving; transportation of a tourist in a private motor vehicle, or a bus, intended for the transportation of passengers for sightseeing and excursions; transportation of a tourist in an aircraft from one place in Israel to another; in this paragraph, "tourist" means a tourist resident abroad; (4) the sale of goods to a person entitled by reason of his entry into Israel to acquire them with full exemption from purchase-tax; (5) a transaction on which foreign travel tax has been imposed or which has been exempted therefrom; (6) the transportation of cargo from or to Israel by air or sea; (7) the sale, letting or chartering of vessels or aircraft used for the transportation of passengers or cargo, of a class free from customs duty on import; (8) the sale of fruit and vegetables of kinds determined by the Minister of Finance which have not undergone any processing;, for this purpose, cleaning, selection, packing, de-greening, storage and refrigeration shall not be regarded as processing. (b) A person to whom the nil rate applies shall, for the purpose of this Law and regulations thereunder, be treated as liable to tax. Exemption of 31. The following transactions are exempt from tax: certain (1) residential letting for a period not exceeding ten years, transactions. other than letting for residential accommodation at a hotel; (2) letting or delivery of immovable property for key-money within the meaning of the Tenants' Protection Law (Con• solidated Version), 5732—19721); (3) transactions of a petty dealer whose turnover is less than 20,000 pounds or a greater amount prescrib ed by the Minister of Finance; (4) the sale of property in respect of which, by virtue of section 44, no input tax is deductible; if it is prescribed that part of the input tax may be deducted such part of the tax shall be paid as bears to the whole of the tax the same proportion as the deductible part of the input tax bears to the whole of the input tax. 32. The import of the following goods is exempt from tax: Exemption of imported (1) goods imported by a person who by reason of his goods. entry into Israel is fully exempt from the customs duty thereon; (2) goods re-imported into Israel after being exported therefrom, no repair, renovation or improvement having been carried out thereon whilst abroad; (3) gift parcels the import of which is fully exempt from customs duty; (4) original works of art the import of which is exempt from customs duty. 33. The import and export of unset diamonds and precious stones of Exemption of precious a kind exempt from customs duty, and any transaction therein with a stones. dealer who effects it in the course of a business concerned solely with them, are exempt from tax. 34. (a) The Minister of Finance may exempt the following goods Power to exempt or from the whole or part of the tax: to apply (1) goods to be exempted from indirect taxes, or part there• nil rate. of, under an international convention to which Israel is a party; (2) goods imported non-permanently; (3) goods the import of which is fully exempt from cus• toms duty. 1) Sefer Ha-Chukkim of 5732, p. 176; LSI vol. XXVI, p. 204. 55 (b) The Minister of Finance may exempt from tax, or apply the nil rate to, the import of goods by, or the sale of goods or the rendering of services to, persons specified in the Schedule to the Customs, Excise and Purchase Tax (Abolition of Special Exemption) Law, 5717—19571). Exemption of 35. A non-profit organisation which pays its employees aggregate an• certain nual wages not exceeding 48,000 pounds or a greater amount prescribed non-profit organisations. by the Minister of Finance is exempt from tax. Power to subject 36. The Minister of Finance may subject any exemption or the ap• exemption and nil rate to plication of the nil rate to such conditions as he may see fit. conditions. Inapplicability 37. The provisions of any law exempting from indirect tax shall not of exemption apply to tax under this Law unless the Knesset otherwise prescribes by under other law. resolution. CHAPTER EIGHT: DEDUCTION OF INPUT TAX Deduction of 38. A dealer is entitled to deduct from the tax to which he is liable the tax paid on input tax included in a tax invoice validly issued to him or in an import input. entry or in some other document approved by the Director for this pur• pose; the import entry or other document must name the dealer as the owner of the goods. Refund. 39. Where the input tax in a particular period of return under section 67 exceeds the value added tax to which the dealer is liable in respect of his transactions in that period, the excess shall be refunded to him within one month after receipt of the return. Input tax 40. Input tax included in tax invoices or import entries issued to a prior to dealer before he is registered under section 52 is not deductible. registration. Input used 41. Tax on input used in a tax-exempt transaction shall not be deduct- for tax-exempt ed. transaction. Restriction 42. The Minister of Finance may prescribe a maximum rate of input as to tax which a petty dealer shall be entitled to deduct in a particular period of deduction by return, and he may prescribe different rates for different classes of petty petty dealer. dealers. The balance of input tax not deducted may be deducted in sub• sequent periods of return, but the deduction shall in no period exceed the prescribed rate. Reduction 43. Where after the purchaser has deducted the tax on any transaction by reason of as input tax the transaction is cancelled or its conditions are varied in cancellation or variation. such manner as to reduce the tax, the purchaser shall reduce the input tax in his next periodic return by the amount of the difference or pay the difference, as the Minister of Finance may prescribe. i) Sefer Ha-Chukkim of 5717, p. 141; LSI vol. XI, p. 149. 56 44. The Minister of Finance may, generally or in respect of a particular Regulations as to deduction class of dealers or transactions, enact provisions as to — of input tax. (1) property and services in respect of which the input tax paid on transactions or import shall not be deductible or the right to deduct it shall be restricted as he may prescribe; (2) rules for the deduction of input tax where the property or services on the import of or transactions in which the tax has been paid are used both in transactions in respect of which the tax is deductible and in transactions in respect of which it is not deductible; (3) the manner in which a balance of input tax in excess of value added tax shall be refunded, including crediting it to the dealer's account; (4) the deduction of a tax paid in a region, within the meaning of the Emergency Regulations (Areas Held by the Defence Army of Israel — Criminal Jurisdiction and Legal Assistance), 5727—19671). in respect of which the Minister of Finance has prescribed that it shall be deductible as if it were input tax. CHAPTER NINE: INVOICES 45. A dealer shall issue to a purchaser a transaction invoice for each Duty to issue transaction or part thereof even if the transaction or part is exempt from transaction invoice. tax. 46. (a) An invoice shall be issued within fourteen days from the time Time for issue at which liability to the tax accrues: Provided that in the cases to which of invoice. section 29 applies the invoice for the amount paid as specified in that section shall be issued not later than seven days from the time that amount is received. (b) If the transaction is exempt from tax, the invoice shall be issued at the time it would have to be issued under subregulation (a) if the transaction were chargeable with tax. 47. (a) For any transaction chargeable with tax, an authorised Right to issue dealer may issue a tax invoice instead of a transaction invoice, and he shall tax invoice. do so at the purchaser's request. (b) A tax invoice shall include particulars prescribed by the Minister of Finance, provided that the tax shall be indicated separately therein ; but the Director may, generally or in respect of particular classes of dealers or transactions, permit the use of the words "excluding tax" instead of the separate indication of the tax. 1) Sefer Ha-Chukkim of 5728, p. 20; LSI vol. XXII, p. 20. 57 (c) Where a tax invoice relates both to transactions chargeable with tax and to transactions exempt from tax, or relates to transactions chargeable with tax and transactions chargeable at the nil rate, the invoice shall indicate the particulars of the account in respect of each class separately. Overstatement 48. Where an invoice is issued overstating or understating the value understatement °^tne transacti°n or tne Part °f such va'ue payable at the time, or the amount of the value added tax, the following provisions shall apply: (1) in the case of an overstatement, the tax shall be paid in accordance with the stated value or the stated amount of the tax, whichever is higher, so long as the invoice has not been corrected as prescribed by the Minister of Finance; (2) in the case of an understatement, the dealer shall issue a supplementary invoice. Transaction 49. Where an invoice is issued in respect of a transaction chargeable not effected with tax and the transaction or part thereof is not effected or is cancelled or the invoice contains an error, the tax shall be paid in accordance with the invoice so long as the same has not been cancelled or corrected as prescribed by the Minister of Finance. Tax invoice 50. (a) Where a person not authorised under section 47 to issue a issuedPerly taX inv0'ce lssues a tax invoice or a document purporting to be a tax invoice even though particulars required in a tax invoice may be missing therein, he shall pay double the amount of tax specified or implicitly indicated in the invoice. (b) A demand for payment of double the amount of tax under subsection (a) is appealable to the District Court. The filing of appeal shall not stay payment unless the court otherwise directs. Regulations 51. The Minister of Finance may in respect of particular classes of as to invoices. dealers or transactions enact supplementary provisions for the imple• mentation of this chapter, inter alia as to — (1) the form of the invoice, the particulars to be entered therein and the making of copies thereof ; (2) the safekeeping of the invoice and the copies thereof; (3) exempting dealers or a particular class of dealers or transactions from the duty of issuing an invoice, and making the exemption conditional upon the keeping of records or the issue of documents instead of an invoice. 58 CHAPTER TEN: REGISTRATION 52. (a) A dealer, a non-profit organisation and a financial institution Date of shall register at the time and in the manner prescribed. registration. (b) A person who proves to the satisfaction of the Director that he is establishing a business may register as a dealer and when he has done so shall be treated as a dealer for all intents and purposes. 53. (a) A dealer, other than a petty dealer, shall upon registration Authorised dealer's under section 52 receive an authorised dealer's certificate. certificate; (b) A person other than an authorised dealer shall upon registra• confirmation of tion receive confirmation of his registration and classification. registration. 54. When a person liable to registration does not register, the Director Registration may register him provisionally. Such registration shall not release from by Director. the duty of registration under section 52. 55. A person who has several businesses or whose business consists Registration of several of several business units shall register as one dealer in respect of all of businesses them; but he may register separately in respect of each business or unit, of the same and the Minister of Finance may prescribe conditions for such registra• dealer. tion. 56. Where dealers apply for joint registration, the Director shall so Joint registration register them, and when so registered, they shall for the purposes of this ofseveral Law be regarded as partners. The Minister of Finance may prescribe dealers. conditions for the joint registration of dealers. 57. Where a petty dealer applies for registration as an authorised Registration of dealer, the Director shall so register him, and upon being so registered, petty dealer as authorised he shall not again be registered as a petty dealer until the expiration of dealer. two years. The Minister of Finance shall prescribe conditions for registra• tion under this section. 58. The Director may, on the application of a person belonging to a Reclassification. particular class of persons liable to tax or on his own motion, register him as belonging to another class, in respect of all or part of his business dealings or activities, if he considers that by the nature thereof he is closer to the other class. 59. Where the turnover of an authorised dealer has decreased and has Registration of for two consecutive years been below the amount requiring registration authorised dealer as as an authorised dealer, the Director shall on his application register petty dealer. him as a petty dealer. This provision shall not apply to a person in respect of whom it has been prescribed that he shall be an authorised dealer even if his turnover is below the said amount. 59 Person whose 60. (a) Where a person liable to tax whose main business or activity business is is abroad carries on any business or activity in Israel, he shall within mainly abroad. thirty days after beginning to do so appoint a representative whose per• manent place of residence is in Israel and shall notify the Director of the appointment, attaching the written consent of the representative. (b) A representative appointed under this section shall for the purposes of this Law be treated as the person liable to tax. (c) Where a representative has ceased to represent the person liable to tax, such person or the representative shall give the Director notice in writing of such fact not later than fourteen days after cessation of the representation. The person liable to tax shall within that period appoint a new representative in the manner specified in subsection (a); the notification shall state the name of the new representative and be accompanied by his written consent. (d) So long as the representative has not notified the Director that he has ceased to represent the person liable to tax, the duties under subsection (b) shall continue to apply to him; and if he gives advance notice of the cessation of representation, the said duties shall apply to him until the date of cessation. Variation or 61. (a) Where it appears to the Director that a person is registered cancellation although he is not liable so to be or that a person's registration as belong• of registration. ing to a particular class of persons liable to registration is not in accord• ance with law, he may cancel or correct the registration. (b) A registration made on application under section 55 or 56 or a registration under section 58 may be cancelled or varied if it appears to the Director that the circumstances justify the same. Opportunity 62. Where the Director wishes to act under section 54, 58 or 61 other• to be heard. wise than on the application of the person concerned, he shall give him an opportunity to state his case to him. Date of coming 63. A cancellation or variation under section 61, as well as a reclas• into force. sification under section 58, shall come into force thirty days after the month in which notification under section 64 is made or at such other date as the Director may prescribe. Appeal against 64. (a) Where the Director has acted under section 52 (b), 54, 55, 56, acts of 57, 58, 59 or 61, he shall notify the person concerned accordingly, and Director. any person who considers himself aggrieved may appeal to the District Court within thirty days after the notification was served upon him. (b) Where after application is made to the Director to act under any of the sections referred to in subsection (a) he does not reply to the application within ninety days, he shall for the purposes of subsection (a) be deemed to have rejected the application. (c) The filing of appeal shall stay the implementation of the Director's decision unless the court otherwise decides. 60 65. The Minister of Finance may enact supplementary regulations for Regulations as the implementation of this chapter, including regulations as to the duties t0 registration, of a person whose registration has been cancelled or varied and the modes of deducting input tax not yet deducted. CHAPTER ELEVEN: BOOKS AND' RETURNS 66. A person liable to tax shall keep registers and records in the form Keeping of registers and and manner prescribed by the Minister of Finance generally or for par• records. ticular classes of dealers or persons liable to tax. 67. (a) A person liable to tax shall file with the Director a return for Periodic return. every period designated by the Minister of Finance as a period of return for persons liable to tax, generally or in respect of particular classes of such persons (such a return hereinafter referred to as a "periodic return") : Provided that a financial institution shall file separate returns of the wage paid and of the profit derived by it and that the period of return in respect of the profit shall be a tax year. (b) A periodic return shall be filed within fifteen days after the period of return to which it relates even if no business or activity requiring payment of tax was carried on in that period, unless the business or activity has altogether ceased and the person liable to tax has notified the Director to such effect in the manner prescribed by the Minister of Finance. (c) The Director may temporarily, for such period and on such conditions as he may prescribe, exempt a person liable to tax from filing a return. (d) The Minister of Finance may exempt classes of dealers whose business consists exclusively of tax-exempt transactions or transactions chargeable with tax at the nil rate from filing a periodic return. 68. (a) Where a person liable to tax does not know the data required Provisional to be stated in a return, he may file a provisional return stating them by return. way of estimate. (b) A provisional return shall not be filed where two or more provisional returns were filed during the year preceding the period in question, unless the Director has approved its filing for special reasons. (c) Where a provisional return is filed, the periodic return shall be filed within thirty days thereafter. 69. (a) A dealer's periodic return shall include the aggregate amount Particulars of of the transactions for which the date for the issue of invoices falls in the dealer's return. period of return, even if the dealer has been exempted from the issue of invoices, as well as the aggregate amount of the transactions for which tax invoices have been issued, even if the date for the issue thereof has 61. not yet arrived, unless the transactions were included in an earlier periodic return. (b) Where a dealer has effected transactions chargeable with tax and transactions chargeable at the nil rate or exempt from tax, he shall specify separately the aggregate amount of the transactions of each class and the tax leviable thereon. (c) A periodic return shall indicate separately the aggregate amount of the dealer's acquisitions, including imports, and the aggregate amount of the services received by him, the amount of deductible input tax included in tax invoices validly issued to him before the expiration of the period of return, and any other particular prescribed by the Min• ister of Finance. Returns by 70. A periodic return by a non-profit organisation shall include the non-profit organisations aggregate amount of the wages paid by it in the period of return, and the and financial periodic returns of a financial institution shall respectively include the institutions. aggregate amount of the wages paid by it and the aggregate amount of the profits derived by it. Supplementary 71. Where any data required to be included in a periodic return have return. been omitted from it, the person liable to tax shall file a supplementary return for the period in question and shall not include those data in another return. Request for 72. (a) The Director may, generally or specifically or in respect of additional particulars, particular classes of persons liable to tax, request the filing of returns in additional addition to the periodic returns, for such periods and at such dates as returns and he may prescribe, as well as the filing of a summary annual return and a auditor's certificate. return of stock. (b) The Director may request an authorised dealer being a body of persons, generally or specifically or in respect of particular classes of dealers, to file balance-sheets and accounts of adjustment for tax pur• poses. He may also request a body of persons as aforesaid to have any summary annual return, periodic return in which a tax refund is requested under section 39 or return of another kind designated by the Minister of Finance certified and adjusted for tax purposes by an auditor. (c) In the case of a body of persons being a cooperative society affiliated with an audit union, the auditor referred to in subsection (b) may be replaced by an official of the audit union duly registered with the Registrar of Cooperative Societies. (d) The Director may request a person who has certified a return under subsection (b) or (c) to give him information as to the extent and findings of the auditing carried out. Deferment 73. The Director may defer the dates for the filing of returns, generally of date for or specifically or in respect of particular classes of persons liable to tax: filing return. Provided that a deferment in respect of a particular person shall only be made for special reasons which shall be recorded. 62 Where the date for the filing of a periodic return is deferred, the person liable to tax may file a provisional return and section 68 shall apply mutatis mutandis. 74. (a) The Director may refuse to accept a return if the person liable Refusal to to tax does not keep accounts or keeps accounts in substantial deviation accept return. from the provisions of this Law or the regulations thereunder or if the documents on which the books are based have not been preserved in accordance with directions. Where the Director refuses to accept a return, the person liable to tax shall for the purposes of section 76 be deemed not to have filed a return. (b) The Director shall notify the person liable to tax of the refusal, specifying his reasons therefor. (c) The person liable to tax may appeal against the refusal to the District Court, or object thereto before the Books Acceptability Com• mittee established under section 127 (hereinafter referred to as "the Books Acceptability Committee"), within fifteen days from receipt of notifi• cation under subsection (b). (d) Where an appeal or objection has been filed, the Director shall treat the return as validly filed so long as the court or committee does not otherwise decide. 75. Account-books of a person liable to tax required to be kept under Preservation of books and this Law, the documents on which they are based and his purchase documents. invoices shall be preserved by him for seven years, or for such shorter period as shall be prescribed either generally or in respect of particular classes of persons, from the date of the last entry in the book or from the date on which the purchase invoice is issued, whichever is the later. CHAPTER TWELVE : DETERMINATION OF TAX, ASSESSM JNT, CONTESTATION AND APPEAL 76. (a) Where a person liable to tax has not filed a periodic return, Determination the tax payable by him shall be determined having regard to the extent of tax. of his transactions or activity or, in the absence of data, by estimate (any such determination hereinafter referred to as a "determination of tax"). (b) A determination of tax shall not be open to contestation or appeal, and it shall become void automatically if the periodic return is filed; but in the case of a person who alleges that he is not liable to tax the determination shall for the purposes of contestation and appeal be regarded as an assessment. 77. (a) Where a person liable to tax has filed a periodic return which Assessment in the opinion of the Director is not complete or not correct or which is to best of judgment. not supported by documents or account-books as prescribed, the Director 63 may to the best of his judgment assess the tax due or the input tax (any such assessment hereinafter referred to as an "assessment"). (b) The assessment shall be made within five years after the filing of the return or, where the person liable to tax has been convicted of giving false information in the return or of any other act committed with intent to evade the payment of tax due for the period of return concerned or where any such offence has been compounded, within ten years after the filing of the return. (c) The notice of assessment shall specify the reasons for the assessment. Determination 78. A determination or assessment of tax may also be made for several, and assessment even non-consecutive, periods of return. for several periods. Amendment of 79. (a) Where the Director is satisfied that a determination or as- assessment or sesment of tax is not correct, he may, on his own motion or on the ap• determination. plication of the assessee, amend it within five years from the day it was made. (b) A determination or assessment shall not be amended under subsection (a) where seven years have elapsed since the filing of the return unless the person liable to tax has been convicted of an act committed with intent to evade the payment of tax due for the said period or such an offence has been compounded. (c) An amended determination shall be treated as a determination of tax, and an amended assessment shall, for the purposes of contestation and appeal, be treated as an assessment. Service of 80. Notice of a determination or assessment of tax or any amendment notice. thereof shall be served upon the person liable to tax personally or by registered post. Saving of 81. A determination or assessment of tax shall not derogate from the responsibility. duties or criminal responsibility of the person liable to tax. Contestation. 82. (a) A person who disputes an assessment may contest it in writing before the Director within thirty days after the notice of assessment was served upon him or within such later period as the Director may permit for special reasons. (b) If the person liable to tax and the Director reach agreement as to the tax due, the assessment shall be amended accordingly. If no agreement is reached, the Director shall decide upon the contestation; he may confirm, increase or reduce the assessment. (c) Notice of the Director's consent or of his decision on the contestation and of the reasons for such decision shall be served upon the person liable to tax. 64 (d) Where the Director does not decide as provided in subsection (b) within one year from the date when the contestation is filed, the contestation shall be deemed to have been allowed. 83. (a) A person who considers himself aggrieved by the Director's Appeal. decision upon a contestation may appeal to the District Court. (b) The appeal shall be heard by a single Judge, who may ap• point advisers for himself from a list of advisers designated by the Minister of Justice in consultation with the Minister of Finance. An adviser shall assist the Judge in clarifying the appeal at the hearing thereof but shall not take part in the judgement. (c) An appeal shall be heard in camera unless the court otherwise decides on the application of the appellant. (d) The onus of proof shall be on the appellant where the return is not supported by properly kept account-books. (e) The court shall confirm, reduce, increase or set asside the assessment or give such other decision as it sees fit. 1 84. The Minister of Justice may make regulations as to the manner Procedural of filing appeal and the procedure therein and as to fees, costs, loss- regulations. of-working-time allowance for witnesses and the remuneration of ad• visers. 85. There shall be no contestation or appeal under this chapter unless Payment of tax any tax not in dispute has been paid. not in dispute. 86. Where a person disputes liability to tax on the import of goods, Dispute as to the provisions of section 154 (a) and (b) of the Customs Ordinance shall tax on import. apply mutatis mutandis. 87. Where it appears in proceedings under this chapter that excess tax Refund of has been paid, the excess shall be refunded within one month after excess amount. completion of the proceedings in so far as it has not been deducted as input tax. CHAPTER THIRTEEN: DATE FOR PAYMENT 88. (a) A person liable to tax shall, upon filing a periodic or pro• Payment according visional return, pay the tax due thereunder in respect of the period to return. of return. (b) Where the amount of tax paid under a provisional return exceeds the amount resulting from a periodic return filed subsequently, the excess shall be refunded within one month from the date on which the periodic return is filed. 89. The tax on the import of goods shall be paid at the time when Payment in case of the entry of the goods for home consumption is passed. imports. 90. The tax due under a determination or assessment of tax or an Payment in case amendment thereof shall be paid • within one month from the date on of determination or assessment. which notice of the determination, assessment or amendment is served 65 upon the person liable to ,tax; the same shall apply mutatis mutandis to a balance of tax resulting from a decison on a contestation or from a judgment. Payment in case 91. Where a contestation or appeal has been filed, the contestor or of contestation appellant may refrain from paying the amount in dispute. or appeal. Advance 92. The Minister of Finance may prescribe advance payments on ac• payments. count of the tax to which a financial institution is liable on its profits. CHAPTER FOURTEEN: COLLECTION, FINES AND INTEREST Definitions. 93. In this chapter — "index" means the consumer price index published from time to time on behalf of the Central Bureau of Statistics; "linkage differentials" means an addition to the amount of a debt in accordance with the rise in the index; "linkage-differentials-and-interest" means linkage differentials with an addition of four per cent per annum on the linked amount, or in• terest at the rate of 15 per cent per annum or such higher rate as the Minister of Finance may prescribe for the period in question on the amount concerned, whichever is more. 94. A person liable to tax who does not file a periodic return at the Fine for delay in filing return. prescribed time or a provisional return where he is permitted to do so shall be liable to an arrear fine of 100 pounds in respect of every two weeks or fraction thereof. 95. (a) Where a person liable to tax does not keep account-books Fine for not or records as prescribed, or keeps account-books or records in sub• keeping books. stantial deviation from the provisions of this Law or the regulations thereunder, the Director may impose a fine equal to one per cent of the aggregate value of the transactions or the aggregate amount of the wages and the profit, as the case may be, for the whole of the period in which books or records were not kept as prescribed: Provided that the fine shall not be less than 150 pounds in respect of one month. (b) The person liable to tax may within thirty days from the day on which notice of a decision of the Director under subsection (a) is given to him, appeal against it to the District Court or object to it before the Books Acceptability Committee established under section 127.•, (c) The filing of appeal or objection shall not delay the payment of the tax unless the Committee otherwise decides. Fine for failure 96. Where any tax is not paid at the prescribed time, there shall, besides to pay in time. interest and linkage-differentials-and-interest under section 97, be added to it an arrear fine equal to 0.25 per cent of the overdue amount in respect 66 of every week or fraction thereof of a period of delay up to six months and equal to 0.50 per cent in respect of every week or fraction thereof of a period of delay in excess of six months. Interest and -Where any tax is not paid at the prescribed time or the Director linkage .97׳ has deferred payment thereof, there shall, in respect of the period of delay differentials- or deferment, be added to it interest at the rate of 15 per cent or such and-interest. higher rate as the Minister of Finance may prescribe from the expiration of the time for payment until six months thereafter and linkage-differen- tials-and-interest from then onwards. '98. (a) Where tax is due under a periodic return filed as provided in Interest and linkage- section 68 (c), interest and linkage-differentials-and-interest as provided differentials- in section 97 shall be added to it from the expiration of fifteen days after and-interest the end of the period of return. in special cases. (b) Where tax is due under circumstances referred to in section 90, a fine, interest and linkage-differentials-and-interest as provided in sec tions 96 and 97 shall be added to it from the expiration of the time for . filing the periodic return to which the tax relates. Liability for 99. Where collection proceedings are taken, the costs incidental to the costs of demand for payment, collection, the attachment and safekeeping of goods collection. and the like, in the amount determined by the Minister of Finance, shall be added to the debt. 100. The Director may, for reasons which shall be recorded, waive or Waiver of fine, interest or reduce any fine, interest, linkage-differentials-and-interest or costs, and costs. he may commute a fine under section 96 or 98 (b) for interest and linkage-differentials-and-interest as provided in section 97. 101. Any fine, interest, linkage-differentials-and-interest, double tax or Time for payment. costs under this chapter shall be paid within one month after service of notice of liability thereto. 102. The Taxes (Collection) Ordinancel) shall apply to the collection of Modes of collection. •debts to the Treasury under this Law, but they may also be collected by way of civil action. Crediting 103. Payments by a person liable to tax shall be credited against his payment against •debts under this Law in the order of their creation. prior debt. 104. The provisions of this chapter shall not derogate from the criminal Saving of criminal liability of a person liable to tax. responsibility. 105. A person entitled to the refund of an excess payment under section Interest on delayed 39, 87 or 88 (b) to whom the same is not refunded within the time pres refund. cribed therein shall be paid interest and linkage-differentials-and-interest !) Law of Palestine vol. II, p. 1399 (English Edition). 67 as provided in section 97 from the date of filing the return if he is entitled to a refund under section 39 and from the date of payment if he is entitled to a refund under section 87 or 88 (b). Interest-and- 106. Interest and linkage-differentials-and-interest paid in respect of linkage- tax due from a person liable to tax, other than a person liable to tax differentials to be who was required to keep account-books but did not keep them or kept expenses for them in substantial deviation from the provisions of this Law or the purposes of regulations thereunder, shall be recognised as expenses for the purposes income tax. of the Income Tax Ordinance. CHAPTER FIFTEEN: POWERS OF IMPLEMENTATION Administration 107. (a) The tax shall be administered by the Director, who may of tax and delegate any of his powers, other than the powers under sections 30, 61, delegation of powers. 109, 112(a)(1) and 140. (b) The Minister of Finance may commit to the Comissioner of Income Tax the administration of the tax in regard to financial institu• tions and non-profit organisations, and upon his doing so the Commis• sioner shall have the powers of the Director in this regard, other than the powers under sections 58 and 61. (c) A delegation of powers under sections 77, 79, 82, 95, 108 (b), 112 (a) (2), 113, 114 or 115 shall require publication in Reshumot. Request for 108. (a) To ensure the implementation of the Law or the regulations documents, thereunder, the Director may samples and information. (1) request any person to furnish him with relevant in• formation and to enable him to inspect and photograph rele• vant documents and samples; (2) request a person liable to tax to deliver to him relevant documents, samples and information, including identification marks given to him by the Director. (b) The photograph of a document or sample as aforesaid bearing the certification of the Director and the person liable to tax or his autho• rised agent that it conforms with the original shall for all intents and purposes be deemed to be the original. Powers of 109. (a) To ensure the implementation of this Law or the regulations search and thereunder, a person empowered in that behalf by the Director may — seizure. (1) enter any place which is not only a dwelling-house and, in the case of an immovable property transaction, also a dwelling-house which is the subject thereof, provided that if the house is inhabited he may only enter it with the written approval of the Director and after twenty-four hours' ad• vance notice has been given; but entry to an installation 68 which the Minister of Defence has designated as a defence installation shall require the approval of the Minister of Defence or a person empowered by him; (2) seize from a dealer any goods (hereafter in this chapter including means of transportation thereof, books and other documents) if there is suspicion that an offence has been com• mitted therewith or in respect thereof or they are likely to serve as evidence of the commission of an offence; but a means of transportation which has served for the transporta• tion of goods as aforesaid may only be seized if the owner of the means of transportation or a person by whom it is regu• larly used is suspected of having committed the offence or of having had advance knowledge of its commission; (3) examine any person. (b) A person empowered under subsection (a) shall have the powers of a police officer for the prevention or detection of offences and the power of a commissioned officer of police of the rank of inspector under section 2 of the Criminal Procedure (Evidence) Ordinancel); and section 3 of that Ordinance shall apply to a statement taken down by him. 110. Notwithstanding the provision of section 109(a) (3) and without Restriction as prejudice to the provisions of any law relating to privileged evidence, the to examination of family Director or a person empowered by him shall not on his own initiative members. examine the spouse, child or parent of the person liable to tax. 111. (a) Where goods have been seized under section 109, the Director How to deal may transfer them to such place as he may direct or, with the consent with goods seized. of the person having possession thereof, immobilise them in that person's hands either on security to the Director's satisfaction or without security. (b) Where goods have been immobilised in the hands of the per• son having possession thereof, as provided in subsection (a), that person shall produce them at the request of the Director. If he does not do so or produces them in damaged condition, he shall be guilty of an offence under this Law unless he proves that they have disappeared or been damaged from causes over which he had no control. (c) Where goods being animals or a perishable commodity have been seized, the Magistrates' Court may on the application of the Director order that they be sold by public auction or at the current market price, and the proceeds of the sale shall for the purposes of the other provisions of this section be deemed to be the goods seized. 1) Laws of Palestine vol. I, p. 467 (English Edition). 69 (d) Where goods have been seized without the Director knowing the identity of the owner thereof or the address of the person from whom they were seized, the Director shall publish a notice to this effect in Reslmmot, and if no person claims them within three months from pub• lication of the notice they shall be forfeited. (e) Where goods have been seized under section 109 and no complaint of an offence under this Law for which they have been seized is filed or compounded within six months from the date of seizure, they shall be returned to the person from whom they were seized. The Magistrates' Court may on the application of the Director extend the period by another six months. (f) Where an offence in respect of goods seized under section 109 has been compounded, the Director may declare them forfeited. (g) If a person is convicted of the offence for which the goods were seized, they shall be forfeited unless the court otherwise directs. If the accused is acquitted, they shall be returned to the person from whom they were seized or to such other person as the court may direct; but the court may direct that they shall be forfeited notwithstanding the acquittal. (h) Where goods have been forfeited, the Director may return them to the person from whom they were forfeited or to the owner against payment of the value thereof. (i) Where a document or book which has been seized is required by the person from whom it was seized or by some other person for the fulfilment of a duty under law, that person.may inspect or photograph it, and the Director may on his application return it to him and may make the return conditional upon delivery of the photograph to the Director; the provisions of section 108 (b) shall apply to the photograph. Administrative 112. (a) Where the Director is satisfied that a dealer has not made a means of proper return of all his transactions or has not paid the tax due under a compulsion. return filed by him or did not during the past year file more than two returns under section 67 or has committed an offence with intent to evade the payment of tax, he may — (1) require him to give security to the Director's satisfaction for the payment of any debt and for compliance with the provisions of this Law and, if he does not give security at the time prescribed by the Director, prohibit him from con• tinuing in business until security is provided; (2) prohibit him from transferring goods or rendering ser• vices in the course of his business before the Director has endorsed the invoice, the delivery note or any other docu• ment, as the Director may prescribe. 70 (b) A decision of the Director to prohibit the continuation of business, the transfer of goods or the rendering of services shall come into force at the expiration of fifteen days from the day when it is served upon the dealer. (c) A decision of the Director as aforesaid is appealable to the District Court.' The filing of appeal shall stay the implementation of the decision so long as the Court does not otherwise decide. 113. (a) Where a person does not keep books or keeps books in Prohibition of issue of substantial deviation from the provisions of this Law and the regulations tax invoice. thereunder, the Director shall warn him, specifying the defect in the warning. If the defect is not remedied within one month from the day on which the warning is served, the Director may prohibit him from issuing tax invoices. (b) The person liable to tax may appeal to the District Court or object before the Books Acceptability Committee against the Director's warning or, at his option, the decision to prohibit the issue of tax in• voices. (c) The appeal or objection shall be filed within fifteen days from the day on which the warning or notice of prohibition is served, and the filing thereof shall not stay the implementation of the Director's decision unless the court or committee otherwise decides. 114. The Director may prevent the removal of any goods of a person Detention of liable to tax from the control of the Customs until the whole of the debt goods under control of due from him under this Law has been paid or until the returns he is Customs. required to make have been filed. 115. (a) Where a person liable to tax about to leave Israel is requested Prevention to pay the tax due from him or to give security for its payment or to file from leaving a special periodic return and he does not do so, the Magistrates' Court Israel. at his place of residence or place of business may, on the application of the Director, direct that he shall be prevented from leaving Israel until he has fulfilled conditions prescribed by it. (b) Where the person liable to tax is a small company, within the meaning of section 76 of the Income Tax Ordinance, a direction under subsection (a) to prevent departure from Israel may be issued against every active director or manager thereof and against every member thereof holding shares conferring on him at least 26 per cent of the voting power therein or at least 26 per cent of the capital thereof in the event of winding-up. 116. (a) The Director may extend every time prescribed by this Law Deferment or by regulations thereunder for the doing of anything, other than time of dates. for filing appeal or objection. He may also permit a debt to be paid by 71 instalments; where he has done so and the person liable to tax does not pay an instalment at the prescribed date, he may require the balance of the debt to be paid forthwith. (b) The Director may" make the extension of times under sub section (a) conditional upon the giving of security for the payment of any debt and the doing of any act the date for which has been deferred. CHAPTER SIXTEEN: PENALTIES Offences. 117. (a) A person who contravenes any of the provisions of this Law or the regulations thereunder as follows shall be liable to imprisonment for a term of one year or a fine of 20,000 pounds or an amount equivalent to treble the benefit he has derived or intended to derive, whichever is the greater amount: ., (1) being bound to deliver any information, document, book or sample, refuses or fails to deliver it after being requested to do so; (2) , refuses or fails to appear for examination after being requested to do so; (3) without reasonable explanation delivers any incorrect or inexact information, or delivers any return or other docu . . ־ ;ment containing such information (4) fails to do anything he is required to do for the purpose of his registration; (5) issues a tax invoice without being entitled or after being forbidden to do so; (6) does not file in due time a return he has been requested to file; (7) does not keep account-books or other records he is required to keep, or is found by final determination under section 95 or 113 to have kept them in substantial deviation from the relevant provisions; (8) has in his possession identification marks received other wise than from the Director or uses identification marks after being prohibited from using them; (9) being a dealer, unlawfully delivers to another person goods the import or sale of which is exempt on condition that they are used by himself alone; (10) knowingly transports goods unaccompanied by a deli very note or invoice; (11) obstructs or prevents a person from carrying out his duty under this Law. 72 (b) A person who commits any of the offences specified in sub section (a) with intent to evade the payment of tax or does any other act with such intent shall be liable to imprisonment for a term of three years or a fine of 100,000 pounds or an amount equal to treble the tax the payment of which he has evaded or intended to evade or equivalent to treble the benefit he has derived or intended to derive, whichever is the ־ — greatest amount, and so shall a person who (1) conceals, destroys or alters any book or other document . he has been requested to keep or deliver; or (2) continues to conduct transactions after being prohibit ed from doing so or before fulfilling the conditions for con tinuing in business; or (3) issues a tax invoice without having effected or under taken to effect the transaction in respect of which he issues the invoice; or (4) knowingly deducts input tax without having a tax in voice in respect thereof. (c) Where a person is convicted of an offence under subsection (b) within three years of being sentenced for a like offence, the court may, in addition to any other penalty, prohibit him from continuing in bus iness for such period as it may prescribe. 118. A person who contravenes any of the provisions of this Law for Offence for the contravention of which no penalty is prescribed, or who contravenes which no penalty is a provision of regulations thereunder the contravention of which is prescribed. stated by the regulations to be an offence shall be liable to imprisonment for a term of three months or a fine of 5,000 pounds. 119. Where an offence under this Law or any regulations thereunder is Offence by committed by an incorporated or unincorporated body of persons, every body of persons. person who at the time of its commission was an active director, sec retary, trustee, authorised representative, active partner, accountant or bookkeeper or otherwise a responsible official of such body shall also be guilty of the offence unless he proves that it was committed without his knowledge or that he took all appropriate measures to ensure com pliance with the provisions of this Law. 120. Where an offence under this Law or any regulations thereunder is Responsibility for acts of committed by any clerk, worker or agent in the course of the business or employee. activity of a person liable to tax, the person liable to tax shall also be guilty of the offence unless he proves that it was committed without his knowledge or that he took all appropriate measures to ensure compliance with the provisions of this Law. 73. Monetary 121. (a) ( Where a person has committed or is suspected of an offence composition. under this Law or any regulations thereunder, the Director may, with the consent of such person, accept from him a monetary composition in an amount not exceeding the highest fine which can be imposed for that offence, and upon his doing so every legal proceeding in respect of the offence shall be discontinued; but where an information has been filed,, a monetary composition shall not be accepted unless the Attorney- General has ordered a stay of proceedings. (b) The Director may make a monetary composition conditional upon an undertaking to refrain from an offence for a period prescribed by him not exceeding three years. The undertaking shall be a recognizance in an amount not exceeding the highest fine which could have been im• posed for the offence, with or without third-party guarantee, as the Director may prescribe. (c) Where a person is convicted of an offence from which he has undertaken to refrain under subsection (b), the recognizance shall be collected as a debt under this Law. Administrative 122. (a) Where the Director is satisfied that a person has committed fine. an offence under this Law or any regulations thereunder — other than an offence to which section 94, 95 or 96 applies — without intent to- evade the payment of tax or with intent to envade the payment of tax. of an amount not exceeding 5,000 pounds, he may impose an administra• tive fine of 250 pounds or equal to the amount the payment of which the person intended to evade, provided that the fine shall not exceed 1,500 pounds. (b) Notice shall be served of the imposition of any fine under this section and the fine shall be paid within fourteen days after service. (c) The imposition of a fine shall be appealable within thirty days, after service of notice thereof to the Magistrates' Court in whose area the offence was committed. (d) Where the fine has been paid and not appealed against or the appeal has been dismissed, the offence shall be deemed to have been compounded except for the purposes of section 111 (f). .(e) The decision of the court in an appeal shall for the purposes, of an appeal against it be treated as a judgment in a criminal case. Conviction not 123. A conviction or the payment of a composition or an administrative to release from fine shall not release a person from any duty under this Law or the duties. regulations thereunder. Forfeiture in 124. Forfeiture under this Law shall be in addition to and not in lieu of addition to any penalty, fine or composition. • other penalties. 74 CHAPTER SEVENTEEN: MISCELLANEOUS PROVISIONS 125. The Minister of Finance may vary the amounts prescribed in sec Power to tions 94, 95 and 122. vary amounts. 126. (a) The amounts prescribed by or under sections 31 (3) and 35 Linkage. shall on the 1st of April of every year be adjusted to the rise of the con sumer price index published on behalf of the Central Bureau of Statistics for the 15th of March preceding; the amounts so adjusted shall be rounded off to the nearest thousand pounds. (b) If the Minister of Finance exercises his power under section 31 (3) or 35 within six months preceding the 1st of April of a particular year, an adjustment under subsection (a) shall not be made for that year. 127. (a) The Minister of Finance shall in consultation with the Min Books ister of Justice appoint persons from whom the Director shall form a acceptability committee. committee on the acceptability of account-books. (b) Every committee as aforesaid shall consist of three members. The chairman shall be a member of the public expert in accountancy, and the two others shall be auditors of whom only one may be a State em ployee or employee of a state institution. (c) Notice of appointments as aforesaid shall be published in Reshumot. (d) Upon hearing an objection, a committee may find — (1) that the person liable to tax does not keep books or that he keeps books in substantial deviation from the pro visions of this Law and the regulations thereunder; or (2) that the person liable to tax keeps books in accordance with the said provisions or that the deviation therefrom is not substantial. (e) A committee's decision on an objection shall be final, but it may refer a legal question to the District Court for an opinion. (f) A committee is competent to collect evidence for the purpose of exercising its powers under this Law. (g) A committee may award the costs of objection proceedings, including remuneration of the representative of the person liable to tax .time allowance for witnesses־and travelling expenses and loss-of-working (h) The Minister of Justice may make regulations as to — (1) the convening of committees; (2) procedure before committees; (3) fees payable in respect of proceedings before commit tees; (4) remuneration of members of committees. 75 ; Partnership 128. (a) A transaction effected by a partner in the course of the busi ׳ and joint transaction. ness of the partnership shall be deemed to have been effected by the partnership unless the contrary is proved to the satisfaction of the Director. (b) Where a partnership is formed for carrying out a particular transaction or where a transaction is jointly effected by several dealers, the transaction shall not be regarded as a partnership transaction but as a transaction by each separate partner or dealer in accordance with his share unless the partners have asked to be registered as one dealer. (c) The Minister may enact provisions as to registration, the making of returns, deductions and the issue of invoices in transactions referred to in subsection (b) even in deviation from the provisions of this Law. (d) Where the Director does not accept any evidence submitted to him for the purposes of subsection (a), the partner or partnership may appeal to the District Court. Delivery 129. Goods unaccompanied by an invoice or a delivery note shall not note. be carried by a means of transport of the dealer who has effected a transaction therein or by a means of transport of a dealer whose business is the carriage of goods unless the dealer has been exempted from com pliance with this provision by regulations or by direction of the Director and subject to conditions prescribed by him. Identification 130. The Minister of Finance may. prescribe the duty of marking goods marks. of a particular class with identification marks prescribed by him and the manner of using such marks, and he may exempt a dealer from the duty of marking goods in the course of his business. Display of price to include 131. A dealer who publicly displays or in any manner publishes the information price of any property or service shall indicate whether or not the price as to tax. includes tax. 132. A person who alleges that he has paid tax or filed a return or that Evidence. tax was deducted on the basis of a tax invoice shall bear the burden of proof. 133. A dealer who in the course of his business has delivered any prop Presumption of sale. erty of his business to another, except on consignment, shall be deemed to have sold it unless the contrary is proved. Exemption from 134. Any notice, demand, determination of tax, assessment or other requirement of document issued under this Law which indicates the name or title of the signature. person issuing it shall not require his signature. 76 135. The validity of an act done under this Law shall not be impaired Defect not to by any want of form, error or omission therein unless the same affects invalidate act. the substance of the act or is likely to mislead. 136. The Director may request that no such sale or. class of sales of Registration immovable property as requires registration in the Land Register shall in Land Register. be registered unless the purchaser is in possession of a tax invoice in respect of the sale or unless a certificate from the Director is produced that the tax due on the sale has been paid or that he has been given security for its payment in'due time. 137. A person liable to tax shall notify the Director, in such manner Notification and at such time as shall be prescribed, of any change which has oc• of changes. curred in the ownership of the business or organisation or in his dealings or activity or in any other particular the Director may prescribe. 138. (a) The Director may disregard a transaction if he is of the Artificial or fictitious opinion that it is artificial or fictitious or that one of its principal objects transaction. is improper avoidance or reduction of tax. (b) A decision of the Director under subsection (a) shall be ap• pealable to the District Court. 139. Any amount specified in a return under this Law shall be rounded Rounding off off to the nearest whole pound; half a pound shall be rounded off up• of amounts. wards. 140. The Director may determine forms necessary for the implementa• Forms. tion of this Law and the form of account-books and other records required to be kept by a person liable to tax, and he may direct that such forms, books or records shall be used. 141. (a) A document required to be served for the purposes of this Service of Law for which a mode of service has not been prescribed may be served documents. by hand or sent by post. (b) Where a document is sent by post, it shall be deemed to have been served upon the addressee on the fifth day after dispatch even if the addressee has refused to accept it. (c) Where a document intended for a partnership, other than a partnership referred to in section 128 (b), has been served upon one of the partners, it shall be deemed to have been served upon all the partners. 142. (a) A person shall not disclose any information reaching him in Secrecy. the course of the implementation of this Law unless — (1) the Minister of Finance has permitted him to disclose it; 77 (2) he is requested to disclose it in legal proceedings under this Law or a tax law within the meaning of the Tax Law Amendment (Exchange of Information between Tax Autho- . rities) Law, 5727—19671). (b) A person whom any information reaches in pursuance of sub• section (a) shall be deemed to have received it in the course of the im• plementation of this Law. (c) A person who unlawfully discloses any information reaching him in the course of the implementation of this Law shall be liable to imprisonment for a term of one year or a fine of 20,000 pounds. Request for 143. The provisions of sections 235A to 235D of the Income Tax Ordi• documents and nance shall apply to a request for information or documents under this plea of privilege. Law. Application of 144. The provisions of sections 63, 64, 80, 82 to 88, 92, 93, 104, 128, provisions of 141, 150, 170 and 171 of the Customs Ordinance shall apply for the Customs Ordinance. purposes of the tax on the import of goods. Implementation 145. (a) The Minister of Finance is charged with the implemen- and regulations. tation of this Law and may make regulations as to any matter relating to its implementation. (b) The Minister of Finance may prescribe that the provisions of the Income Tax Ordinance relating to assessments, contestations, objections, collection, interest and fines or to some of these matters shall apply to the collection of a tax the administration of which has been committed to the Commissioner of Income Tax under section 107. (c) Regulations by the Minister of Finance, other than regula• tions under section 2, 4, 48, 49, 127 or 142, as well as regulations by the Director under section 47 (b), 72 (a), 72 (b), opening passage, or 73, ap• plying generally or in respect of particular classes of cases, shall require the approval of the Finance Committee of the Knesset, and regulations under section 140 shall be brought to its knowledge. Procedural 146. The Minister of Justice may make procedural regulations for pro• regulations. ceedings under this Law, as well as regulations as to fees, costs and loss- of-working-time allowances for witnesses incidental to such proceedings. 1) Sefer Ha-Chukkim of 5727,p. 136; LSI vol. XXI, p. 135. 78 CHAPTER EIGHTEEN: COMMENCEMENT AND TRANSITIONAL PROVISIONS 147. (a) This Law shall come into force on the date prescribed by the Commencement. Minister of Finance, and he may prescribe different dates, not later than the expiration of one year from the publication of this Law in Reshumot, for different classes of persons liable to tax. In the case of persons liable to tax for whom the Minister of Finance has not prescribed a com mencement date, the tax shall become operative on the expiration of one year from the publication of this Law in Reshumot. (b) Notwithstanding the provisions of subsection (a), the pro visions as to the registration of persons liable to tax and their representa tives shall come into force on the date of publication of this Law. 148. The following provisions shall apply to a sale of goods agreed upon Transitional before the coming into force of this Law: provisions as to the (1) where the goods were delivered to the purchaser before saleofg°°ds• the coming into force of this Law, they shall be exempt from tax; (2) where the goods were not delivered to the purchaser before the coming into force of this Law, the duty of paying tax, the duty of issuing an invoice and all the other duties shall apply. 149. Where a transaction in immovable property or the rendering of Transitional provisions as any services was begun but not completed before the coming into force to the sale of this Law, such part of the consideration as was paid after the coming of immovable into force of this Law shall be chargeable with tax: property and the rendering Provided that residential premises shall be charged at the nil rate of services. if— (1) the sale agreement was signed before the 22nd Sivan, 5735 (1st June, 1975) and duly stamped within thirty days after its signing; and (2) not less than 15 per cent of the price indicated in the agreement at the time of signing was paid before the 22nd Sivan, 5735 (1st June, 1975). Goods imported before the coming into force of this Law but the Transitional ׳.150 entry of which for home consumption has not yet been passed shall be Provisions , ... •r• , , , , • , /• I as to imports charged with tax as if they had been imported after the coming into force of this Law. 79 Regulations 151. Where purchase tax is abolished or reduced in consequence of the as to refund of purchase tax. introduction of the whole or part of the value added tax, the Minister of Finance may by regulations enact provisions as to the refund of the whole or part of the purchase tax paid before the coming into force of this Law. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 23) ENCOURAGEMENT OF INDUSTRY (TAXES) (AMENDMENT No. 5) LAW 5736—1975* Replacement 1. In the Encouragement of Industry (Taxes) Law, 5729—1969l) of sections (hereinafter referred to as "the principal Law"), sections 6 and 7 shall be 6 and 7. replaced by the following sections: "Right to 6. Subject to the provisions of section 15(a), an additional industrial company which acquired a business asset on allowance. or before the 22nd Cheshvan, 5735 (10th November, 1974) (hereinafter referred to as "the third devaluation date") shall in respect of that asset be entitled from the tax year 1968 onwards to an allowance as specified in section 7, 8 or 10 of this Law in addition to the deprecia• tion allowance due to it under section 21 of the Ordi• nance or section 2 of this Law or section 7 (a) of the Encouragement of Industry (Taxes) (Amendment No. 4) Law, 5735-1975 2), as the case may be (herein• after referred to as "the ordinary depreciation"). Additional 7. Where a business asset was acquired by or on allowance if behalf of the company with dollars of the United States asset acquired with dollars. of America (hereinafter referred to as "dollars"), the additional allowance shall be determined as follows: * Passed by the Knesset on the 26th Tevet, 5736 (30th December, 1975) and pub• lished in Sefer Ha-Chukkim No. 791 of the 4th Shevat, 5736 (6th January, 1976), p. 76; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1206 of 5735, p. 459. 1) Sefer Ha-Chukkim of 5729, p. 232 — LSI vol. XXIII, p. 253; Sefer Ha-Chukkim of 5730, p. 152 — LSI vol. XXIV, p. 160; Sefer Ha-Chukkim of 5734, pp. 68 and 76 — LSI vol. XXVIII, pp. 67 and 80; Sefer Ha-Chukkim of 5735, p. 164 — LSI vol. XXIX, p. 209. 2) Sefer Ha-Chukkim of 5735, p. 164 —LSI vol. XXIX, p. 209. 80 (1) for any of the tax years 1968 to 1971, in respect of property acquired before the 16th Cheshvan, 5728 (19th November, 1967) (herein• after referred to as "the first devaluation date"), the additional allowance shall be the amount by which the depreciation which the company would have been entitled to deduct in respect of that asset in that year had the original price of the asset been fixed in pounds at the exchange rate of 3.50 pounds per dollar of the acquisition price exceeds the ordinary depreciation which it would have been entitled to deduct according to an ex• change rate of 3 pounds per dollar of the ac• quisition price; (2) for any of the tax years 1972 to 1974, in respect of property acquired before the 30th Av, 5731 (21st August, 1971), the additional allowance shall be the amount by which the depreciation which the company would have been entitled to deduct in respect of that asset in that year had the original price of the asset been fixed in pounds at the exchange rate of 4.20 pounds per dollar of the acquisition price exceeds the ordinary de• preciation; (3) for the tax year 1975 or any subsequent year, in respect of property acquired before the third devaluation date, the additional allowance shall be the amount by which the depreciation which the company would have been entitled to deduct in respect of that asset in that year had the original price of the asset been fixed in pounds at the ex• change rate of 6.00 pounds per dollar of the acquisition price exceeds the ordinary deprecia• tion.". 2. The following paragraph shall be added at the end of section 8 of Amendment of the principal Law: sections. "(3) on the 25th Cheshvan 5735 (10th November, 1974) in the case of an allowance under section 3 (7)". 3. Section 8A of the principal Law shall be replaced by the following Replacement of section: section 8A. "Prevention 8A. A company entitled to an additional allowance Sowance Under S6Ction 7 (2) 0r (3) or 8 (2) or (3> sha11 not in respect of the same asset be entitled to an allowance under the Income Tax (Additional Depreciation Allowance on Business Property) Law, 5718—1958!), or the Income Tax (Additional Depreciation Allowance on Business Property) Law, 5724—19642).". Amendment of 4. In section 10 of the principal Law — section 10. (1) the words "and 45 per cent of the amount of the ordi• nary depreciation to which it is entitled from the tax year 1972 onwards", in paragraph (1) shall be replaced by the words "and 45 per cent of the amount of the ordinary depreciation to which it was entitled in the tax years 1972 to 1974 and 90 per cent of the amount of the ordinary depreciation to which it is entitled from the tax year 1975 onwards"; (2) the words "and 30 per cent of the amount of the ordi• nary depreciation to which it is entitled from the tax year 1972 onwards" in paragraph (2) shall be replaced by the words "and 30 per cent of the amount of ordinary depreciation to which it was entitled in the tax years 1972 to 1974 and 75 per cent of the amount of the ordinary depreciation to which it is entitled from the tax year 1975 onwards"; (3) the words "the additional allowance shall from the tax year 1972 onwards be 10 per cent of the amount of the ordinary depreciation to which the company is entitled" in paragraph (3) shall be replaced by the words "the additional allowance shall in the tax years 1972 to 1974 be 10 per cent of the amount of the ordinary depreciation to which the company was entitled and from the tax year 1975 onwards 55 per cent of the amount of the ordinary depreciation to which it is entitled; (4) the following paragraph shall be added after para• graph (3): "(4) if the asset was acquired in the period between the 24th Adar Bet, 5730 (1st April, 1970) and the 27th Adar Bet, 5733 (31st March, 1973), the additional al• lowance shall from the tax year 1975 onwards be 20 per cent of the amount of ordinary depreciation to which the company is entitled.". Amendment of 5. In section 13 of the principal Law section 13. (1) paragraph (1) of the definition of "loan" shall be re• placed by the following paragraph: 1) Sefer Ha-Chukkim of 5718, p. 168; LSI vol. XII, p. 186. 2) Sefer Ha-Chukkim of 5724, p. 84; LSI yo\. XVIII, p. 74. 82 "(1) it was received on or before the third devaluation date;"; (2) in the definition of "linkage differentials" — (a) the word "second" shall be replaced by the word "third"; (b) paragraph (2) shall be replaced by the following paragraph: "(2) an amount which owing to an increase of the cost-of-living index in the period between the third devaluation date and the 21st Tam- muz, 5735 (30th June, 1975) was added to the principal of a loan linked to that index and, in the case of a loan received on or before the second devaluation date, also an amount added in the period between the second devaluation date and the 8th Nisan, 5734 (31st March, 1974) and, in the case of a loan received on or before the first devaluation date, also an amount added in the period between the first devaluation date and the 23rd Adar Bet, 5730 (31st March, 1970);". 6. In section 14 (a) of the principal Law, the words "and linkage Amendment of differentials paid in the period between the third devaluation date and the section 14. 19th Nisan, 5735 (31st March, 1975) shall be deemed to have been paid in the tax year 1975" shall be added at the end. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 24) JOINT INVESTMENTS TRUST (AMENDMENT No. 2) LAW, 5736—1975* 1. In section 35(a)(2) of the Joint Investments Trust Law, 5721— Amendment of 1961x) (hereinafter referred to as "the principal Law"), the expression section 35. "25 per cent" •shall be replaced by the expression "35 per cent". * Passed by the Knesset on the 26th Tevet, 5736 (30th December, 1975) and pub• lished in Sefer Ha-Chukkim No. 791 of the 4th Shevat, 5736 (6th January, 1976), p. 78; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1210 of 5736, p. 45. 1) Sefer Ha-Chukkim of 5721, p. 84 — LSI vol. XV, p. 79; Sefer Ha-Chukkim of 5725, p. 39 — LSI vol. XIX, p. 40. 83 Amendment of 2. In section 36 of the principal Law, the expression "21 per cent" section 36. shall be replaced by the expression "26 per cent". Amendment of 3. In section 41 of the principal Law, the expression "21 per cent" section 41. shall replaced by the expression "26 per cent". Application. 4. This Law shall apply from the tax year 1976 onwards. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 25) ESTATE DUTY (AMENDMENT No. 6) LAW, 5736—1975* Amendment of 1. In section 2B of the Estate Duty Law, 5709—1949l) (hereinafter section 2B. referred to as "the principal Law"), the expression "10,000 pounds" in paragraph (3) shall be replaced by the expression "60,000 pounds". Amendment of 2. In section 2C (a) of the principal Law — section 2C. (1) the expression "25,000 pounds" in paragraph (1) shall be replaced by the expression "100,000 pounds"; (2) the expression "15,000 pounds" shall wherever ap• pearing in paragraph (2) (a) be replaced by the expression "60,000 pounds"; (3) the expression "10,000 pounds" in paragraph (2) (b) shall be replaced by the expression "40,000 pounds"; (4) the expressions "17,500 pounds" and "22,500 pounds" in paragraph (2) (c) shall be respectively replaced by the ex• pressions "60,500 pounds" and "80,500 pounds"; (5) the expressions "5,000 pounds" and "10,000 pounds" in paragraph (3) shall be respectively replaced by the ex• pressions "20,000 pounds" and "40,000 pounds". Passed by the Knesset on the 26th Tevet, 5736 (30th December, 1975) and pub• lished in Sefer Ha-Chukkim No. 791 of the 4th Shevat, 5736 (6th January, 1976), p. 79; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1202 of 5735, p. 435. Sefer Ha-Chukkim of 5709, p. 187 — LSI vol. Ill, p. 95; Sefer Ha-Chukkim of 5716, p. 45 — LSI vol. X, p. 40; Sefer Ha-Chukkim of 5717, p. 143 —LSI vol. XI, p. 152; Sefer Ha-Chukkim of 5724, p. 179 — LSI vol. XVIH, p. 179; Sefer Ha- Chukkim of 5729, p. 190 — LSI vol. XXIII p. 206; Sefer Ha-Chukkim of 5735, p. 232 — LSI vol. XXIX, p. 310. 84 3. Section 2D of the principal Law shall be replaced by the following Replacement of section: section 2 D. "Rates ot 2D. The rates of estate duty shall be as follows: estate duty On any part of the first 105,000 pounds — 5 p. ct. on any part of the next 105,000 pounds — 10 p. ct. on any part of the next 120,000 pounds — 15 p. ct. on any part of the next 135,000 pounds — 20 p. ct. on any part of the next 135,000 pounds — 25 p. ct. on any part of the next 150,000 pounds — 30 p. ct. on any part of the next 150,000 pounds — 35 p. ct. on any part of the next 300,000 pounds — 40 p. ct. on any part of the next 300,000 pounds — 45 p. ct. on any part of the next 750,000 pounds — 50 p. ct. on any part of the next 750,000 pounds — 55 p. ct. on any further amount — 60 p.ct.". 4. In section 5A of the principal Law, the expression "150,000 pounds" Amendment of shall wherever appearing be replaced by the expression "450,000 pounds" section 5A. and the expression "50,000 pounds" shall be replaced by the expression ."150,000 pounds". 5. In section 10(b) of the principal Law, the expression "6,000 Amendment of section 10. pounds" shall be replaced by the expression "25,000 pounds". 6. In the Estate Duty (Amendment No. 5) Law, 5735—19751), the Amendment of Estate Duty following section shall be added after section 3 : (Amendment No. 5) Law. ''Applicability. 4. The provisions of sections 2 and 3 shall apply whether the injury occurred before or after the coming into force of this Law.". 7. Sections 2B, 2C, 2D, 5A and 10 of the principal Law as amended Applicability. by this Law shall apply to property of the estate of a person who died after the 19th Nisan, 5735 (31st March, 1975). YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State l) Sefer Ha-Chukkim of 5735, p. 232; LSI vol. XXIX, p. 310. (No. 26) EMERGENCY REGULATIONS (REGISTRATION AND MOBILISATION OF EQUIPMENT) (EXTENSION OF VALIDITY) LAW, 5736—1975* Extension of 1. The validity of the Emergency Regulations (Registration and Mobi- validity. lisation of Equipment), 5717—19560 (hereinafter referred to as "the Regulations"), as amended by the Schedule, is hereby extended until the 24th Tevet, 5741 (31st December, 1980). SCHEDULE (Section 1) Amendment of 1• In regulation 1 of the Regulations — e definition of "equipment", paragraph (1) shall be^ ^ ״ .regulation 1 replaced by the following paragraph: "(1) aircraft, vessels, trains and vehicles of any kind, engine-propelled or other, including transport machi nery, and parts thereof, as well as spare parts, auxiliary equipment, attached equipment, and accessories to equipment as aforesaid; (1A) tractors, digging, quarrying, construction, lifting and loading machinery and other engineering equip ment and parts thereof, including spare parts, auxiliary equipment, attached equipment and accessories to en gineering equipment as aforesaid (all these hereinafter referred to as "engineering equipment")"; (2) the following definition shall be inserted after the defi nition of "equipment": "empowered commander" means a person empowered by a mobilisation officer to be an autho rised commander, provided that for the purposes of equip ment other than surplus equipment within the meaning of regulation 15A(a) there shall not be empowered as aforesaid= (1) a soldier unless he holds at least the rank of rav seren (major); * Passed by the Knesset on the 26th Tevet, 5736 (30th December, 1975) and pub lished in Sefer Ha-Chukkim No. 791 of the 4th Shevat, 5736 (6th January, 1976) p. 80; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1208 of 5736, p. 4. 1) Kovetz Ha-Takkanot No. 649 of 5717, p. 334; Sefer Ha-Chukkim of 5731, p. 156 — LSI vol. XXV, p. 149; Sefer Ha-Chukkim of 5732, p. 46 — LSI vol. XXVI, p. 47. 86 (2) a non-soldier unless he is employed in the service of the Army in a capaicty corresponding at least to the rank of rav seren". 2. H In regulation 3 (d) of the Regulations, paragraph (5) shall be re Amendment of .3־marked as paragraph (6) and the following paragraph shall be inserted regulation before it: "(5) the owner of any engineering equipment shall notify the mobilisation officer each month not later than the fifth day of the month, by registered post, of the current location of the equipment if a change has occurred in its location since he last gave particulars of the equipment under subregulation (a) or since he last notified the mobilisation officer under this subregulation.". 3. In regulation 4 (b) of the Regulations, the expression "in paragraph Amendment of (1)" shall be replaced by the expression "in paragraph (1) or (1A)". regulation 4. 4. In regulation 6 of the Regulations — Amendment of regulation 6. (1) the words "a person empowered by him (hereinafter referred to as an "empowered commander") in subregulation (a) shall be replaced by the words "an empowered com mander"; (2) the words "pursuant to regulation 15A or 15B" in subregulation (e) (1) (a) shall be replaced by the words "pursuant to regulation 15A, 15B or 15C"; (3) subregulation (f) shall be replaced by the following subregulation: "(g) Where a command under subregulation (a) is is sued while an order under regulation 8 (a) is in force, and at the time the command is to be complied with the owner of the equipment is absent by reason of service under the Defence Service Law (Consolidated Version), 5719—1959!), or for any other reason, a relative of full age of the owner of the equipment living with him, shall deliver to the mobilisation officer or an empowered com mander or a person empowered by either, at his request, particulars of the equipment as far as they are known to him, including particulars as to its current location, and any relevant document or other thing in his possession, in order to enable the equipment to be taken possession of and operated; this subregulation shall not derogate from regulation 5 (b).". l) Sefer Ha-Chukkim of 5719, p. 286; LSI vol. XIII, p. 328. 87 Amendment of 5. In regulation 6A of the Regulations, the expression "in paragraph regulation 6A. yy, in paragraph (!) snan be replaced by the expression "in paragraph (1) .׳'(or (1A re^laUonlOA 6 Regulation 10A of the Regulations shall be re-marked as regulation reguaion ; 10A (a), the expression "in paragraph (1)" appearing therein shall be replaced by the expression "in paragraph (1) or (1A)" and the following subregulation shall be added thereafter: "(b) Notwithstanding the provisions of subregulation (a), a person competent to make a general order under section 12 (b) of the Commodities and Services (Control) Law, 5718—19571), may refrain from making it in respect of property being vessels or air craft or a particular class of either, and so long as no general order applies to any such property, it shall, for the purpose of fixing com pensation for the use thereof, be treated as property being- equip ment within the meaning of paragraph (2) or (3) of the definition of the term.". Amendment of 7. In regulation 13 of the Regulations — regulation 13. (1) the words "imprisonment for a term of one year or a fine of one thousand pounds" in subregulation (a) shall be replaced by the words "imprisonment for a term of eighteen months or a fine of 10,000 pounds"; (2) the words "a fine of three thousands pounds" in sub- regulation (b) shall be replaced by the words "a fine of 30,000 pounds"; (3) the following subregulation shall be inserted after sub- regulation (b): "(bl) Where an owner of equipment commits an of fence under subregulation (a) (1) by non-fulfilment of a duty imposed on him by regulation 6 (a) or an offence under subregulation (a) (4) and at the time the offence is committed an order under regulation 8 is in force, the court which convicts the offender may, in addition to any other penalty, require him to pay to the Treasury an amount not exceeding treble the amount to which he is entitled under regulation 10 or 10A or would be entitled thereunder if the order to place the equipment at the disposal of the Army had been complied with for the period prescribed therein or, where no period is pre scribed therein, for a period of thirty-five days; this i) Sefer Ha-Chukkim of 5718, p. 24; LSI vol. XII, p. 24. 88 provision shall not derogate from the power of the court under section 29 of the Penal Law (Modes of Punishment) (Consolidated Version), 5730—19701)•"- 8. Regulation 15A (f) of the Regulations is hereby repealed. Amendment of regulation 15A. 9. Regulation 15B of the Regulations shall be replaced by the fol• Replacement of lowing regulation: section 15B. "Mobilisation of 15B. Regulation 15A shall apply to diesel engines and diesel machinery diesel generators and to engineering equipment as if and engineering equipment. they were vehicles, but every reference in that regulation to the Minister of Transport shall for this purpose be deemed to be a reference to the Minister of Commerce and Industry in the case of diesel engines and diesel generators and to the Minister of Labour in the case of engineering equipment.". 10. In regulation 15C of the Regulations, subregulation (b) shall be Amendment of replaced by the following subregulation: section 15C. "(b) The Minister of Commerce and Industry and the Minister of Labour and a competent authority and mobilisation officers appointed by them may only exercise their powers under these Regulations to the extent deemed necessary by them to ensure essential supplies and services in a time of emergency.". 11. This Law shall have effect from the 27th Tevet, 5736 (31st December, Commencement. 1975). YITZCHAK RABIN SHIMON PERES Prime Minister Minister of Defence EFRAYIM KATZIR President of the State 1) Sefer Ha-Chukkim of 5730, p. 109 ; LSI vol. XXIV, p. 112. 89 (No. 27) INCOME TAX ORDINANCE (AMENDMENT No. 23) LAW, 5736—1976* Amendment of 1. In section 9 of the Income Tax Ordinance!), paragraph (20) shall section 9. be re-marked as paragraph 20 (a) and the following subparagraph shall be added thereafter: "(b) meals received by an employee from his employer at the place of employment, or reductions of the prices thereof, of an aggregate value not exceeding 1,440 pounds in any one year.". Commencement. 2. Section 1 shall have effect from the 22nd Tammuz, 5735 (1st July, 1975). YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 28) EMERGENCY REGULATIONS (COMMODITIES AND SERVICES (CONTROL) — FURTHER PROVISIONS) (EXTENSION OF VALIDITY) LAW, 5736—1976« Extension of 1. The validity of the Emergency Regulations (Commodities and validity. Services (Control) — Further Provisions, 5736—1975)2) (hereinafter refer• red to as "the Regulations") is hereby extended until the 9th Tammuz, 5736 (7th July, 1976). Power of 2. The Minister of Commerce and Industry may at any time, by order early published in Reshumot, revoke the whole or part of the Regulations or revocation. restrict powers held thereunder. * Passed by the Knesset on the 4th Shevat, 5736 (6th January, 1976) and published in Sefer Ha-Chukkim No. 792 of the 13th Shevat, 5736 (15th January, 1976). p. 84; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1223 of 5736, p. 152. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120 — NV vol. I, p. 145; Sefer Ha-Chukkim of 5735, p. 168 — LSI vol. XXIX, p. 215. •**) Passed by the Knesset on the 5th Shevat, 5736 (7th January, 1976) and published in Sefer Ha-Chukkim No. 792 of the 13th Shevat, 5736 (15th January, 1976), p. 84; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1225 of 5736, p. 158. 2) Kovetz Ha-Takkanot of 5736, p. 226. 90 3. This Law shall have effect from the 4th Shevat, 5736 (6th January, Commencement. 1976). YITZCHAK RABIN HAIM BAR-LEV Prime Minister Minister of Commerce and Industry EFRAYIM KATZIR President of the State (No. 29) RED SHIELD OF DAVID (AMENDMENT) LAW, 5736—1976* 1. In section 2 of the Red Shield of David Law, 5710—19501), Amendment of section 2 subsection (d) shall be re-marked as subsection (e) and the following subsection shall be inserted before it: "(d) The Society shall be exempt from all customs duty, purchase tax and other compulsory payments on the import of instruments, medical equipment and medicaments serving the objects of the Society specified in section 3, including ambulances, mobile blood units with their equipment and accessories, communication equip• ment and equipment and material for the Blood Bank, whether purchased by the Society or received by it by way of donation. Exemption under this subsection shall only apply to purchased goods if the Director-General of the Ministry of Commerce and Industry or a person empowered by him in that behalf has certified that goods of this kind are not manufactured in Israel or are not obtainable in Israel in the quantity and quality required or if an order of the Minister of Labour under section 16 of the Emergency Labour Service Law, 5727—19672), is in force". YITZCHAK RABIN VICTOR SHEMTOV Prime Minister Minister of Health EFRAYIM KATZIR President of the State * Passed by the Knesset on the 11th Shevat, 5736 (13th January, 1976) and pub• lished in Sefer Ha-Chukkim No. 793 of the 30th Shevat, 5736 (22nd January, 1976), p. 86; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1213 of 5736, p. 76. 1) Sefer Ha-Chukkim of 57\0, p. 175; LSI vol.IV.p. 127. 2) Sefer Ha-Chukkim of 5727, p. 86; LSI vol. XXI, p. 82. 91 (No. 30) LOCAL AUTHORITIES (REGULATION OF GUARD-SERVICE) (AMENDMENT No. 2) LAW, 5736—1976* Amendment of 1. In section 1 of the Local Authorities (Regulation of Guard- section l. Service) Law, 5721—19611) (hereinafter referred to as "the principal Law") — (1) the definition of "the officer-in-charge of the guard- service" shall be replaced by the following definition: ""officer-in-charge of the guard-service" means a person appointed under section 2 (b) to be an officer-in-charge of the guard-service"; (2) the following definition shall be added at the end: "inhabitant" includes a person who lives in a settlement without being registered in the Population Register as an inhabitant thereof but who does not fulfil a duty of guard-service in another settlement.". Replacement of 2. Section 2 of the principal Law be replaced by the following section: section 2. "Responsibility 2. (a) The Government may decide that the guard- servicefor guard. - service in a particular area shall be in the hands-of the Police (such an area hereinafter referred to as a "Police responsibility area"). (b) The Major-General-in-Command or a per• son empowered by him or, in a Police responsibility area, a District Police Commander or a person em• powered by him may appoint an officer-in-charge of the guard-service. (c) The Minister of the Interior may, after consultation with the Minister of Defence or, in respect of a Police responsibility area, after consultation with the Minister of Police, by order, impose a duty of guard-service on the inhabitants of any settlement or settlements (such an order hereinafter referred to as a "guard order"). * Passed by the Knesset on the 17th Shevat, 5736 (19th January, 1976) and pub• lished in Sefer Ha-Chukkim No. 794 of the 27th Shevat, 5736 (29th January, 1976), p. 88; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1184 of 5735, p. 294. l) Sefer Ha-Chukkim of 5721, p. 169 — LSI vol. XV, p. 184; Sefer Ha-Chukkim of 5730, p. 130 — LSI vol. XXIV, p. 136. '92 I (d) A decision of the Government under sub section (a) and a guard order shall not require pub lication in Reshumot". 3. In section 3 of the principal Law, the words'"section 99 of the Amendment of Municipal Corporations Ordinance, 1934" shall be replaced by the- sectlon3• words "Chapter Thirteen of the Municipalities Ordinance1)" and the words "section 9 of the Local Councils Ordinance, 1941" shall be replaced by the words "Article Three of Chapter Two of the Local Coun cils Ordinance2)". 4. In section 7 of the principal Law, the figure "55" shall be re- Amendment of 7־ placed by the figure "60". sectlon 5. In section 8 of the principal Law, subsection (c) shall be re-marked Amendment of as subsection (d) and subsection (b) shall be replaced by the following sectlon 8- subsections: "(b) A person on whom a duty of guard-service has been imposed shall be presumed to be fit for guard-service so long as the contrary has not been proved in such manner as the Minister of the Interior shall in consultation with the Minister of Health prescribe. (c) Notwithstanding the provision of subsection (b), where a person has been found unfit for service or temporarily unfit for service under the Defence Service Law (Consolidated Version), 5719—1959 3), his fitness for guard-service under this Law shall be determined in the manner prescribed by the Minister of the Interior in consultation with the Minister of Health.". 6. Section 9 of the principal Law shall be replaced by the follow- Replacement of ing section: section9• "Limitation of 9. A person shall not be required to do guard- duty with regard duty more than twice a month, nor for an aggregate of more than ten hours in any one month in the period between the 1st Tishri and the 30th Nisan or eight hours a month in the period between the 1st Iyar and the 29th Elul, unless the Major-General-in-Command or a District Police Commander, as the case may be, deems it necessary for security reasons to direct gene rally or in respect of a particular settlement or several settlements that the number of hours or times be increased (such a direction being in this section referred to as an "increase direction"). .So. 8,p. 197; ATKvol. I, p. 247־(DineiMedinat Yisrael (Nusach Chadash (1 2) DineiMedinat Yisrael (Nusach Chadash) No. 9, p. 256; NVvol. I, p. 315. 3) Sefer Ha-Chukkim of 5719, p. 286; LSI vol. XII, p. 328. 93 (b) .An increase direction shall not be issued more than once a year and shall be valid for thirty days: Provided that the Minister of Defence or the Minister of Police, as the case may be, may, after consultation with the Minister of the Interior and the Foreign Affairs and Security Committee of the Knesset approve ad• ditional periods of validity. (c) An increase direction shall not require pub• lication in Reshumot. (d) The hours and days when a person fulfils a duty of protection service under the Emergency Re• gulations (Protection of Educational Institutions), 5734—19741), shall be included in the computation of guard-duty under this section.". Replacement of 7. Section 11 of the principal Law shall be replaced by the following section 11. section: "Overriding 11. A duty of service imposed on a person under the duties. Civil Defence Law, 5711—19512), or a duty imposed on a person under the Defence Service Law (Consolidated Version), 5719—1959, supersedes a duty imposed on him under this Law.". Amendment of 8. In section 16 of the principal Law, the opening passage, beginning section 16. with the words "shall be liable to a fine of 300 pounds" shall be replaced by the words "shall be liable to a fine of 1,500 pounds or, if he has already been convicted of such an offence in the past, to imprisonment for a term of three months or to a fine of 3,000 pounds". Amendment of 9. Section 19 of the principal Law shall be re-marked as section 19 (a) section 19. and the following subsections shall be added thereafter: "(b) The State shall bear the expenses of implementing this Law. (c) The amount of the expenses shall be in accordance with a budget approved by the Minister of the Interior after consultation with the Minister of Finance.". YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State 1) Sefer Ha-Chukkim of 5735, p. 18; LSI vol. XXIX, p. 25. 2) Sefer Ha-Chukkim of 5711, p. 78; LSI vol. V, p. 72. 94 (No. 31) TRAFFIC ORDINANCE (AMENDMENT No. 13) LAW, 5736—1976* 1. In section 1 of the Traffic Ordinance1) — Amendment of section 1. (1) the words "as well as an offence under the Safety Belt (Vehicles) Law, 5733—1973 2), or under the Regulations made thereunder" shall be added at the end of the definition of "traffic offence"; . (2) the words "as well as an offence under the Safety Belt (Vehicles) Law, 5733—1973, or under the Regulations made thereunder" shall be added at the end of the definition of "finable offence". YITZCHAK RABIN GAD YAACOBI Prime Minister Minister of Transport EFRAYIM KATZIR President of the State (No. 32) INCOME TAX ORDINANCE (AMENDMENT No. 2 of 5722—1962) (AMENDMENT No. 7) LAW, 5736—1976« 1. In section 1 of the Income Tax Ordinance (Amendment No. 2) Law, Amendment of 5722—19620 — section 1. (1) the figure "1974" in the marginal note shall be replaced by the figure "1978"; * Passed by the Knesset on the 17th Shevat, 5736 (19th January, 1976) and pub• lished in Sefer Ha-Chukkim No. 794 of the 27th Shevat, 5736 (29th January, 1976), p. 90; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1204 of 5735, p. 450. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 7, p. 173; NVvoL I, p. 222. Sefer Ha-Chukkimol 5735, p. 219 — LSI vol. XXIX, p. 292. 2) Sefer Ha-Chukkim of 5733, p. 250 — LSI vol. XXVII, p. 288. **) Passed by the Knesset on the 18th Shevat, 5736 (20th January, 1976) and pub• lished in Sefer Ha-Chukkim No. 794 of the 27th Shevat, 5736 (29th January, 1976), p. 90; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1182 of 5735, p. 287. 3) Sefer Ha-Chukkim of 5722, p. 129 — LSI vol. XVI, p. 120; Sefer Ha-Chukkim of 5725, p. 37 — LSI vol. XIX, p. 120; Sefer Ha-Chukkim of 5727, p. 103 — LSI „ vol. XXI, p. 100; Sefer Ha-Chukkim of 5729, p. 223 — LSI vol. XXIII, p. 243; Sefer Ha-Chukkim of 5732, pp. 20 and 67 — LSI vol. XXVI, pp. 23 and 76; Sefer Ha-Chukkim of 5733, p. 170 — LSI vol. XXVII, p. 185. 95 (2) the words "in the tax years 1962—1974" in subsection (a) shall be replaced by the words "in the tax years 1962 to 1978"; (3) the words "and the 31st of March, 1975" in subsection (b) shall be replaced by the words "and the 31st of March, 1979"; (4) the words "in the tax years 1967 to 1974" in subsection (c) shall be replaced by the words "in the tax years 1967 to 1978". YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 33) DEVELOPMENT LOAN (AMENDMENT No. 14) LAW, 5736—1976* Amendment of 1. In section 6 of the Development Loan Law, 5710—19601) (here• section 6. inafter referred to as "the principal Law"), the following paragraph shall be added after paragraph (2): "(3) that bonds issued only as nominative bonds shall not be negotiable, chargeable or transferable, except for transfers by operation of law, or that they shall only be partly nego• tiable, chargeable and transferable, on such conditions as have been prescribed.". Amendment of 2. In section 8 of the principal Law, the words "subject to any section 8. condition or restriction under section 6 (3)" shall be inserted after the word "transferable" in subsection (b). YITCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State * Passed by the Knesset on the 18th Shevat, 5736 (20th January, 1976) and pub• lished in Sefer Ha-Chukkim No. 794 of the 27th Shevat, 5736 (29th January, 1976), p. 91; the Bill and an Explanatory Note were published in Hatzd'ot Chok No. 1220 of 5736, p. 124. 1) Sefer Ha-Chukkim of 5720, p. 47 — LSI vol. XIV, p. 39; Sefer Ha-Chukkim, of 5722, p. 129 — LSI vol. XVI, p. 121; Sefer Ha-Chukkim of.5735, p. 204 — LSI vol. XXIX, p. 271. 96 (No. 34) INVALIDS (PENSIONS AND REHABILITATION) (AMENDMENT No. 9) LAW, 5736—1976* 1. In section 1 of the Invalids (Pensions and Rehabilitation) Law Amendment of (Consolidated Version), 5719—1959l) (hereinafter referred to as "the section 1. principal Law"), the expressions "86 per cent" and "78 per cent" in the definition of "the determining wage" shall be respectively replaced by the expressions "95 per cent" and "86 per cent" 2. In section 6 (c) of the principal Law — Amendment of section 6. (1) the expression "50 per cent" in paragraph (1) shall be replaced by the expression "55 per cent"; (2) the expression "70 per cent" in paragraph (2) shall be replaced by the expression "77 per cent"; (3) the expression "90 per cent" in paragraph (3) shall be replaced by the expression "100 per cent". 3. In section 7 of the principal Law — Amendment of section 7. (1) the expression "Yod Dalet" in subsection (a) shall be replaced by the expression "Tet Vav"; (2) subsection (d) shall be replaced by the following sub section : "(d) An invalid of a special degree of invalidity deter mined under rules set out in regulations shall, so long as he is of a degree of invalidity as aforesaid, be paid an addition of 30 per cent to his pension.". 4. The following section shall be inserted after section 7A of the Addition of principal Law: section 7B. "Allowance to 7B. An invalid whose degree of invalidity is not less finance than 50 per cent shall, in addition to his pension, be special requirements. paid a monthly amount to finance special requirements arising out of his invalidity, as shall be prescribed by regulations with the approval of the Labour Affairs Committee of the Knesset.". Passed by the Knesset on the 18th Shevat, 5736 (20th January, 1976), and pub lished in Sefer Ha-Chukkim No. 794 of the 27th Shevat, 5736 (29th January, 1976), p. 91; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1196 of 5735, p. 406. Sefer Ha-Chukkim of 5719, p. 276 — LSI vol. XIII, p. 315; Sefer Ha-Chukkim of 5721, p. 156 — LSI vol. XV, p. 165; Sefer Ha-Chukkim of 5725, pp. 6 and 292 —LSI vol. XIX, pp. 4 and 319; Sefer Ha-Chukkim of 5727, p. 139—LSI vol. XXI, p. 138; Sefer Ha-Chukkim of 5728, p. 168 — LSI vol. XXII, p. 189; Sefer Ha- .vol. XXV, p. 120; Sefer Ha-Chukkim of 5732; p /5־¿ — Chukkim of 5731, p. 125 139 — LSI vol. XXVI, p. 156; Sefer Ha-Chukkim of 5733, p. 254 — LSI vol. XXVII, p. 292. 97 Amendment of 5. The following subsection shall be added at the end of section 18 section 18. of the principal Law: "(d) An invalid who owing to mental illness or an intellectual defect files a claim for a pension after the time prescribed in sub• section (a) and only when a guardian has been appointed for him shall be paid the pension as from the date of his discharge from military service if the guardian files the claim within one year from the date of his appointment. In every other case, the pension shall be paid as from the day on which the guardian files the claim; but the pensions officer may direct that it shall be paid as from an earlier date, so long as such date is not earlier than the date of discharge.". Amendment of 6. In section 36A(3) of the principal Law, the words "under the section 36A. Civil Wrongs Ordinance, 1944" shall be replaced by the words "under the Civil Wrongs Ordinance (New Version)1) or under the Road Ac• cident Victims (Compensation) Law, 5735—19752)". Addition of 7. The following section shall be inserted after section 43A of the section 43B. principal Law: "Medical 43B. A discharged soldier shall, during the period treatment and between the filing of his claim and his recognition as pension for discharged an invalid, receive medical treatment at the expense of soldier. the State and a pension payable to an invalid under section 43. When the pension has been paid, the fol• lowing provisions shall apply: (1) If the discharged soldier is recog• nised as an invalid, the pension shall be re• garded as a payment on account of the pension due to him under section 43; (2) if the discharged soldier is not re• cognised as an invalid, he shall return the pension paid to him as aforesaid, at such time and on such conditions as the pensions officer shall prescribe.". Commencement. 8. (a) Sections 1 to 3 and 7 shall have effect from the 9th Nisan, 5734 (1st April, 1974). (b) Section 4 shall have effect from the 20th.Nisan, 5735 (1st April, 1975). !) ' DineiMedinat Yisrael(Nusach Chadash) No. 10, p. 266; NV\o\. II, p. 5. 2) Sefer Aa-CtóW/n of 5735, p. 234; LS/vol.XXIX,p. 311. 98 9. (a) Where before the publication of this Law an invalid was Transitional entitled to the payment of his pension as from the date of his discharge provision, from military service or where its payment to him as from that daté could have been directed had section 18 (d) of the principal Law been in force at the time, he shall be paid the pension as from the date of his discharge as aforesaid or as from the 26th Iyar, 5727 (5th June, 1967), whichever is the later, provided that he files an application therefor with the pensions officer not later than one year from the date of publication of this Law. (b) The pensions officer may direct that the whole or part of a pension as referred to in subsection (a) shall be paid as from an earlier date so long as such date is not earlier than the date of the discharge of the invalid from miltairy service; where in the relevant period the invalid was hospitalised at the expense of the State, the hospitalisation expenses shall be set off against the pension. Application for payment as aforesaid shall be made simultaneously with the application under subsection (a). YITZCHAK RABIN SHIMON PERES Prime Minister Minister of Defence EFRAYIM KATZIR President of the State (No. 35) FAMILY LAW AMENDMENT (MAINTENANCE) (AMENDMENT) LAW, 5736—1976* 1. In the Family Law Amendment (Maintenance) Law, 5719—19591)> Additionof the following section shall be inserted after section 2: section 2A. "Taking 2A. Notwithstanding anything provided in the Wom- iincome of spouse. en's Eclual Rights Law> 5711-19512), in determining the extent of the maintenance a person is required to provide to his spouse, the court may take into account the income of the spouse from work or property and, if it sees fit, from any other source.". YITZCHAK RABIN Prime Minister EFRAYIM KATZIR President of the State * Passed by the Knesset on the 18th Shevat, 5736 (20th January, 1976) and pub• lished in Sefer Ha-Chukkim No. 794 of the 27th Shevat, 5736 (29th January, 1976), p. 93; the Bill and an Explanatory Note were published in HatzcCot Chok No. 1168 of 5735, p. 174. !) Sefer Ha-Chukkim of 5719, p. 72; LSI vol. XIII, p. 73. 2) Sefer Ha-Chukkim of 5711, p. 248; LSI vol. V, p. 171. 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 משרד המשפטים (התימה מוסדית). 4010523.000מ3^22 ~~ ^'"" * (No. 36) PUBLIC BODIES (ELECTIONS) (AMENDMENT) LAW, 5736—1976* Amendment of 1. In the Public Bodies (Elections) Law, 5714—19541), section 2 shall e '°n ' be re-marked as section 2 (a) and the following section shall be inserted thereafter: "(b) Elections to any of the institutions of an employees' orga• nisation or an employers' organisation, as well as elections held under the supervision of an employees' organisation or an em• ployers' organisation or of any of its institutions, shall be elections for the purposes of sections 8, 9, 10 and 11 even where the provi• sions of subsection (a) have not been applied.". YITZCHAK RABIN YOSEF BURG Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 37) EMERGENCY LABOUR SERVICE (AMENDMENT No. 2) LAW, 5736—1976« 1. In section 9 of the Emergency Labour Service Law, 5727—19673) (hereinafter referred to as "the principal Law"), the words "in the under• taking of work to which that person has been assigned for labour service and which shall be specified in the order" shall be replaced by the words Amendment of "for labour service as shall be specified in the order". section 9. 2. In section 10 of the principal Law, the words "in the undertaking and job in respect of which he is called up for training" shall be replaced by the words "as specified in the notice". Amendment of * Passed by the Knesset on the 18th Shevat, 5736 (20th January, 1976) and pub- section 10. ijshed in Sefer Ha-Chukkim No. 794 of the 27th Shevat, 5736 (29th January, 1976), p. 93; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1208 of 5736, p. 17. 1) Sefer Ha-Chukkim of 5714, p. 110; LSI vol. VIII, p. 92. **) Passed by the Knesset on the 25th Shevat, 5736 (27th January, 1976) and pub• lished in Sefer Ha-Chukkim No. 795 of the 4th Adar Alef, 5736 (5th February, 1976), p. 96; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1216 of 5736, p. 96. 2) Sefer Ha-Chukkim of 5727, p. 86 — LSI vol. XXI, p. 82; Sefer Ha-Chukkim of 5733, p. 259 — LSI vol. XXVII, p. 300. 100 3. In section 11 of the principal Law, the words "or. in the occupations Amendment of and in respect of the categories of workers specified in the Schedule, section 11. twelve" shall be inserted after the word "three", and the words "The Minister of Labour may vary the Schedule with the approval of the Labour Affairs Committee of the Knesset" shall be added at the end. 4. In section 14 of the principal Law, the words "to the undertaking" Amendment of shall be replaced by the words "to the place of training". section 14. 5. The following section shall be inserted after section 14 of the Addition of principal Law: section 14A. "Compensation. 14A. Where a person called up for training under section 9 for a consecutive period exceeding one day would be entitled to compensation under the Reserve Service (Compensation) Law (Consolidated Version), 5719—1959 !) and the regulations thereunder (such Law and such regulations hereinafter referred to as "the Com• pensation Law") if he served in the Reserves for that period, the provisions of the Compensation Law, ex• cept section 2, shall apply as if he served in the Reserves for that period, and he shall be entitled to compensa• tion for the whole of the period of training as if he were entitled to payment under the said section 2. (b) The Minister of Labour may, in consul• tation with the Minister of Finance and with the ap• proval of the Labour Affairs Committee of the Knesset, enact by regulations provisions for the payment of compensation out of the Treasury, in such manner, on such conditions and at such rates as shall be prescribed in such regulations, to persons called up for training as specified in subsection (a) but who would not be entitled to compensation under the Compensation Law if they served in the Reserves.". 2 6. In section 2 of the Severance Pay Law, 5723—1963 ), the following Amendment of paragraph shall be added after paragraph (9) : Severance "(10) training for labour service under the Emergency Labour Pay Law. Service Law, 5727—1967;". 3 7. In section 4(b) of the Annual Leave Law, 5711—1951 ), the fol• Amendment of lowing paragraph shall be added after section 7 : Annual "(8) training for labour service under the Emergency Labour Leave Law. Service Law, 5727—1967.". 1) Sefer Ha-Chukkim of 5719, p. 306 — LSI vol. XII, p. 350; Sefer Ha-Chukkim of 5735, p. 194 — LSI vol. XXIX, p. 258. 2) Sefer Ha-Chukkim of 5723, p. 136; LSI vol. XVII, p. 161. 3) Sefer Ha-Chukkim of 57'11, p. 234; LSI vol. V, p. 155, 101 Amendment of 8. In section 3 of the State Service (Benefits) Law (Consolidated State Service Version), 5730—1970 >), paragraph (7) shall be re-marked as paragraph (Benefits) Law. (8) and the following paragraph shall be inserted before it: "(7) training for labour service under the Emergency Labour Service Law, 5727—1967;". Addition of 9. The following shall be added at the end of the principal Law: Schedule. "SCHEDULE (Section 11) (1) Physicians; (2) nurses (male and female); (3) para-medical personnel ; (4) technical medical personnel ; (5) other academic medical personnel ; (6) medical administrative and medical maintenance personnel; (7) drivers; (8) crane and workshop operatives in ports; (9) power grid workers ; (10) metal workers in production for defence purposes; (11) operators of mechanical engineering equipment; (12) administrative and technical workers, examiners and valuers in transport". YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State (No. 38) SUCCESSION (AMENDMENT No. 3) LAW, 5736—1976* Amendmentof 1• In section 12 of the Succession Law, 5725—19652), the words section 12. "provided that if the deceased leaves both children and parents the parents take one sixth of the estate" shall be deleted. 1) Sefer Ha-Chukkim of 5730, p. 65; LSI vol. XXIV, p. 57. * Passed by the Knesset on the 2nd Adar Alef, 5736 (3rd February, 1976) and published in Sefer Ha-Chukkim No. 796 of the 11th Adar Alef, 5736 (12th Febru• ary, 1976) p. 98; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1202 of 5735, p. 434. 2) Sefer Ha-Chukkim of 5725, p. 63 — LSI vol. XIX, p. 58; Sefer Ha-Chukkim of 5729, p. 249 — LSI vol. XXIII, p. 276; Sefer Ha-Chukkim of 5733, p. 269 —LSI vol. XXVII, p. 316. 102 2. This Law shall also apply to the succession of a person who died Transitional before its coming into force provided that on the date of its coming into provision, force a succession order declaring the rights of his heirs had not yet been made. YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State (No. 39) CHAMBER OF ADVOCATES (TEMPORARY PROVISIONS No. 2) LAW, 5736—1976* 1. Notwithstanding the provision of section 35(a) of the Chamber Shortening of 1 q 1 yin8 of Advocates Law, 5721—1961 ), the period of qualifying service of a ^ (jj person who has served in the Defence Army of Israel under an engage• ment for permanent service shall be only eighteen months if — (1) on the date of the coming into force of this Law he was serving under an engagement as aforsaid and had not less than one year left to serve thereunder, or he engaged to serve as aforesaid after the coming into force of this Law, by a first or further engagement, for a period of not less than one year; (2) his service as aforesaid consisted in a type, of duties defined by the Minister of Justice by order upon the re• commendation of the Minister of Defence; (3) he has actually completed his service referred to in paragraph (1); (4) his qualifying service has not been shortened under any other enactment; and (5) he begins his qualifying service within one year after actually completing his service referred to in paragraph (1), but not later than the 25th Tevet, 5741 (1st January, 1981). YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State Passed by the Knesset on the 2nd Adar Alef, 5736 (3rd Febryary, 1976) and published in Sefer Ha-Chukkim No. 796 of the 11th Adar Alef, 5736 (12th Feb• ruary, 1976), p. 98; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1196 of 5735, p. 408. Sefer Ha-Chukkim of 5721, p. 178; LSI vol. XV, p. 196. 103• (No. 40) COMPULSORY EDUCATION (AMENDMENT No. 10) LAW, 5736—1976* . Amendment of 1. In section 2 of the Compulsory Education Law, 5709—1949 *) section 2. (hereinafter referred.to as "the principal Law"), subsection (b) shall be replaced by the following subsection: "(b) Notwithstanding the provision of subsection (a), compulsory education for adolescents of the age of fifteen years shall be in• troduced gradually by orders to be made by the Minister of Ed• ucation and Culture in consultation with the Committee on Ed• ucation and Culture of the Knesset. The introduction of compul• sory education as aforesaid shall be completed not later than the beginning of the school year 5742.". Amendment of 2. In section 4 (b) of the principal Law, paragraph (3) shall be re• section 4. placed by the following paragraph: "(3) a court trying an offence under this subsection shall in each case hear the opinion of a qualified welfare worker, within the meaning of the Welfare Services Law, 5718—19582), or of an attendance officer and, as far as possible, the opinion of a psycho• logical adviser working at the school attended by the child; for the purposes of this paragraph, "attendance officer" means a State employee or employee of a local authority empowered for this purpose by the Minister of Education and Culture.". Amendment of 3. In section 6 of the principal Law, subsection (a) shall be replaced section 6. by the following subsections: "(a) The following are entitled to free education at an official educational institution: "(1) a person liable to compulsory education under this Law; (2) a person who, being of the age of sixteen or seventeen years, has not yet completed his compulsory education, until he completes his studies under a study programme for Class X, provided that compulsory education for fifteen- year-olds applied at his place of residence during the two years preceding the beginning of his studies as aforesaid. * Passed by the Knesset on the 2nd Adar Alef, 5736 (3rd February, 1976) and published in Sefer Ha-Chukkim No. 796 of the 11th Adar Alef, 5736 (12th Feb• ruary, 1976), p. 99; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1179 of 5735, p. 276. 1) Sefer Ha-Chukkim of 5709, p. 287 — LSI vol. Ill, p. 125; Sefer Ha-Chukkim, of 5710, pp. 126 and 314 — LSI vol. IV, pp. 91 and 184; Sefer Ha-Chukkim of 5713, p. 140 — LSI vol. VII, p. 116; Sefer Ha-Chukkim of 5729, pp. 33, 176 and 178 — LSI vol. XXIII, pp. 39, 192 and 195; Sefer Ha-Chukkim of 5731, p. 146 — LSI vol. XXV, p. 139; Sefer Ha-Chukkim of 5732, pp. 102 and 122 — LSI vol. XXVI, pp. 121 and 137. 2) Sefer Ha-Chukkim of 5718, p. 103; LSI vol. XII, p. 120. 104 (al) Notwithstanding the provisions of subsection (a), the Min• ister may, by order, direct that a person liable to compulsory education, or a person entitled to free education by virtue of subsection (a) (2), whose studies at an official educational institu• tion cannot, in the opinion of the Minister, be ensured, shall study at another educational institution, and theTreasury shall defray his tuition fee at such institution.". Amendment of 4. In section 4 and 5 of the Compulsory Education (Amendment No. Compulsory 5) Law, 5729—19691), the expression "the school year 5737" shall be Education replaced by the expression "the school year 5742". (Amendment No. 5) Law. 5. This Law shall apply in respect of the school year 5736 and sub• Application. sequent years. YITZCHAK RABIN AHARON YADLIN Prime Minister Minister of Education and Culture EFRAYIM KATZIR President of the State (No. 41) WAGE PROTECTION (AMENDMENT No. 11) LAW, 5736—1976* 1. In section 1 of the Wage Protection Law, 5718—19582) (herein- Amendmentof after referred to as "the principal Law"), the definition of "benevolent sectloa1• fund" shall be replaced by the following definition: ""benefit fund**" means any sick-fund, pension or insurance fund or other similar fund of which the employee is a member or a benefit fund within the meaning of section 47 of the Income Tax Ordinance 3) to which the employer and employees or only the employer has or have to make payments under a collective agreement or an extension order or under a contract of employment or any other agreement between the employees and the employer to which the benefit fund has given its consent, or a body corporate 1) Sefer Ha-Chukkim of 5729, p. 176; LSI vol. XXHI, p. 192. * Passed by the Knesset on the 2nd Adar Alef, 5736 (3rd February, 1976) and published in Sefer Ha-Chukkim No. 796 of the 11th Adar Alef, 5736 (12th Feb• ruary, 1976), p. 100; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1201 of 5735, p. 430. 2) Sefer Ha-Chukkim of 5718, p. 86 — LSI vol. XII, p. 100; Sefer Ha-Chukkim of 5733, p. 270 — LSI vol. XXVII, p. 317. ** This term rather than "benevolent fund" is now used in this translation to render Hebrew kupat gemel (Tr.). 3) DineiMedinat Yisrael(Nusach Chadash) No. 6, p. 120; NV\o\. I, p. 145. 105 payments to which the Minister of Labour has approved for the purposes of section 14 of the Severance Pay Law, 5723—1963 Amendment of 2. In section 19A of the principal Law — section 19A. (1) in subsection (a), the words "or by way of deduction'" shall be replaced by the words "or whether the employer is required to deduct it", the words "deducted by the employer" shall be replaced by the words "required to be deducted by the employer" and the words "it was deducted" shall be replaced by the words "it was required to be deducted"; (2) in subsection (b) (1), the words "deducted by the em• ployer" shall be replaced by the words "required to be de• ducted by the employer"; (3) subsection (c) shall be replaced by the following sub• sections: "(c) A benefit fund shall in respect of every employee insured with it keep a personal card showing the particulars prescribed by regulations. An employer shall deliver to a benefit fund particulars in respect of his employee, as the Minister of Labour may prescribe by regulations. (d) An amount due from an employer to a bene• fit fund as specified in subsection (a) shall for the purposes of the rights of the employee or his successor against the benefit fund be deemed to have been paid in time. (e) Where six months have passed since the time prescribed in subsection (a) and, before the debt in respect of the employee is paid, an event occurs entitling him or his successor to receive a payment or a service in kind from the benefit fund, the benefit fund may claim from the employer an amount equal to the amount paid or to be paid, or the monetary value of the service in kind provided or to be provided, by it to the em• ployee or his successor, less any amount which would have been payable to the employee or his successor or to the employer, or to both, by reason of that event either by way of a lump payment or of future payments if the employee had left the fund on the day the event entitling as aforesaid occurred. (f) The capitalisation of future payments or the monetary value of future services in kind shall for the purposes of subsections (e) and (j) be calculated 1) Sefer Ha-Chukkim of 5723, p. 136; LSI vol. XVII, p. 161. 106 mutatis mutandis in the same way as the capitalisation of pensions and the monetary value of benefits in kind are calculated under section 185 of the National Insurance Law (Consolidated Version), 5728—19681). (g) The Regional Labour Court may reduce a payment due to a benefit fund from an employer as an indemnification under subsection (e) if it sees cir• cumstances justifying its doing so. (h) Where six months after the time prescribed in subsection (a) the employer's debt to the benefit fund, referred to in subsection (a), has not been paid, the benefit fund may notify the employee to such effect in writing, with copy to the employer, and if six months after delivery of the notification the debt to the benefit fund has still not been paid, the provisions of sub• section (d) shall no longer apply to that debt if the Regional Labour Court finds that the delay in col• lecting it was due to no negligence on the part of the benefit fund or was due to circumstances otherwise justifying its not collecting the debt. (i) Where entitlement to a payment or a service in kind by a benefit fund to an employee or his successor arises in the period between the time prescribed in sub• section (a) and the expiration of six months after deli• very of notification under subsection (h), the benefit fund shall not be entitled to divest itself of its liability under subsection (d) even if the delay was due to no negligence on its part or was due to other justifying circumstances. (j) (1) Where a general collective agreement, or an extension order, within the meaning of the Collective Agreements Law, 5717— 19572), applies to any employee, requiring the employer to pay an amount for him to a benefit fund, as specified in subsection (a), and the employer does not deliver to the benefit fund particulars prescribed by regulations concerning the employee and fails to pay any amount in respect of him, subsections (d) to (i) shall not apply to the employee but upon the employer's debt to the benefit fund in respect of the employee, 1) Sefer Ha-Chukkim of 5728, p. 108; LSI vol. XXII, p. 114. 2) Sefer Ha-Chukkim of 5717, p. 63; LSI vol. XI, p. 58. as aforesaid, being paid within three months from the time indicated in subsection (a) and before an event occurs entitling the employee or his successor to receive a pay• ment or a service in kind from the benefit fund, then, for the purposes of the rights of the employee or his successor against the benefit fund, the debt shall be deemed to have been paid in time. (2) Where the benefit fund makes any payment or provides any service in kind to the employee or his successor by virtue of paragraph (1) within one year from the day on which the employer's debt is paid as aforesaid, the Regional Labour Court may require the employer to indemnify the benefit fund therefor if it sees circumstances justifying its doing so. (k) The Minister of Labour may prescribe by regulations modes of delivering notifications or partic• ulars for the purposes of this section and of proving delivery thereof.". Addition of 3. Section 19B of the principal Law shall be relocated and re-marked sections 19B as section 19 and the following sections shall be inserted after section andl9C. 1QA. "Insurance with 19B. (a) The provisions of section 19A (d) to (k) several benefit (hereinafter referred to as "the provisions") shall not funds. apply in respect of a payment or a service in kind as therein referred to by a benefit fund if the employee or his successor is entitled to receive it in full, by reason of the same event, from another benefit fund by virtue of an agreement between the employer and the em• ployee and not by virtue of the provisions. (b) Where the employee or his successor is by virtue of an agreement as referred to in subsection (a) entitled to a payment or a service in kind not equal in value to the one he would have received from the first- mentioned benefit fund by reason of the same entitling event, or is by virtue of the provisions entitled, by reason of the same event, to a payment or a service in kind as aforesaid by another benefit fund, all the benefit funds shall jointly defray the payment or provide the service in kind, and the burden shall, in the absence of agree- 108 ment between them, be distributed as the Regional Labour Court deems just in the circumstances of the case. (c) When an employee or his successor applies to one of the benefit funds in order to realise his right under the provisions, that fund shall make the payment or provide the service in full, to the extent due to him, and upon its doing so the employee or his successor shall no longer, by reason of the same event, have a right against another benefit fund in respect of that payment or service, and the benefit fund which made the payment, or provided the service in kind, as afore• said shall be entitled to be reimbursed by another benefit fund as referred to in subsection (b). Saving of 19C. The provisions of sections 19A and 19B shall not rights. derogate from the rights of an employee against an employer or a benefit fund under any enactment, agreement or the rules of the benefit fund or from the mutual rights and obligations of an employer and a benefit fund under an agreement or the rules of the benefit fund.". Section 27 of the principal Law is hereby repealed. Repeal of section 27. 5. Section 28 of the principal Law shall be replaced by the following Replacement of section: section 28. "Right of 5. The following shall have a direct right of claim claim. against the employer: (1) the person for whom an amount de• ducted under section 25 is intended; (2) a benefit fund with regard to an amount due to it from the employer as specified in section 19A and with regard to wage delay compensation in respect of any such amount.". 6. In section 127AAA of the National Insurance Law (Consolidated Amendment of Version), 5728—1968, in the definition of "benefit fund", the words "or National a contract of employment" shall be replaced by the words "or under the Insurance Law. provisions of a contract of employment or any other agreement between the employee and the employer to which the benefit fund has given its consent". 109 Commencement. 7. This Law shall come into force on the 1st Nisan, 57736 (1st April, 1976). YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State (No. 42) MUNICIPALITIES ORDINANCE (AMENDMENT No. 19) LAW, 5736—1976* Amendment of 1. In section 274B of the Municipalities Ordinance1), the following section 274B. shall be added at the end of subsection (b): "for a consecutive period not exceeding six months beginning on the day on which it ceased to be used, and in the case of a new building ,during the first six months from the day on which its construction was completed and it was fit for use". Commencement. 2. This Law shall come into force on the 1st Nisan, 5736 (1st April, 1976). YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State (No. 43) BANKRUPTCY ORDINANCE (AMENDMENT No. 6) LAW, 5736—1976« Amendment of 1. In section 3 (2) of the Bankruptcy Ordinance, 1936 2) (hereinafter section 3. referred to as "the Ordinance"), the following shall be added at the end: "and where a bill of exchange, promissory note or cheque has been * Passed by the Knesset on the 2nd Adar Alef, 5736 (3rd February, 1976) and published in Sefer Ha-Chukkim No. 796 of the 11th Adar Alef, 5736 (12th Feb• ruary, 1976), p. 103; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1148 of 5735, p. 37. 1) Dinei Medinat Yisrael {Nusach Chadash) No. 8, p. 197 — NV vol. I, p. 247; ' Sefer Ha-Chukkim of 5735, p. 219 — LSI vol. XXIX, p. 292. •*) Passed by the Knesset on the 9th Adar Alef, 5736 (10th February, 1976) and published in Sefer Ha-Chukkim No. 797 of the 18th Adar Alef (19th February, 1976), p. 106; the Law is based on two Bills published, each with an Explanatory Note, in Hatza'ot Chok No. 1165 of 5735, p. 167, and Hatza'ot Chok No. 1180 of 5735, p. 279, respectively. 2) P.G. of 1936, Suppl. I, p. 21 (English Edition); Sefer Ha-Chukkim of 5709, p. 23 — LSI vol. Ill, p. 18; Sefer Ha-Chukkim of 5713, p. 94 — LSI vol. VII, p. 78; Sefer Ha-Chukkim of 5725, p. 125 — LSI vol. XIX, p. 122; Sefer Ha-Chukkim of 5729, p. 252 LSI vol. XXIII, p. 278; Sefer Ha-Chukkim of 5735, p. 105 — LSI vol. XXIX, p. 135. 110 submitted to the Execution Office for execution under section 81A of the Execution Law, 5727—19671). and the debtor has not filed op• position to the execution or his opposition has been dismissed by a judgement or decision which is no longer appealable, such bill of ex• change, promissory note or cheque shall be treated as such a judgement". 2. In section 5 (1) (a) of the Ordinance, the words "to fifty pounds" Amendment of shall be replaced by the words "to ten thousand pounds". section 5. Amendment of 3. In section 7 of the Ordinance, subsection (1) shall be replaced by section 7. the following subsection: "(1) A debtor shall not be entitled to present a bankruptcy petition unless — (a) his debts amount to ten thousand pounds; (b) the number of his creditors is at least two; and (c) he attaches to his petition a statement of his debts and assets in the form prescribed by regulations; and the Court shall not make a receiving order upon his petition unless it is satisfied that, having regard to execution proceedings which have been taken or can yet be taken against the debtor and to the other circumstances of the case, bankruptcy proceedings are the appropriate course.". 4. In section 14 of the Ordinance, the following subsection shall be Amendment of added at the end: section 14. "(9) The Official Receiver may exempt the debtor from sub• mitting a statement under this section if he considers that the statement submitted by the debtor under section 7 (1) (c) contains the information required for the proper conduct of the bankruptcy.". 5. In section 29 of the Ordinance, the following subsection shall be Amendment of inserted after subsection (1): section 29. "(la) The Court may also annul the adjudication if in its opinion the further conduct of the bankruptcy will not benefit the creditors; but an annulment for this reason shall not re• move from the bankrupt a legal disability arising out of the adjudication unless the Court decides to remove such dis• ability.". 6. In section 30 (1) of the Ordinance, the words "and a demand for Amendment of maintenance due under a judgement and payable after the making of the section 30. receiving order" shall be inserted after the words "otherwise than by rea• son of a contract or promise". Sefer Ha-Chukkim of 5727, p. 116 — LSI vol. XXI, p. 112; Sefer Ha-Chukkim of 5729, p. 16 — LSI vol. XXIII, p. 19. Ill Addition of 7. The following section shall be inserted after section 55 of the section 55 A. Ordinance: "Appropriation 55A. (a) On the application of a person to whom to person maintenance due from the bankrupt under judgement is entitled to maintenance. payable after the making of the receiving order the Court may from time to time appropriate to such person, out of the property or income of the bankrupt, such sums of money as it thinks fit. (b) An appropriation under subsection (a) shall be treated as a payment under the judgement. (c) The provisions of this section shall apply notwithstanding anything contained in section 49.". Amendment of 8. In section 111 (2) of the Ordinance, the words "fifty pounds" shall section ill. be replaced by the words "ten thousand pounds". YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State (No. 44) SERVICES IMPORT TAX LAW, 5736—1976* Definitions. 1• In this Law — "the Director" means the Director of Customs and Excise; "allocation of currency" means — (1) the sale of foreign currency for Israeli pounds; (2) a withdrawal from an Israeli resident's foreign-currency account, including payment abroad for an imported service by way of setting off a debt due to the person acquiring the service; (3) the drawing of foreign currency originating in a loan re• payable in foreign currency to be allocated as specified in para• graph (1) or (2), but does not include an allocation of one of the kinds specified in the First Schedule; the Minister of Finance may, with the ap• proval of the Finance Committee of the Knesset, vary the Schedule; * Passed by the Knesset on the 2nd Adar Alef, 5736 (23rd February, 1976) and published in Sefer Ha-Chukkim No. 798 of the 24th Adar Alef, 5736 (25th Feb• ruary, 1976), p. 111; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1230 of 5736, p. 184. 112 "authorised dealer" means an authorised dealer within the meaning of regulation 3 (b) of the Defence (Finance) Regulations, 1941'), the Bank of Israel, and a person permitted by the Controller of Foreign Exchange to sell foreign currency; "Controller of Foreign Exchange" means the Controller of Foreign Exchange within the meaning of the Defence (Finance) Regulations, 1941, or a person empowered by him; "service" means anything done for another for consideration, other than a sale of goods, and includes the conferment of any right, interest or other intangible asset, and inter alia, the con• ferment of a right to exhibit a cinematograph film or to use any intellectual or industrial property, as well as the grant of any assistance or gift, and in the case of a person who has received a currency allocation for the purpose of a journey abroad, also a sale of goods within the limits set by the allocation permit; "imported service" means a service the consideration for which is paid in foreign currency originating in a currency allocation 2. (a) A tax shall be imposed on the import of services, other than Imposition of the services specified in the Second Schedule. tax on acquisi• . (b) The Minister of Finance shall, by order, prescribe the rate of tion of imported the tax. The rate shall be a flat one and may be a percentage of the price service. of the service or a specific amount or both or may be calculated in some other manner. (c) The Minister of Finance may, with the approval of the Fi• nance Committee of the Knesset, vary the Schedule. 3. The provisions of the Customs and Excise Duties (Variation of Application of Tariff) Law, 5709—1949 2), shall apply mutatis mutandis to orders under Customs and Excise Duties section 2 (b) as if they were orders under section 1 of that Law, except (Variation of that the words "two months" shall be replaced by the words "two weeks" Tariff) Law. and that the time between Knesset terms shall be taken into account. 4. The price of a particular imported service is the amount of foreign p,•^ 0f currency allocated for its acquisition. The price of the aggregate of the imported imported services acquired by an Israeli resident with the money of a service• currency allocation received by him for the purposes of a journey is the amount of currency allocated for such journey. 5. The person liable to services import tax is the recipient of the cur- Person liable rency allocation for the purpose of paying for the imported service. t0 tax' 1) P.G. of 1941, Suppl. II, p. 1647 (English Edition). 2) Sefer Ha-Chukkim of 5709, p. 154 ; LSI vol. HI, p. 69. 113 Application of 6. The duty of paying services import tax shall also apply to the State liability. and tQ any person exempt from indirect tax under any other law. Appeal. 7. A person who disputes his liability to services import tax may ap• peal to the District Court in the area of jurisdiction of which his place of residence is situated. The filing of appeal shall not delay the payment of the tax unless the Court otherwise directs. Date of accrual 8. (a) Liability to services import tax shall accrue at the date of of liability to tax. the allocation of currency for the acquisition of the service. (b) Notwithstanding the provision of subsection (a), the Minister of Finance may, in the order imposing, increasing or reducing the tax, prescribe that the order shall also apply to the acquisition of imported services for the acquisition of which foreign currency has already been allocated but has not yet been utilised. Date for pay• 9. (a) Services import tax shall be paid at the date of the accrual of ment of tax. liability thereto, provided that the Minister of Finance may prescribe a later date for particular kinds of services or currency allocations. (b) Where an order under section 8 (b) has been made, the tax or the tax differentials shall be paid within seven days from the date of the coming into force of the order, but in the case of an allocation for the purposes of a journey abroad, not later than the beginning of the journey. Refund of tax 10. (a) Where it is proved to the satisfaction of the Controller of on cancellation Foreign Exchange that the acquisition of a particular imported service of acquisition of service. has been cancelled or its price reduced and that the whole or part of the currency allocated for its acquisition has been returned, the tax shall be refunded accordingly within thirty days. (b) Where it is proved to the satisfaction of the Director that the journey of a person who has paid tax on a currency allocation for a journey abroad has been cancelled and that the allocated currency has been returned, the tax shall be refunded to that person within thirty days. Collection 11. (a) Services import tax shall be collected by the authorised of tax. dealer at the time of the allocation of the currency or by a person desig• nated by the Minister of Finance in respect of particular kinds of services or particular kinds of currency allocations for the acquisition of an im• ported service. (b) A person who has collected tax as aforesaid shall transfer it to the Treasury in the manner and at the date prescribed by regulations. 114 (c) The Taxes (Collection) Ordinance1) shall apply to the collec• tion of tax not paid, or collected and not transferred to the Treasury, but it may also be collected by way of a civil action. 12. Where services import tax has not been paid or has been collected Default fine. and not transferred to the Treasury in due time, the person who has failed to pay or to transfer it shall pay a default fine thereon at the rate of 2 per cent per month, and for the purposes of collection the fine shall be treated as tax. 13. (a) To ensure the implementation of this Law or regulations Request for information thereunder, the Director may request a person liable to pay or collect and documents. services import tax to deliver to him relevant information and enable him to inspect and photograph relevant books and documents, and he may also request him to deliver to him such books or documents or photographs thereof. (b) Where the photograph of a document bears confirmation by the Director and the person liable or his representative that it conforms with the original, it shall to all intents and purposes be treated as if it were the original. 14. (a) To ensure the implementation of this Law or regulations Powers of search and thereunder, a person empowered in that behalf by the Director may — seizure. (1) enter and search any place, provided that a place used as residence may only be searched under an order of a Judge of a Magistrates' Court; (2) seize any book or document if an offence is suspected to have been committed and the book or document is likely to serve as evidence of its commission; (3) without derogating from the provisions of any law re• lating to privileged evidence examine any person, provided that he shall not on its own initiative examine the spouse, child or parent of the person liable to pay or collect the tax; (4) prevent the entry of a person into a means of transpor• tation for the purpose of a journey abroad unless he proves that the tax has been paid or that he is not liable thereto. (b) A person empowered for the purposes of subsection (a) shall have the powers of a police officer for the prevention or discovery of offences and the powers of a commissioned officer of police of the rank of inspector under section 2 of the Criminal Procedure (Evidence) Ordinance2), and section 3 of that Ordinance shall apply to a statement taken down by him. !) Laws of Palestine vol. II, p. 1399 (English Edition). 2) Laws of Palestine vol. I, p. 467 (English Edition). 115 Offences. 15. (a) A person who in any of the following ways contravenes a provision of this Law or any regulation thereunder shall be liable to imprisonment for a term of one year or a fine of 20,000 pounds or treble the benefit derived or intended to be derived by him, whichever is the greater amount: (1) he does not collect the tax, or does not transfer it to the Treasury in due time, as provided in section 11; (2) having been requested to deliver any information, book or document he is bound to deliver, he refuses or fails to do so; (3) having been requested to appear for examination, he refuses or fails to do so; (4) he delivers without reasonable explanation any in• correct or inexact information or delivers any document or book containing any such information; (5) he destroys or alters any document or book he has been requested to deliver; (6) he obstructs or prevents a person from carrying out a duty imposed on him by virtue of this Law. (b) A person who commits any of the offences specified in sub• section (a) with intent to evade the payment of tax or its transfer to the Treasury shall be liable to imprisonment for a term of three years or a fine of 100,000 pounds or treble the amount of tax the payment of which or the transfer of which as aforesaid he evades or intends to evade. Offence for 16. A person who contravenes any provision of this Law for the contra• which no vention of which no penalty is prescribed or who contravenes any pro• penalty is prescribed. vision of regulations thereunder the contravention of which is stated in .such regulations to be an offence shall be liable to imprisonment for three months or a fine of 5,000 pounds. Offence by 17. Where an offence under this Law or any regulations thereunder body of persons. is committed by a body of persons, whether incorporated or unincorpor• ated, every person'who at.the time of its commission is an active director, secretary, trustee, authorised representative, active partner, accountant or bookkeeper or other responsible official of such body shall also be guilty of the offence unless he proves that it was committed without his knowledge or that he took all appropriate measures to ensure compliance with the provisions of this Lawi Responsibility 18. Where, in the course of the activity of a person liable to the tax, for acts by an authorised dealer or a person designated by the Minister of Finance employee. under section 11 (a), an offence under this Law or any regulations thereunder is committed by any clerk, worker or agent, the person liable 116 to the tax, the authorised dealer or the person designated by the Minister of Finance as aforesaid shall also be guilty thereof unless he proves that it was committed without his knowledge or that he took all appropriate measures to ensure compliance with the provisions of this Law. 0״¡¿]**^^ a) Where a person has committed or is suspected of an offence) .19 under this Law or any regulations thereunder, the Director may, with the consent of that person, accept a monetary composition from him of an amount not exceeding the highest fine which may be imposed for that offence, and upon his doing so, every legal proceeding in respect of that offence shall be discontinued; but where an information has been filed, a monetary composition may only be accepted if the Attorney- General has ordered a stay of the proceedings. (b) The Director may make the acceptance of a monetary com position conditional on an undertaking to refrain from any offence against this Law or any regulations thereunder for a period, not exceeding three years, prescribed by him. The undertaking shall be a recognizance in an amount not exceeding the highest fine which may be imposed for the offence, with or without a third-party guarantee, as the Director may prescribe. (c) Where a person is convicted of an offence from which he has undertaken under subsection (b) to refrain, the recognizance shall be collected as a debt under this Law. 20. (a) A person shall not disclose any information which reaches him Secrecy, in the course of the implementation of this Law unless — (1) the Minister of Finance has permitted its disclosure; (2) he has been required to disclose it in a legal proceeding under this Law or a tax law within the meaning of the Tax Law Amendment (Exchange of Information between Tax Authorities), Law 5727—19671). (b) Where any information reaches a person under subsection (a), he shall be regarded as having received it in the course of the implemen tation of this Law. (c) Where a person unlawfully discloses any information reaching him in the course of the implementation of this Law, he shall be liable to imprisonment for a term of one year or a fine of 20,000 pounds. 21. The Director may delegate any of his powers under this Law to Delegation another, generally or in respect of a particular matter or region. of powers. 1) Sefer Ha-Chukkim of 5m,p. 136; LSI vol. XXI, p. 135. 117 Implementation 22. The Minister of Finance is charged with the implementation of and regulations. this Law and may make regulations as to any matter relating to its. implementation. Commencement. 23. This Law shall come into force one day after its adoption by the Knesset. FIRST SCHEDULE (Section 1) (1) A withdrawal of currency from an exporter's foreign-currency deposit (PAMAZ YETZUAN), a resident currency transferor's deposit (TAMAM) or a tied foreign-currency deposit (PAMAZ KAVUL) of a navigation or aviation company, each within the meaning of the Direc• tions of the Controller of Foreign Exchange; (2) a withdrawal of currency from a foreign-currency deposit originating in a currency allocation for a journey abroad in connection with which services import tax was paid, such currency having been brought back to Israel; (3) a payment by way of set-off made by an exporter, including an exporter of services, in accordance with the Directions of the Controller of Foreign Exchange. SECOND SCHEDULE (Section 2 (a)) (1) Transport and insurance of goods imported to or exported from Israel; (2) capital services, being interest, dividend, profits, commissions in connection with loans, commitment fees, discount fees, and commissions in connection with forward transactions; (3) commissions in respect of the raising of capital; (4) the renting, or taking on lease, of equipment on the import of which customs duty has been paid; (5) the conferment of a right to receive benefits*; (6) passenger transportation to places abroad. YITZCHAK RABIN YEHOSHUA RABINOVITZ. Prime Minister Minister of Finance EFRAYIM KATZIR President of the State * In Hebrew: gimla'ot, i.e. pensions, gratuities and the like (Tr.). 118 (No. 45) FALLEN SOLDIERS' FAMILIES (PENSIONS AND REHABILITATION) (AMENDMENT No. 11) LAW, 5736—1976* Amendment of 1. In section 1 of the Fallen Soldiers' Families (Pensions and Re• section 1. habilitation) Law, 5710—1950!) (hereinafter referred to as "the principal Law") — (1) the following paragraph shall be added after paragraph (b) of the definition of "military service" and "service": "(c) in respect of the period up to the 17th Kislev, 5708 (30th November, 1947) — active service in an organised unit which fought in Eretz Yisrael for Israel's independence;"; (2) in paragraph (c) of the definition of "relative" — (a) the initial portion, up to the words "("bereaved parent")", shall be replaced by the words "a parent of the fallen soldier, including a step-parent and an adop• tive parent (hereinafter: "bereaved parent")"; (b) the following shall be added at the end of the final portion: "where the Pensions Officer decides as afore• said, he may direct that a pension be also paid to the other parent if he is indigent"; (3) in the definition of "the determining salary", the expres• sion "Yod" shall be replaced by the expression "Yod Bet". 2. The following section shall be inserted after section 2A of the Addition of section 2B. principal Law: "Death on 2B. A soldier who died as a result of injury, illness or service aggravation of illness occurring in the period of his presumed to be death in service shall, for the purposes of this Law, be considered consequence to have died in consequence of his service unless the of service. contrary is proved.". * Passed by the Knesset on the 17th Adar Alef (18th February, 1976) and pub• lished in Sefer Ha-Chukkim No. 799 of the 26th Adar Alef (27th February, 1976), p. 118; the Bill and an Explanatory Note were published in Hatzä'ot Chok No. 1196 of 5735, p. 409. 1) Sefer Ha-Chukkim of 5710, p. 162 — LSI vol. IV, p. 115; Sefer Ha-Chukkim of 5712, p. 287 — LSI vol. VI, p. 98; Sefer Ha-Chukkim of 5718, p. 172 — LSI vol. XII, p. 189; Sefer Ha-Chukkim of 5723, p. 36 —LSI vol. XVII, p. 45; Sefer Ha-Chukkim of 5725, p. 295 — LSI vol. XIX, p. 323; Sefer Ha-Chukkim of 5727, p. 140 — LSI vol. XXI, p. 140; Sefer Ha-Chukkim of 5728, p. 254 — LSI vol. XXII, p. 289; Sefer Ha-Chukkim of 5731, p. 126 — LSI vol. XXV, p. 121; Sefer Ha-Chukkim of 5733, pp. 66 and 252 — LSI vol. XXVII, pp. 63 and 289; Sefer Ha-Chukkim of 5735, p. 10 — LSI vol. XXIX, p. 12. 119 Replacement 3. Sections 7 and 8 of the principal Law shall be replaced by the of sections 7 following sections: and 8. "Pension 7. (a) In this section, "the determining grade" wShout** means the total amount of the salary payable to a State orphans. employee whose salary grade is "Yod" of the uniform grading and who is not paid an allowance in respect of a relative. (b) A fallen soldier's widow by whom no orphan is maintained and who on the determining day had completed her thirtieth year shall during her lifetime be paid a monthly pension as follows: (1) the amount of the determining grade if she has no income or so long as her in• come does not exceed 70 per cent of an in• come 'sufficient for her livelihood; and if she is indigent, she shall be paid a 20-per-cent addition to the pension prescribed in this paragraph; (2) 70 per cent of the determining grade so long as her income exceeds 70 per cent but does not exceed 85 per cent of an in• come sufficient for her livelihood; (3) 45 per cent of the determining grade in every other case. (c) A fallen soldier's widow by whom no orphan is maintained and who on the determining day had not yet completed her thirtieth year shall for thirty-six months from the determining day be paid a monthly pension of the amount of the determining grade. (d) Where a widow is entitled to a monthly pension under subsection (c) and thirty-six months have elapsed since the determining day, she shall sub• sequently be paid the pension on the following condi• tions and during the following times: (1) during twelve months from the ex• piration of the period of payment under subsection (c) so long as she has no income sufficient for a livelihood; (2) if she becomes indigent within twenty- four months from the expiration of the twelve-month period referred to in paragraph (1), so long as she is indigent. 120 (e) Where a widow is entitled to a monthly pension under subsection (c) or (d) and the period during which she is entitled to a pension as aforesaid has elapsed, she shall be paid a pension of an amount of 45 per cent of the determining grade so long as she has not completed her thirtieth year; and when she has paid a pension־completed her thirtieth year, she shall be under subsection (b) even if the period during which she is entitled to a pension under subsection (c) or (d) has not yet elapsed. Pension to 8. (a) In this section, "the determining grade" widow with means the total amount of the salary payable to a State orphans. employee whose salary grade is "Tet Vav" of the uni form grading and who is not paid an allowance in respect of a relative. (b) The widow of a fallen soldier who left one orphan maintained by her shall be paid a monthly pension of the amount of the determining grade. (c) The widow of a fallen sodlier who left two or more orphans maintained by her shall, in addition to . the monthly pension under subsection (b), be paid 11 per cent of the amount of the said pension for each or phan after the first. (d) So long as the widow of a fallen soldier is under the provisions of section 9 (c) not entitled to a pension under subsection (b) or (c), she shall be paid a monthly pension at the rate indicated in section 7. (e) A fallen soldier's widow no longer entitled to a pension under subsection (b) or (c) shall be paid a monthly pension at the rate indicated in section 7 (b) (1), notwithstanding the other provisions of that section.". 4. Section 10 of the principal Law shall be replaced by the following Replacement of section: section 10. "Pensions 10. (a) Every bereaved parent shall be paid a month to bereaved ly pension at the rate of 50 per cent of the total amount parents. of the salary currently obtaining in respect of a State employee whose salary grade is "Yod Bet" of the uni form grading and who is not paid an allowance is re spect of a relative. (b) A bereaved parent who has no bereaved spouse, and a bereaved parent to the credit of whose spouse a pension under section 11 (a) is paid, shall be paid a pension of an amount equal to 80 per cent of the salary referred to in subsection (a). 121 (c) A bereaved parent married to a person who is not a bereaved parent shall, so long as he is married, be paid a pension at the rate payable to two bereaved parents under subsection (a). (d) Where a bereaved parent is married to a person entitled to a pension under this Law in respect of another fallen soldier, each of them shall be paid the pension which would be paid to him or her if he or she were not married. (e) Where the pension officer is satisfied that a couple of bereaved parents have separated, he may di rect that so long as they live separately each of them shall be paid a pension as if the marriage had been dissolved. (f) A parent bereaved of more than one child shall be paid a pension at the rate of 150 per cent of the pension which would be payable to him in respect of one fallen soldier.". Amendment of 5. In section 11 of the principal Law, the words "who has no self- section 11. supporting child" shall wherever occurring be deleted. Replacement of 6. Section 12A of tne principal Law shall be replaced by the fol- sectionl2A. lowing section: "Grant to 12A. (a) Where the widow of a fallen soldier re- widowwho marries, her right to a pension under this Law, except , , ״ , ״remarries. , . , f her right under section 13, shall cease on the day of her remarriage. But the pensions officer may, on application made by her not later than the expiration of six months from the day of her remarriage, allot her a grant not exceeding an amount equal to — (1) sixty times the pension payable to a widow under section 7 (b) (1) where orphans of the fallen soldier are or were maintained by her; (2) sixty times the pension payable to a widow under section 7(b) (2) where no orphan of the fallen soldier is or was main tained by her. (b) One half of the grant under this section shall be paid to the widow upon the approval of her applica tion but not before her remarriage; the other half shall be paid to her at the expiration of two years after her remarriage and shall be calculated on the basis of the 122 rate of pension obtaining in the last month of the two- year period. (c) Where the second marriage is dissolved by the death of the spouse within five years from the day on which it was concluded or at any time as a result of pro• ceedings which began within five years from the day on which it was concluded, the woman shall from the day of the dissolution of the marriage be paid the same pen• sion as would be paid to her at that time had she not remarried, and she shall not have to return the mar• riage grant paid to her. Where at the expiration of the five-year period one or more orphans of the fallen soldier are maintained by the widow, the period shall be extended to seven years. (d) A marriage grant shall be paid to a widow only once. 7. Section 13 of the principal Law shall be replaced by the following Replacement of section 13. section: "Pensions 13. Where the widow of a fallen soldier remarries to orphans while orphans of the fallen soldier are maintained by where the widow her, she shall in their respect be paid a monthly pension remarries. at a rate as specified hereunder: (1) if one orphan is maintained by her, 60 per cent of the total amount of the salary currently payable to a State employee whose salary grade is "Tet Vav" of the uniform grading and who is not paid an allowance in respect of a relative; (2) if two or more orphans are maintained by her, the rate of pension payable to a widow under paragraph (a) with an addition of 24 per cent thereof in respect of each or• phan after the first, but so that the pension shall not exceed the total amount of the salary currently payable to a State em• ployee whose salary grade is "Tet Vav" of the uniform grading and who is not paid an allowance in respect of a relative.". 8. The following section shall be inserted after section 14 of the Addition of principal Law: section 14A. "Special 14A. (a) The widow of a fallen soldier shall, in ad- wWow on dition to her pension, be paid a grant to finance special becoming expenses resulting from her becoming widowed, as widowed. specified hereunder: 123• (1) 5,000 pounds if no orphan of the fallen soldier is maintained by her; (2) 10,000 pounds if at least one orphan of the fallen soldier is maintained by her. (b) The amount of every grant under this sec• tion shall be linked to the index within the meaning of the National Insurance Law (Consolidated Version), 5728—19681)•". Amendment of 9. In section 21A of the principal Law, the words "the Civil Wrongs section 21 A. Ordinance, 1944" in paragraph (3) shall be replaced by the words "the Civil Wrongs Ordinance (New Version)2) or the Road Accident Victims (Compensation) Law, 5735—19755).". Replacement of 10. Section 22 of the principal Law shall be replaced by the following section 22. section: "Reductions. 22. (a) In this section, "income" means income from any source whatsoever, other than a pension under this Law or assistance to a bereaved parent from a child not maintained by him or periodical payments received from abroad as compensation for damage to health caused by Nazi persecution. (b) Where a bereaved parent lives together with his spouse who is also a bereaved parent, their pensions and income shall for the purposes of reduction be cal• culated as one. (c) Where bereaved parents have an income, their pension shall every month be reduced by an amount equal to 54 per cent of their monthly income, but so that the amount of the reduction shall not exceed 85 per cent of the pension. (d) A bereaved parent shall from time to time give the pensions officer particulars of his income, in the form of a report or in any other form, as the pensions officer may request by written notice and at the time prescribed therein. 1) Sefer Ha-Chukkim of 5728, p. 108; LSI vol. XXII, p. 114. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 10, p. 266; NV vol. II, p. 5. 3) Sefer Ha-Chukkim of 5735, p. 234; LSI vol. XXIX, p. 311. 124 (e) The pensions officer may direct that the pen• sion of a bereaved parent shall during a particular finan• cial year be reduced as an advance on a reduction to be made in the following year, but so that the amount of the temporary reduction shall not exceed — (1) in the case-of a bereaved parent who has fulfilled his duty under subsection (d), the amount of the reduction calculated ac• cording to particulars given by him as afore• said concerning his income; (2) in the case of a bereaved parent who has not fulfilled his said duty, 85 per cent of the pension due to him.". 11. Section 29 of the principal Law is hereby repealed. Repeal of section 29. 12. Section 29A of the principal Law shall be re-marked as section Amendment of section 29A. 29A (a) and the following subsection shall be added thereafter: "(b) The pensions officer may pay part of the amount of the grant to the fallen soldier's child for housing pur• poses, as may be prescribed by regulations, even if he is not yet married.". 13. Section 29D of the principal Law shall be replaced by the following Replacement of section: section 29D. "Rest and 29D. A bereaved parent, and the widow of a fallen recreation soldier, in receipt of a pension shall once a year be allowance. entitled to a seven-day rest-and-recreation allowance of an amount equal to that payable in the same year to a State employee.". 14. In section 30 of the principal Law, the expression "7(a)(1)" in Amendment of subsection (f) (1.) shall be replaced by the expression "7 (b) (1)". section 30- 15. In section 36A of the principal Law the words "The same shall Amendment of apply to every salary grade of a State employee which serves as basis section 36A. for the calculation of a pension" shall be added at the end. '16. In respect of the period from the 28th Adar Bet, 5733!(1st April, Temporary 1973) to the 8th Nisan, 5734 (31st March, 1974), a bereaved parent shall, provision, instead of the pension due to him under the principal Law, be paid a monthly pension at the fate of 47 per cent of the total amount of the salary currently payable to a State employee whose salary grade is "Yod" of the uniform grading and who is not paid an allowance in respect of a 125 relative; and if he has no spouse who is also a bereaved parent, he shall in respect of the said period, instead of the pension due to him under the principal Law, be paid a monthly pension at the rate of 70 per cent of the pension due as aforesaid to a couple of parents.". Clarification. 17. It is hereby declared that the law is and has always been that a woman entitled to a pension by virtue only of section 13A, 13B or 13C of the principal Law shall not be entitled to a marriage grant under the principal Law. Commencement. 18. Section 8 shall have effect from the 13th Av, 5734 (1st August, 1974); section 7 shall have effect from the 1st Nisan, 5736 (1st April, 1976); the other sections of this Law, except sections 9 and 16, shall have effect from the 9th Nisan, 5734 (1st April, 1974). Transitional 19. Subject to the provision of section 28 (a) of the principal Law, provision. the entitlement of a person who becomes entitled under the principal Law by virtue of the provision of section 1 (1) of this Law shall relate to the period beginning on the first of the month following the publication of this Law. , YITZCHAK RABIN SHIMON PERES Prime Minister Minister of Defence EFRAYIM KATZIR President of the State (No. 46) CHAMBER OF ADVOCATES (AMENDMENT No. 9) LAW, 5736—1976* l Amendment of 1. In the Chamber of Advocates Law, 5721—1961 ) (hereinafter section 7. referred to as "the principal Law"), the words "once in three years" in section 7 (a) shall be replaced by the words "once in four years". Addition of 2. The following section shall be inserted after section 8 of the section 8A. principal Law: Passed by the Knesset on the 29th Adar Alef, 5736 (1st March, 1976) and pub• lished in Sefer Ha-Chukkim No. 800 of the 8th Adar Bet, 5736 (10th March, 1976), p. 126; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1171 of 5735, p. 181. Sefer Ha-Chukkim of 5721, p. 178 — LSI vol. XV, p. 196; Sefer Ha-Chukkim of 5722, p. 15— LSI vol. XVI, p. 13; Sefer Ha-Chukkim of 5723, pp. 66 and 145 — LSI vol. XVn, pp. 88 and 177; Sefer Ha-Chukkim No. 5725, p. 25 — LSI vol. XIX, p. 21 ; Sefer Ha-Chukkim of 5728, p. 12 — LSI vol. XXII, p. 12; Sefer Ha-Chukkim of 5731, pp. 178 and 180 — LSI vol. XXV, pp. 171 and 173 ; Sefer Ha-Chukkim of 5732, p. 36 — LSI vol. XXVI, p. 37. 126 "Deputy 8A. (a) The National Council shall elect a deputy to o^Chamber ^e ^a"rman °^tne Chamber from among the members of the Central Board. The election shall be on the basis of equal suffrage, personal and by secret ballot. (b) If the Chairman of the Chamber resigns or dies or is temporarily or permanently unable to carry out his functions, the deputy shall act as Chairman of the Chamber in his stead. 3. In section 13 of the principal Law, the following subsections shall Amendment of be added at the end: section 13. "(c) The members of a District Board shall elect a deputy to the Chairman of the District Board from among themselves. The election shall be on the basis of equal suffrage, personal and by secret ballot, (d) If the Chairman of a District Board resigns or dies or is temporarily or permanently unable to carry out his functions, the deputy shall act as Chairman of the District Board in his stead.". 4. In section 17 of the principal Law, the words "three years" shall Amendment of be raplaced by the words "four years". section 17. 5. This Law shall also apply to organs and officers of the Chamber Scope of elected in the year 5735. application. YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State (No. 47) SERVICES TAX (BANKING INSTITUTIONS AND INSURANCE COMPANIES) (AMENDMENT No. 4) LAW, 5736—1976* 1. In section 1 of the Services Tax (Banking Institutions and Insur- Amendment of ance Companies) Law, 5733—19731) (hereinafter referred to as "the a**'0111• principal Law"), paragraph (3) shall be replaced by the following para• graph: * Passed by the Knesset on the 7th Adar Bet, 5736 (9th March, 1976) and published in Sefer Ha-Chukkim No. 801 of the 16th Adar Bet, 5736 (18th March, 1976), p. 128; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1207 of 5736, p. 2. 1) Sefer Ha-Chukkim of 5733, p. 147 — LSI vol. XXVII, p. 162; Sefer Ha-Chukkim of 5734, p. 60 — LSI vol. XXVIII, p. 58; Sefer Ha-Chukkim of 5735, pp. 31 and 150 — LSI vol. XXIX, pp. 37 and 187. 127 "(3) "work income" does not include — (a) payments made to an employee to cover his expenses for, keeping a vehicle, nor the value of the use of a vehicle placed at an employee's disposal; (b) payments made to an employee to cover his expenses for keeping a telephone at his place of residence; (c) work income as referred to in section 3 (i) of the Ordinance, but includes a pension and, in the case of an insurer, includes also 35 per cent of an insurance commission; for this purpose, "insurance commission" means amounts paid by. an insurer in the tax year to an insurance agent and benefits he has given him, either directly or indirectly, as commission, and other similar payments, including reimbursement of expenses;". Amendment of 2. In section 2 (b) of the principal Law, the words "and 5 per cent section 2. in respect of the tax years 1974 and 1975" shall be replaced by the words "5 per cent in respect of the tax year 1974 and 7.5 per cent in respect of the tax year 1975". Amendment of 3. Section 4 (a) (3) of the principal Law shall be replaced by the fol• section4. lowing section: "(3) A person liable to services tax in respect of the tax year 1975 shall make four advance payments, each equal to the fol• lowing proportion of the income under section 2 for the preceding tax year: on the 10th July and the 10th September — 2 per cent; (b) on the 10th December — 2.5 per cent; (c) on the 10th March — 3.25 per cent.". YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 48) VEGETABLE PRODUCTION AND MARKETING BOARD (AMENDMENT No. 2) LAW, 5736—1976* 1. In the Vegetable Production and Marketing Board Law, 5719— Addition of 1959x), the following section shall be inserted after section 28: section 28A. "Prohibition of 28A. (a) Vegetable surpluses shall not be destroyed destruction of in unreasonable quantities without a permit from the vegetable surpluses. Minister of Agriculture or the Director-General of the Ministry of Agriculture, and such a permit shall not be issued unless the person issuing it is satisfied that it has not been found possible to apply the surpluses to any useful purpose. Where it appears to the Minister or the Director-General that under existing circum• stances the surpluses can be used for social welfare purposes, he may refrain from issuing a permit as aforesaid. (b) For the purposes of subsection (a) — (1) the Minister of Agriculture shall pre• scribe by regulations, with the approval of the Economic Committee of the Knesset, what are unreasonable quantities of vege• table surpluses; (2) the Minister of Social Welfare shall prescribe social welfare purposes by a notice which shall be brought to the knowledge of the Economic Committee of the Knesset. (c) The Minister of Agriculture may delegate his power under subsection (a) to an Assistant Director- General or Regional Director of the Ministry of Agri• culture. (d) Where the Minister of Agriculture or the Director-General of the Ministry of Agriculture does not issue a permit under subsection (a) because it ap• pears to him that the vegetable surpluses can be used for a social welfare purpose, the Minister of Social Welfare shall, in coordination with the Minister of Agriculture, * Passed by the Knesset on the 7th Adar Bet, 5736 (9th March, 1976) and published in Sefer Ha-Chukkim No. 801 of the 16th Adar Bet, 5736 (18th March, 1976), p. 129; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1200 of 5735, p. 428. 1) Sefer Ha-Chukkim of 5719, p. 222 — LSI vol. XIII, p. 245; Sefer Ha-Chukkim of 5722, p. 31 — LSI vol. XVI, p. 22. 129 prescribe procedure for the distribution of the vegetable surpluses. (e) The Minister of Agriculture and the Mi nister of Social Welfare shall once in six months report to the Economic Committee of the Knesset regarding the implementation of the provisions of this section.". YITZCHAK RABIN AHARON UZAN Prime Minister Minister of Agriculture EFRAYIM KATZIR President of the State (No. 49) •1976־—ADVANCE PAYMENT LAW, 5736 Advance 1. The Government is hereby authorised to accept from the Bank of payment to Government by Israel (hereinafter referred to as "the Bank") and the Bank is hereby Bank of authorised to make to the Government an advance payment of Israel. 5,650,000,000 pounds. Conditions of 2. The conditions, and times of repayment, of the advance payment advance payment. shall be laid down by agreement between the Minister of Finance and the Governor of the Bank with the approval of the Finance Committee of the Knesset. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 50) SALE (APARTMENTS) (ASSURANCE OF INVESTMENT OF PERSONS ACQUIRING APARTMENTS) (AMENDMENT) LAW, ״*1976—5736 Amendment of !, in section 1 of the Sale (Apartments) (Assurance of Investment section 1 of Persons Acquiring Apartments) Law, 5735—19741) (hereinafter re ferred to as "the principal Law"), in the definition of "sale", the words * Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub lished in Sefer Ha-Chukkim No. 802 of the same date, p. 132; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1237 of 5736, p. 223. •*) Passed by the Knesset on the 21st Adar Bet, 5736 (23rd March, 1976) and pub lished in Sefer Ha-Chukkim No. 803 of the 1st Nisan, 5736 (1st April 1976), p. 134; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1229 of 5736, p. 175. 1) Sefer Ha-Chukkim of 5735, p. 14; LSI vol. XXIX, p. 18. 130 "includes the grant of a lease for a period of twenty-five years or more" shall be replaced by the words "includes the grant of a lease for a period of more than twenty-five years". 2. In section 2 (4) of the principal Law, the expression "section 127,! Amendment of section 2. shall be replaced by the expression "section 126". Addition of 3. The following sections shall be inserted after section 2 of the sections 2A principal Law: and 2B. "Replacement 2A. A seller who has assured the moneys of the pur• of security. chaser under section 2 (1) or (2) may replace the security with one of the modes of security under section 2 (3), (4) or (5), unless another mode has been stipulated in the contract of sale, provided that construction of the apart• ment has been completed and the purchaser has been given possession thereof; the provisions of this section shall not derogate from the provisions of section 3. Assurance of 2B. Where the land on which the sold apartment is moneys of situated is Israel lands, within the meaning of the Basic purchaser of 1 apartment on Law: Israel Lands ), the seller shall only have to assure Israel lands. the moneys of the purchaser under section 2 until — (1) construction of the apartment has been completed in accordance with the con• tract of sale; (2) possession of the apartment has been given to the purchaser; and (3) a contract has been signed between the purchaser and the Israel Lands Administra• tion (hereinafter referred to as "the Ad• ministration") by which the administration undertakes to have the purchaser registered as the lessee of the apartment for a period of more than twenty-five years, free from every charge or obligation to charge, attachment or any other third-party right, other than a charge or obligation to charge entered against the purchaser, and to compensate the purchaser if it fails to do so.". l) Sefer Ha-Chukkim of 5720, p. 56; LSI vol. XIV, p. 49. 131 Amendment of J 4. In section 6 of the principal Law, the words "including regulations section 6. prescribing modes of proving the completion of construction of an apart• ment for the purposes of sections 2A and 2B (1) "shall be added at the end. YITZCHAK RABIN AVRAHAM OFFER Prime Minister Minister of Housing EFRAYIM KATZIR President of the State (No. 51) RESERVE SERVICE (COMPENSATION) (AMENDMENT No. 10) LAW, 5736—1976* Amendment of 1. In section 1 of the Reserve Service (Compensation) Law, (Consol• section 1. idated Version) 5719—1959 !) (hereinafter referred to as "the principal Law") — (1) in subsection (a), in the definition of "income", para• graphs (2) and (3) are hereby repealed and the closing passage "subject to the maximum" shall be deleted. (2) subsection (b) is hereby repealed, and the mark "(a)" shall be deleted. Amendment of 2. In section 3 (f) of the principal Law, paragraph (2) shall be replaced section 3. by the following paragraph: "(2) he was undergoing vocational training, or vocational re• habilitation, approved by the Minister of Labour by order, and the requirements as to payment to the Equalisation Fund were ful• filled in his respect, provided he was not at that time an employee, a self-employed person or a student;". Amendment of 3. In section 13 of the principal Law, subsection (b) shall be replaced section 13. by the following subsection: "(b) Where an employee, other than a monthly employee, in the quarter preceding his reserve service, worked for less than 75 con- Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and published in Sefer Ha-Chukkim No. 803 of the 1st Nisan, 5736 (1st April, 1976), p. 135; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1229 of 5736, p. 176. Sefer Ha-Chukkim of 5719, p. 306 — LSI vol. XIII, p. 350; Sefer Ha-Chukkim of 5720, p. 96 — LSI vol. XIV, p. 98; Sefer Ha-Chukkim of 5723, p. 113 — LSI vol. XVII, p. 138; Sefer Ha-Chukkim of 5726, pp. 60 and 74 — LSI vol. XX, pp. 53 and 67; Sefer Ha-Chukkim of 5727, p. 98 — LSI vol. XXI, p. 94; Sefer Ha-Chukkim of 5730, p. 60 — LSI vol. XXIV, p. 55 ; Sefer Ha-Chukkim of 5733, p. 110—LSIvol XXVII, p. 107; Sefer Ha-Chukkim of 5734, p. 104 — LSI vol. XXVIII, p. 108 ; Sefer Ha-Chukkim of 5735, p. 194 — LSI vol. XXIX, p. 258. 132 secutive days for the same employer or at the same place of employ• ment, the compensation shall be paid, to him by the Equalisation Fund. The leave fund through which he is paid a leave equivalent under the Annual Leave Law, 5711—19511X shall furnish the Equalisation Fund, at its request, with the particulars relating to the pay of the employee for the period in respect of which the compensation is paid.". 4. The following section shall be inserted after section 13 of the Addition of principal Law: section 13 A. "Compensation 13A. A person who begins to serve on reserve service in the case of within a period prescribed by regulations after ter• additional reserve mination of earlier reserve service for which he received service. compensation under this Law shall for the purposes of entitlement to and calculation of compensation for the period of the additional service be deemed to continue the earlier service unless the calculation of compensa• tion without reference to the earlier service is to his advantage.". 5. In section 25 (c) of the principal Law, the mark "(b)" shall be Amendment of section 25. inserted after the word "subsections". 6. In section 25A of the principal Law, the words "as well as any Amendment of contribution debt due from him under the Insurance Law" shall be section 25 A. added at the end of subsection (a). !.. . The following section shall be inserted after section 25A of the Addition of principal Law: section 25B. "Grants. 25B. (a) The Equalisation Fund may, after consul• tation with the Board and with the approval of the Minister of Labour, make grants — (1) to adolescent employees up to the age of 18 years who are absent from work in con• sequence of participation in premilitary ed• ucation, all in accordance with rules pre- cribed by regulations with the approval of the Labour Affairs Committee of the Knes• set; (2) for the development of welfare ser• vices for reservists and their families, in• cluding the conduct of research and experi• ments in this connection. 1) Sefer Ha-Chukkim of 5711, p. 234; LSI vol. V, p. 155. 133 The aggregate amount of grants for any one year shall not exceed an amount equal to 0.25 per cent of the collection estimate of the Equalisation Fund for that year. (b) The Minister of Labour may in consulta• tion with the Minister of Finance and with the ap• proval of the Labour Affairs Committee of the Knesset, increase the rate specified in subsection (a) up to 0.5 per cent of the year's collection estimate of the Equalisa• tion Fund.". Amendment of 8. In section 26 of the principal Law, the closing passage, beginning section 26. with the word "however", shall be deleted. Amendment of 9. In section 29 (b) of the principal Law, the words "under section section 29. 25 (a)" shall be deleted. Addition of 10. The following section shall be inserted after section 36B of the section 36C. principal Law: "Prescribing 36C. The Minister of Justice may, in consultation with of times. the Minister of Labour, make regulations as to the times for filing actions and appeals in the Labour Court for the purposes of this Law.". Transitional 11. The obligation of a kibbutz or moshav shitufi to make payments to provisions. the Equalisation Fund in respect of its members under the principal Law, and the right of its members to compensation, shall have effect from the 11th Tammuz, 5734 (1st July, 1974). YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State (No. 52) COLLECTIVE AGREEMENTS (AMENDMENT No. 2) LAW, 5736—1976* Addition of 1• In the Collective Agreements Law, 5717—19571) (hereinafter re• sections 33A ferred to as "the principal Law"), the following sections shall be inserted to33G• after section 33: * Passed by the Knesset on the 28th Adar Bet, 5736 (30th March, 1976) and pub• lished in Sefer Ha-Chukkim No. 804 of the 8th Nisan, 5736 (8th April, 1976), p. 138; the Bill and an Explanatory Note were published in Hatza'ot Chok No.l 194 of 5735, p. 391. 1) Sefer Ha-Chukkim of 5717, p. 63 — LSI vol. XI, p. 58; Sefer Ha-Chukkim of 5735, p. 223 — LSI vol. XXIX, p. 295. 134 "Supervisory 33A. For the purposes of every general collective committee. agreement in respect of which an extension order has been made, the Minister of Labour may appoint a super• visory committee of three members, viz. — (1) a representative of the Minister of Labour who shall be the chairman; (2) a member recommended by the em• ployees' organisation which has signed the extended collective agreement; (3) a member recommended by the em• ployers' organisation which has signed the said agreement. Record and 33B. A supervisory committee shall keep a record of publication. the undertakings to which the extension order applies and shall publish a list thereof in the manner prescribed by the Minister of Labour. Application 33C. (a) A person empowered by the Minister of of extension Labour to be an inspector may request information orders to undertaking from any undertaking in order to ascertain whether and supervision an extension order applies thereto, and if so, whether of imple• the provisions of the order are complied with at the mentation thereof. undertaking; and he also may for this purpose, after giving advance notice, enter any undertaking, examine the owners, managers and employees thereof and in• spect the books and documents of the undertaking re• lating to the employees therein. (b) An inspector shall not disclose anything that comes to his knowledge by virtue of his functions under subsection (a), save in the discharge of a duty imposed on him by law. Power of 33D. The Regional Court, within the meaning of the court. Labour Courts Law, 5729—19691) (hereinafter referred to as "the court"), shall have exclusive power to decide whether an extension order applies to any undertaking and to adjudicate any action by an employee, employer or inspector in any matter arising out of the provisions of sections 33B and 33C. Provisions 33E. Where a collective agreement in respect of which as to pro• an extension order has been made prescribes proceed• ceedings for the ings for the settlement of disputes, the Minister of settlement of Labour may, with regard to all or part of the extended disputes. i) Sefer Ha-Chukkim of 5729, p. 60 — LSI vol. XXIII, p. 76. • provisions, prescribe that in respect of the undertakings . to which the order applies — (1) the supervisory committee shall be the body for the settlement of disputes as afore said instead of a body prescribed by the collective agreement and that different pro ceedings from those prescribed by the col lective agreement shall apply; (2) any right or obligation of an employee or employer which according to an extended provision is conditional upon the consent of an employees' organisation or employers' organisation shall be conditional upon the consent of the employer or the employees' committee at the place of employment, as the case may be, or, if there is no employees' committee at the place of employment, upon the mutual consent of the employee and the employer. Powers of 33F. The powers of a supervisory committee as to the supervisory settlement of disputes, the procedure before it and the committee. effect of its decisions shall, mutatis mutandis, be the same as those of the body it replaces under section 33E or, if it replaces several such bodies, as those of the one whose decision is the last. Fee to 33G. (a) The Minister of Labour may by regula employers' tions, with the approval of the Labour Affairs Com organisation for organisational mittee of the Knesset, prescribe provisions as to the technical obligation of an employer to whom an extension order ־ work. applies to pay to the employers' organisation which is a party to the extended collective agreement, at the rate and on the conditions prescribed as aforesaid, a fee for professional organisational work. The regulations may apply to particular categories of employers, branches of employment, branches of the economy or geographical areas or to particular employers, except undertakings or employers belonging to an organisation of undertakings or employers designated in the regulations. (b) The court shall have exclusive power to adjudicate disputes arising out of the provisions of subsection (a).". 136 2. (a) In the Collective Agreements (Temporary Provisions) (No. 2) Amendment of Law, 5735—19751). at the end of the Schedule, there shall be added the Collective Agreements words "as extended by clause 21 of the General Collective Agreement (Temporary signed between the said parties on the 12th Adar Alef, 5736 (13th Febru• Provisions) ary, 1976), the identifying number of which as aforesaid is 700/276". (No. 2) Law. (b) This section shall have effect from the 28th Tevet, 5736 (1st January, 1976). 3. The provisions of sections 33A to 33G of the principal Law shall Transitional provision. apply also to extension orders made before the coming into force of this Law. YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State (No. 53) WATER (AMENDMENT No. 6) LAW, 5736—1976* 1. In section 112 of the Water Law, 5715—1959 2) (hereinafter re• Amendment of section 112. ferred to as "the principal Law"), the words "and with the approval of a joint committee of the Economic Committee and Finance Com• mittee of the Knesset" shall be inserted after the words "with the Water Board". 2. In section 118 (a) of the principal Law, the words "and with the Amendment of approval of the Finance Committee of the Knesset" shall be replaced section 118. by the words "and with the approval of a joint committee of the Econo• mic Committee and Finance Committee of the Knesset". 3. In section 124B (a) of the principal Law, the words "and with the Amendment of approval of the Finance Committee of the Knesset" shall be replaced by section 124B. the words "and with the approval of a joint committee of the Economic Committee and Finance Committee of the Knesset". YITZCHAK RABIN AHARON UZAN Prime Minster Minister of Agriculture EFRAYIM KATZIR President of the State Sefer Ha-Chukkim of 5735, p. 245; LSI vol. XXIX, p. 323. Passed by he Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub• lished in Sefer Ha-Chukkim No. 804 of the 8th Nisan, 5736 (8th April, 1976), p. 140; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1229 of 5736, p. 179. 2) Sefer Ha-Chukkim of 5719, p. 160 — LSI vol. XIII, p. 173; Sefer Ha-Chukkim of 5720, p. 10 — LSI vol. XIV, p. 10; Sefer Ha-Chukkim of 5721, pp. 175 and 193 — LSI vol. XV, pp. 193 and 216; Sefer Ha-Chukkim of 5725, p. 191 — LSI vol. XIX, p. 196. 137 (No. 54) MUNICIPALITIES ORDINANCE (AMENDMENT No. 20) LAW, 5736—1976* Replacement of 1. In the Municipalities Ordinance1) (hereinafter referred to as "the section 136. Ordinance"), section 136 shall be replaced by the following section: "Meetings of 136. (a) The meetings of the council and their con• council and procedure vening and procedure shall be in accordance with the thereat. Rules set out in the Second Schedule. (b) The Minister of the Interior may, with the approval of the Home Affairs and Ecology Committee of the Knesset, vary the provisions of the Rules.". Amendment of section 166. 2. In section 166 of the Ordinance — (1) the words "a majority of its members" in subsection (a) shall be replaced by the words "one third of its members"; (2) the following subsection shall be inserted after subsec• tion (a): "(aa) A committee required to be established under any law shall meet at least once in three months. Where a committee does not meet as aforesaid, the mayor shall direct it to be convened and shall prescribe the agenda of the meeting. If the chairman of the committee is not present at the meeting or refuses to preside over it, the oldest member of the committee shall preside over the meeting.". Replacement 3. The Second Schedule to the Ordinance shall be replaced by the of Second Schedule. following Schedule: Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub• lished in Sefer Ha-Chukkim No. 805 of the 9th Nisan, 5736 (9th April, 1976), p. 142; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1208 of 5736, p. 8. Dinei Medinat Yisrael (Nusach Chadash) No. 8, p. 197 — NV vol. I, p. 247; Sefer Ha-Chukkim of 5725, pp. 127, 215 and 263 — LSI vol. XIX, pp. 125, 226 and 283 ; Sefer Ha-Chukkim of 5727, pp. 16, 56 and 74 — LSI vol. XXI, pp. 10, 52 and 75 ; Sefer Ha-Chukkim of 5728, pp. 10 and 53 — LSI vol. XXII, pp. 11 and 51 ; Sefer Ha-Chukkim of 5730, p. 6 — LSI vol. XXIV, p. 7; Sefer Ha-Chukkim of 5731, pp. 36 and 168 — LSI vol. XXV, pp. 28 and 160; Sefer Ha-Chukkim of 5732, p. 112 — LSI vol. XXVI, p. 130; Sefer Ha-Chukkim of 5733, pp. 22, 40, 200 and 248 — LSI vol. XXVII, pp. 19, 35, 217 and 285; Sefer Ha-Chukkim of 5735, pp. 88,216 and 219 — LSI vol. XXIX, pp. 112,286, and 292. 138 "SECOND SCHEDULE (Section 136) Rules for the Meetings of the Council and Procedure Thereat Chapter One: General 1. The council shall hold ordinary meetings and extraordinary meet• Meetings of ings, as specified in these Rules. Either kind of meeting is hereinafter council. referred to as a "meeting". 2. The council shall only meet by invitation. Convening. Chapter Two: Times for Ordinary Meetings 3. The Council shall hold an ordinary meeting at least once a month: Number of Provided that it may decide not to hold a meeting in two months meetings. of the year. 4. (a) Within two months from the day of its election, the council Times for ordinary shall decide upon a fixed time for its meetings. Such time shall be in meetings. the first fifteen days of the calendar month on one of the days from Sunday to Thursday, but it shall not be on the weekly day of rest of a member of the council. The meeting shall not begin before 18.00 hours unless all the members of the council otherwise agree. (b) Until the council decides upon a fixed time for its meetings, the meetings shall take place at 18.00 hours on the first Thursday of every month. (c) If the time for a meeting falls on the eve of a day of rest, a day of rest or the evening after a day of rest of a member of the council, the meeting shall be postponed to the fixed day and hour in the following week. (d) In this section, "day of rest" has the same meaning as in section 18A of the Law and Administration Ordinance, 5708—19481). 5. (a) The Mayor shall postpone a meeting, not more than once Postponement and for not more than one week, if at least one third of the members of ordinary meeting. of the council so request in writing at least five days before the time for the meeting, and he may postpone a meeting with the consent of a majority of the members of the council, all on condition that at least one meeting is held in that calendar month and that the time prescribed under law for an item on the agenda of the meeting does not elapse. l.R. of 5708, Suppl. I, pp. 1 and 12 — LSI vol. I, pp. 7 and 18; Sefer Ha-Chukkim of 5712, p. 10 — LSI vol. VI, p. 7. 139 (b) The provisions of rule 4(a) and (c) as to the days of the week and the hours of the meeting shall also apply to the postponed time. Council not 6. (a) If the council is not called to a meeting at the time prescribed called at prescribed in this chapter, the town clerk shall convene it for a meeting at the time. written request of at least one third of its members setting out the agenda of the meeting and a draft resolution in respect of such agenda, and that meeting shall take place within seven days from the day on which the town clerk receives the request. (b) The provisions of rule 4 (a) and (c) as to the days of the week and the hours of the meeting shall also apply to a meeting called under this section. Chapter Three: Times for Extraordinary Meetings Power of 7. The mayor may convene an extraordinary meeting. mayor. Convening 8. (a) The mayor shall convene an extraordinary meeting for a time upon request. not later than seven days from the day on which a request therefor is submitted to him in writing signed by at least one third of the members of the council and setting out the agenda of the meeting and a draft resolution in respect of such agenda. If the proposed agenda includes the removal from office of a deputy mayor under section 15 of the Local Authorities (Election and Tenure of Head and Deputy Heads) Law, 5735—1975!) (hereinafter referred to as "the Election Law"), the request shall be signed by a majority of the members of the council. (b) The provisions of this rule shall not apply to the removal from office of the mayor or the deputy under section 14 of the Election Law. Ordinary 9. Where the council has decided to hold a meeting at least once meeting in in two weeks, the mayor may, instead of convening an extraordinary lieu of extraordinary meeting under rule 8, include the proposals contained in the request for meeting. convening it in the agenda of the next ordinary meeting as the first items, unless the proposed agenda includes the removal from office of the mayor or one of his deputies. Extraordinary 10. Where the convening of an extraordinary meeting has been re• meeting upon instructions quested and the mayor does not convene the council for a meeting from the within seven days as provided in rule 8 or act as provided in rule 9, Minister the Minister of the Interior shall appoint a person to convene the of the Interior. council for a meeting at the time prescribed by the Minister of the Interior. 1) Sefer Ha-Chukkim of 5735, p. 211 ; LSI vol. XXIX, p. 278. 140 11. The provisions of rule 4(a) and (c) as to the days of the week Day and hour and the hours of the meeting shall also apply to a meeting called under of extraordinary meeting. this chapter. Chapter Four: Calling of Meetings 12. The town clerk shall sign invitations to the meetings of the council Sending of invitations. and shall be responsible for the delivery thereof, but invitations to the meetings of an appointed council or to meetings convened by a person appointed for this purpose by the Minister of the Interior under section 10 shall be signed by a person appointed for this purpose by the Minister of the Interior, and such last-mentioned person shall be responsible for the delivery thereof. 13. The invitations shall specify — Contents of invitation. (1) whether the meeting is an ordinary or an extraordinary one; (2) the day, hour and place of the meeting; (3) the items of the agenda in the order in which they are to be considered; (4) in the case of a meeting at which a budget, compulsory payments or a byelaw is or are to be considered — drafts of the proposals with explanatory notes; (5) in the case of a meeting convened upon the request of at least one third of the members of the council — a draft pro• posal in respect of the agenda. 14. (a) An invitation to a meeting shall be delivered to each member Delivery of of the council at least thirty-six hours before the commencement of the invitations. meeting, but with the consent of all the members of the council a meeting may be convened at shorter notice. (b) An invitation to a meeting at which a budget, compulsory payments or a byelaw is or are to be considered shall be delivered to the members of the council at least ten days before the day of the meeting unless all the members of the council have consented to shorter notice. (c) Delivery shall be lawful if the invitation is delivered to the member of the council personally or is delivered at his house to an adult member of his family living with him or is delivered in such manner as he has asked the town clerk in writing. If it cannot be delivered as aforesaid with reasonable diligence, delivery shall be lawful if the in• vitation is placed in the letter-box at the address of the member of the council. 15. Invitations to meetings shall be delivered at the addresses of the Address for delivery of members of the council published in the candidates' lists or, in the case invitation. of an appointed council, at the last address registered in the Population Register, or, if the member of the council has indicated to the town clerk 1.41 in writing another address in the area of the local authority, at that address. Defect in 16. (a) Where a member of the council has attended a meeting or has delivery of agreed to receive the invitation thereto otherwise than at an address invitation. as provided in rule 15, the plea that he was not lawfully invited shall not be heard. (b) The plea that a decision was not validly adopted by reason that a member of the council had not been lawfully invited to the meeting shall only be heard from that member. Chapter Five: Publicity of Proceedings Publicity of 17. The meetings of the council shall be in public: Provided that the proceedings whole or part of a meeting shall be in camera if — and restrictions thereon. (1) the mayor so directs after it appears to him that reasons of State security necessitate his doing so; or (2) the mayor so directs with the prior consent of three quarters of the members of the council; or (3) three quarters of the members of the council present at the meeting so decide. Prohibition 18. A person shall not disclose anything of the proceedings of a meeting of disclosure. held in camera to a person not a member of the council unless it is necessary for the purpose of implementing a decision of the council. Place of 19. The meetings shall take place at the offices of the council unless meetings. the council otherwise decides by a two-thirds majority of its members in respect of a particular meeting. Chapter Six: Quorum Quorum. 20. A quorum at a meeting shall be a majority of the members of the council. Absence of 21. (a) Where there is no quorum at a meeting of the council, the quorum. meeting shall be adjourned for three days. If there is no quorum at the new date either, the meeting shall be postponed for two more days. At the second postponed date, one third of the members of the council shall be a quorum in respect of every item included in the agenda of the meeting. (b) The provisions of rule 4 (a) and (c) as to the days of the week and the hours of the meeting shall also apply to a meeting postponed under this section. 142 22. Where a meeting has been properly opened under rule 20 or 21, Decrease of number of its continuation shall be lawful so long as one third of the members participants. of the council participate. Chapter Seven: Agenda 23. (a) The mayor shall prescribe the agenda of the meeting. Prescribing agenda. (b) Where the council prescribes the agenda of a meeting by prior decision, the agenda shall be as so prescribed. (c) At a meeting convened upon the request of at least one third of the members of the council, the agenda shall be as specified in the request. (d) The first items to be dealt with upon the opening of an ordi• nary meeting shall be applications for an amendment of the minutes under rule 54, answers to questions under Chapter Nine and proposals under rule 29. 24. Subject to the provision of rule 23 (d), the items of the agenda Order of shall be dealt with in the order in which they appear therein. priority. 25. An item concerning a matter not within the jurisdiction of a muni• Items of cipality or not defined in detail shall not be included in the agenda. agenda. 26. (a) A member of the council may submit proposals for the agenda Additional proposals by of an ordinary meeting not later than forty-eight hours before the time members of thereof. council. (b) Four proposals for the agenda may be considered at each meeting. (c) The proposals shall be set down for consideration and con• sidered having regard to the size of the party groups on the council: Provided that precedence shall be given to a proposal submitted by a member of the council belonging to a party group not represented on the management committee. Subject as aforesaid, proposals shall' be set down for consideration and considered in the order of their submission. 27. A proposal for the agenda of a meeting, as referred to in rule 26, Specifying proposals for shall be specified in the invitation to that meeting under rule 13 or in an agenda. annex to that invitation. 28. A proposal to change the order in which the items of the agenda Change in are to be considered shall only be heard if submitted to the town clerk order of priority. i n writing not later than six hours before the opening of the meeting. 143 Consideration 29. (a) A proposal for the agenda shall be presented to the council of proposals by the member who submitted it or by a member whom that member has for the agenda and for asked to present it. Where there is opposition to the proposal, the pro• changes in the ponent and one opponent shall each be heard for not more than ten order of minutes, and the proposal shall only be adopted if supported by a majo• priority. rity of the members of the council present at the meeting. (b) The provisions of subrule (a) shall also apply to a proposal to change the order in which the items of the agenda are to be considered, except that the time allotted to each speaker shall not exceed five minutes. Disagreement 30. A member of the council present at a meeting who alleges that a as to agenda. particular item has improperly been included or not been included in the agenda may request that the council decide the matter. Absence of 31. Where a member of the council, having submitted a proposal for proponent. the agenda, does not expect to be present at the meeting in question, he may ask that consideration of the proposal be adjourned to the following meeting or may ask another member to state the reasons for the proposal in his stead. Removal of 32. A member who has submitted a proposal for the agenda may with• proposal from draw it at any time by written notice to the town clerk before the meeting agenda. of the council or by oral notice at the meeting. If another member re• quests that the proposal be included in the agenda, it shall be presented for consideration as if that member had submitted it. Adjournment 33. Subject to the provisions of rule 51, where the consideration of of consideration any item of the agenda of an ordinary meeting is not completed at that ofitems. meeting, such item shall be transferred to the agenda of the following ordinary meeting. Chapter Eight: Conduct of Meeting Chairman. 34. (a) The mayor shall be the chairman at the meetings of the council. (b) In the absence of the mayor, his place shall be taken by one of his deputies. If both the mayor and all his deputies are absent or refuse to preside, the oldest council member present shall open the meet• ing and the members of the council shall elect a chairman of the meeting from among themselves. Functions •*5. The chairman shall open the meeting, conduct deliberations, sum of chairman. up the results of the deliberations and voting on every matter and close the meeting. 144 36. A chairman who seeks to close the meeting in contravention of Improper closure of these Rules shall be deemed to have refused to conduct the meeting. meeting. 37. After the opening remarks to any item, the chairman shall give Permission the floor to the participants in the deliberations in the order in which to speak, they ask therefor : Provided that where not all the party groups of the council are represented on the management committee, the chairman shall first give the floor to a representative of the largest party group not so represented. T m 38. A member of the council, other than the chairman of the meeting |í| ®ed and the chairman of a committee reporting on its behalf, shall speak no longer than ten minutes to any one item: Provided that a speaker may have up to ten minutes ceded to him by another member and that the council may decide to allot more time to the participants in the debate on a particular item. 39. The chairman of a meeting may — Powers of chairman. (1) interrupt a member who speaks longer than he is per• mitted under these Rules or does not keep to the subject; (2) warn a member of the council who in his opinion dis• turbs the orderly progress of the meeting; where a member disregards three warnings at one meeting, the chairman may, with the consent of at least three quarters of the council members present, request him to leave the meeting, and if he does not leave his vote shall not be counted when a vote is taken; (3) direct the exclusion of the public when a direction has been issued that the deliberations shall be continued in camera; ־direct the exclusion of a member of the public who dis (4) turbs the progress of the meeting after being warned. Chaper Nine: Questions and Personal Statements 40. (a) A member of the council may, not later than forty-eight hours Questions and before the commencement of an ordinary meeting, submit to the mayor a answers• written question, concisely worded and wholly in interrogative form, concerning a factual matter within the scope of the municipality's functions. The mayor shall answer the question briefly in writing and shall read out the answer at the said meeting: Provided that he may postpone the answer till the following ordinary meeting. The written question and answer shall be distributed to the members of the council. 145 (b) Where the mayor does not answer a question at either of the. two ordinary meetings following the submission thereof, the subject of the question shall, at the request of the questioner, be placed on the agenda of the next meeting as the first item. (c) Not more than two questions may be submitted by the same member before any ordinary meeting. Supplementary 41. The questioner may, after hearing the answer, ask a brief supple• question. mentary question orally, provided that it arises out of the contents of the answer, and the mayor or another person on his behalf may give a brief answer orally. A question and a supplementary question shall not be debated by the council. Personal 42. (a) A member of the council who wishes to make a personal state• statement. ment shall first communicate to the chairman the contents of the statement in writing. (b) Permission to make a personal statement shall only be given for the purpose of correcting a misconception expressed in or in connec• tion with an utterance of the member wishing to make the statement or of refuting an accusation made against him at a meeting of the council. (c) A personal statement shall not last longer than five minutes and shall only be heard at the end of the meeting: Provided that the chairman of the meeting may permit a member of the council to elucidate his own remarks, or to refute a charge, even in the course of the meeting. Statement 43. A statement which a member of the council is duty-bound to make under law. under any law may be made at any time that the duty exists. Chapter Ten: Proposals, Voting and Decisions Submission of 44. A person who submits any proposal for a vote may state the reasons proposal and therefor prior to the vote, speaking not longer than five minutes. statement of reasons. Voting. 45. (a) Where there is not more than one proposal in a particular matter, it shall be put to an ordinary (aye-or-no) vote. (b) Where there are several proposals, they shall be put to an ordinary vote successively, the most far reaching one always taking pre• cedence, and subject thereto, in the order of their submission. (c) Where there are only two proposals, the chairman may put them to the vote together as alternatives. Method of 46. Voting shall be by a show of hands. voting. 146 47. Decisions of the council for which no special majority is required Decisions by under any law shall be adopted by a majority of the votes of those voting; majority in the event of an equality of votes, the proposal shall be considered vote. rejected. 48. (a) At the voting, the votes in favour and those against shall be Counting counted; where there are abstentions, the votes of those abstaining shall of votes. also be counted if one of them so requests. (b) Where the results of the vote are not clear to the chairman or are challenged by a member of the council, the chairman shall appoint tellers from among the members of the council and instruct them to count the votes at a repeat vote. 49. Subject to section 13 of the Election Law, a proposal to annul a Reconsideration decision or to reconsider a rejected decision may not be submitted and of decision. put to the vote until three months have elapsed since the time of the decision or rejection, as the case may be, except at the request of the mayor or at least forty per cent of the members of the council, signed by him or them. 50. A meeting of the council shall not be closed before the expiration Duration and closure of of three hours from its opening unless the deliberations and voting on meeting. all the items of the agenda have been completed or all the members of the council present at the time consent to the closure. A meeting of the council shall not last more than four hours, save with the consent of three quarters of the members present. 51. Where the deliberations have not been completed in respect of all Continuation the items of the agenda, the chairman may, with.the consent of a majority of meeting at other of the members present, invite the members to a continuation of the time. meeting on the following weekday, not being the eve of a day of rest. The members not present at the time of the decision shall be invited by written notice delivered as provided in rule 15. Chapter Eleven: Minutes 52. (a) Minutes shall be taken at every meeting. The town clerk Minutes and shall be responsible for the proper keeping thereof. thereof3 (b) The minutes shall set out — (1) the time and place of the meeting; (2) the names of the council members present at the meet• ing, indicating which of them were present at the opening; ; 147 (3) questions and answers; (4) the agenda and any change therein; (5) the names of those participating in the debate on each item; (6) the proposals and the reasons therefor; (7) the decisions and the results of the voting and, at the request of a member of the council, the names of those voting and how they voted; (8) statements. (c) The council may prescribe that in addition to the matters mentioned in subsection (b) complete minutes shall be taken of every• thing said at meetings of the council or of a particular meeting. Certification 53. The chairman of the meeting and the town clerk or a person em• of minutes. powered by him shall certify the minutes by their signatures. A copy of the minutes shall be delivered to each member of the council not later than forty-eight hours before the time of the following ordinary meeting unless this is not possible for reasons beyond the control of the chairman and the town clerk, in which case the copies shall be delivered as soon as possible. Application 54. (a) A member of the council may submit to the town clerk a for correction of minutes. written application for a correction of the minutes. (b) If no application as aforesaid is submitted until the opening of the ordinary meeting following the delivery of copies of the minutes, the minutes shall be regarded as approved. Consideration 55. Where a member of the council has submitted a proposal to correct of proposal to correct the minutes, the town clerk shall read it out at the meeting immediately minutes. after the opening thereof, and in the absence of agreement to the proposal the matter shall be decided by vote. . Correction 56. A correction of the minutes of a closed meeting shall be considered of minutes at a closed meeting. of closed meeting. Preservation 57. The minutes of the meetings of the council shall be preserved by of minutes. the town clerk at the council offices. Inspection 58. (a) The minutes of an open meeting shall be open for inspection, of minutes. during the ordinary working hours of the municipality, by every owner or occupier of property in the municipal area, every person whose per• manent place of residence, according to the Population Register, is in the municipal area, and every other interested person. 148 (b) The minutes of a closed meeting shall not be open for inspec tion: Provided that the council may permit the inspection, distribution or copying thereof, with or without restrictions. (c) The Minister of the Interior or a person appointed by him in that behalf may inspect the minutes of every meeting of the council. Chapter Twelve: Special Debates 59. (a) The mayor shall prescribe the time for a special debate on Reports, budget pro the annual report submitted by the treasurer, the report of the State posals and Comptroller and the report of the municipal comptroller, which shall imposition be not later than one month after submission of the report in question. of rates. (b) The mayor shall prescribe the time for a special debate on the budget proposal and the imposition of rates, which shall be held at an •extraordinary meeting. (c) The mayor shall at least once a year submit to the council a report on the position of every body corporate in which the municipality participates, and at the request of a member of the council a debate shall be held on such a report. (d) The provisions of rule 4(a) and (c) as to days of the week shall apply also to debates under this rule. a) At meetings on the special matters specified in rule 59, the Meetings on) .60׳ special •chairman or such person as he may direct shall open the proceedings matters. with explanatory remarks and, subject to the provisions of rule 50, the council shall itself prescribe the duration of the debate: Provided that one third of the members of the council may request that the duration of the debate on the budget proposal shall not be less than six hours. (b) At the first meeting on a special matter as aforesaid, no other matter shall be considered. In these Rules, "town clerk" includes a person discharging the Definition of .61׳ functions of a town clerk in an acting capacity. "town clerk". YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State 149 (No. 55) LOCAL AUTHORITIES (ELECTION AND TENURE OF HEAD AND DEPUTY HEADS) (AMENDMENT) LAW, 5736—1976* Amendment of 1. In section 9 of the Local Authorities (Election and Tenure of Head section 9. and Deputy Heads) Law, 5735—1975') — (1) in subsection (a), the expression "50 per cent" shall be replaced by the expression "40 per cent"; (2) in subsection (b), the opening passage, ending with the words "each obtain 50 per cent of such votes", shall be re• placed by the words "Where no candidate obtains 40 per cent of the valid votes or where two candidates obtain an equal number of votes, being 40 per cent or more of the valid votes"; (3) in subsection (c), the expression "50 per cent" shall wherever occurring be replaced by the expression "40 per cent". YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State (No. 56) BASIC LAW: THE ARMY•• Defence Army of Israel. 1. The Defence Army of Israel is the army of the State. Subordination to civil authority. 2. (a) The Army is subject to the authority of the Government. (b) The Minister in charge of the Army on behalf of the Govern• ment is the Minister of Defence. Chief of the 3. (a) The supreme command level in the Army is the Chief of the General Staff. General Staff. Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub• lished in Sefer Ha-Chukkim No; 805 of the 9th Nisan, 5736 (9th April, 1976), p. 151; the Bill and an Explanatory Note were published in HatztCot Chok No. 1208 of 5736, p. 16. Sefer Ha-Chukkim of 5735, p. 211; LSI vol. XXIX, p. 278. Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub• lished in Sefer Ha-Chukkim No. 806 of the 9th Nisan, 5736 (9th April, 1976), p. 154; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1197 of 5735, p. 418. 150 (b) The Chief of the General Staff is subject to the authority of the Government and subordinate to the Minister of Defence. (c) The Chief of the General Staff shall be appointed by the Government upon the recommendation of the Minister of Defence. 4. The duty of serving in the Army and recruitment for the Army Duty to shall be as prescribed by or by virtue of Law. recruitment. 5. The power to issue instructions and orders binding in the Army Instructions shall be prescribed by or by virtue of Law. fnfhe A?my. 6. No armed force other than the Defence Army of Israel shall be Other armed forces established or maintained except under Law. YITZCHAK RABIN Prime Minister EFRAYIM KATZIR President of the State (No. 57) FREE PORT ZONES (AMENDMENT) LAW, 5736—1976* 1. In section 1 of the Free Port Zones Law, 5729—19691), in the Amendment of / section 1 definition of "indirect taxes", the expression "value added tax" shall be inserted after the expression "customs duty". 2. This Law shall come into force on the date of the coming into Commencement, force of the Value Added Tax Law, 5736—1975 2), in respect of every class of dealers designated by order under section 147 (a) of the said Law. YITZCHAK RABIN YEHOSHUA RABINOVITZ GAD YAACOBI Prime Minister Minister of Finance Minister of Transport EFRAYIM KATZIR President of the State * Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub• lished in Sefer Ha-Chukkim No. 806 of the 9th Nisan, 5736 (9th April, 1976), p. 154; the Bill and an Explanatory Note were published in Hatzd'ot Chok No. 1233 of 5736, p. 212. 1) Sefer Ha-Chukkim of 5129, p. 228; £5/vol. XXIII, p. 247. 2) Sefer Ha-Chukkim of 5736, p. 52; supra.p. 46. 151 (No. 58) SUCCESSION (AMENDMENT No. 4) LAW, 5736—1976* Amendment of \. In section 11 (a) of the Succession Law, 5725—19651) — ׳ .section 11 (1) in the opening passage, after the words "takes the chat tels", there shall be inserted the words "including á passenger car"; (2) paragraphs (4) and (5) shall be replaced by the following paragraph: "(4) where there are no other heirs as aforesaid — the . . whole.". Addition of 2. The following section shall be inserted after section 85 of the section85A. principal Law: ó'nn neT* ^oneys °^tne estate not required for day-to-day o moneys. management purposes shall be held or invested by the administrator as may be necessary for the preservation of the capital and the assurance of the income. The Min• ister of Justice may by regulations prescribe modes of investing estate moneys which shall be obligatory on the administrator.". Amendment of 3. Tn section 115 of the principal Law — section 115. (1) subsection (c) shall be re-marked as subsection (d) and the following subsection shall be inserted before it: "(c) Where the deceased rented a dwelling for a period exceeding twenty-five years and lived in it immediately before his death, and the lease did not terminate upon his death, then, notwithstanding anything provided in ..the contract of lease, the provisions of subsections (a) and (b) shall apply also to such dwelling."; (2) in subsection (d), the words "the deceased rented and lived in a dwelling" shall be replaced by the words "the deceased rented a dwelling for a shorter period and lived in ׳ it". * Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub lished in Sefer Ha-Chukkim No. 806 of the 9th Nisan, 5736 (9th April, 1976), p. 155; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1133 of 5734, p. 248. LSI vol. XIX, p. 58; Sefer Ha-Chukkim —63״ .Sefer Ha-Chukkim of 5725, p (1 of 5729, p. 249 — LSI vol. XXIII, p. 276; Sefer Ha-Chukkim of 5733, p. 269 — LSI vol. XXVII, p. 316; Sefer Ha-Chukkim of 5736, p. 98 — supra,p. 102. 152 .4. In section 122 of the principal Law, at the end of subsection (b), Amendment of there shall be added the words "in an action by or against one of the section 122. heirs, the approval may be given by the court hearing the action". 5. Section 140 of the principal Law shall be replaced by the following Replacement of section 140. section: "Form of will. !40. (a) A will is valid in form if it is valid according to Israeli law or the law of the place where it was made or the law of the testator's domicile, ordinary place of residence or nationality at the time of making the will or the time of his death and, in so far as the will relates to immovable property, also according to the law of the place where such property is situated. (b) For the purposes of the application of foreign law under this section, the capacity required for the testator or the witnesses to the will shall be regarded as a matter of form.". YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State (No. 59) INCOME TAX ORDINANCE (AMENDMENT No. 24) LAW, 5736—1976* 1. In section 9 of the Income Tax Ordinance*), (hereinafter referred to Amendment of as "the Ordinance"), the following paragraph shall be inserted after para- sectlon 9- graph (15): "Insurance (15A) An amount received by a non-resident under a fn rate of13"86 policy of insurance against a change in the rate of ex- exchange, change of the pound, such insurance relating to the prin• cipal of a loan made by him in foreign currency lawfully held by him, or in pounds derived from the lawful con• version of foreign currency, and, according to its terms, * Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub• lished in Sefer Ha-Chukkim No. 806 of the 9th Nisan, 5736 (9th April, 1976) p. 156; the Bill and an Explanatroy Note were published in Hatza'ot C/wk No. 1228 of 5736, p 168. 1) Dirtei Medinat Yisrael {Nusach Chadash) No. 6, p. 120 — NV vol. I, p. 145; Sefer Ha-Chukkim of 5735, p. 168— LSIvol XXIX, p. 215; Sefer Ha-Chukkim of 5736, p. 84 — supra, p. 90. 153 repayable in pounds without linkage differentials, pro• vided that the exempted amount shall not exceed the amount of the differential resulting from the change in the rate of exchange of the pound.". Amendment of 2. In section 120A of the Ordinance — section 120A. (1) in the definition of "social concessions", the words "the amount specified in section 32 (9) (b)" shall be inserted after the words "in section 9A(c)"; (2) the following definition shall be added at the end: ""income ceilings" means the amounts of income for the purpose of determining the rates of tax under sec• tion 121". Amendment of 3. In section 120B (4) of the Ordinance, the words "and social con- section 120B. cessions" shall be added at the end. Amendment of 4. In section 121 (a) of the Ordinance, the word "chargeable" shall be section 121. inserted before the word "income" in the opening passage. Amendment of 5. In section 146 of the Ordinance, subsection (h) shall be replaced section 146. by the following subsection: "(h) The Minister of Justice may make regulations as to — (1) procedure for the summoning of committees under this section; (2) the procedure of the committees; (3) the fees payable in respect of proceedings before the committees; (4) the remuneration of the members of the committees.". Amendment of 6. In section 158A(c) of the Ordinance, the words "in section 131" section 158A. shall be replaced by the expression "in section 131, 161, 166, 171 or 181B". Amendment of 7. In section 191 B (a) of the Ordinance, the words "10 per cent of the section 191B. amount of the income" shall be replaced by the words "10 per cent of the amount of the chargeable income". Amendment of 8. In section 245 (a) of the Ordinance, the words "or by virtue of section 245. powers defined by Law" shall be added at the end. 154 9. In section 85 of the Income Tax Ordinance (Amendment No. 22) Amendment of Law, 5735—19751)— Income Tax Ordinance (1) at the end of subsection (i) there shall be added the words (Amendment No. 22) Law. "but the repeal of section 40 (a) as in force before its replace• ment by virtue of this Law shall apply from the tax year 1975"; (2) the following subsection shall be inserted after subsec• tion (o): "(ol) Section 67 shall apply in respect of assessments for the tax year 1975 and onwards."; (3) in subsection (v), the closing passage, beginning with the word "Provided", shall be deleted; (4) subsection (w) shall be re-marked as subsection (x) and the following subsection shall be inserted before it: "(w) For the purposes of the provisions of this Law re• lating to the keeping of account-books, a person first required to keep account-books in the tax year 1975 who begins to keep them at any date in that year shall be deemed to have kept books for the tax year 1975, provided that if at the time of filing the return for that year he is required to keep books he continues to keep 10. (a) Section 1 shall have effect from the 22nd Tammuz, 5735 (1st Commencement July, 1975). and application. (b) Sections 2 to 4 and 6 to 8 shall have effect from the tax year 1975 onwards. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State 1) . Sefer Ha-Chukkim of 5735, p. 168; LSI vol. XXIX, p. 215. 155 (No. 60) DEFENCE STAMP (AMENDMENT AND EXTENSION OF PERIOD OF OPERATION) (AMENDMENT No. 12) LAW, ' 5736—1976* Amendment of 1. In the Defence Stamp (Amendment and Extension of Period of Operation) Law, 5718—19581), the words "29th Adar Bet, 5736 (31st '29׳10Can°dni March, 1976)" shall wherever appearing in section 6,9,10 or 12 thereof be replaced by the words "12th Nisan, 5737 (31st March, 1977)". YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State •׳:־• (No. 61) INTER-AMERICAN DEVELOPMENT BANK CONVENTION LAW, 5736—1976«) Definition. 1. In this Law, "Bank Convention"-means the Agreement Establishing the Inter-American Development Bank (hereinafter referred to as "the Bank"). Payments 2. Upon the Bank Convention being signed in the name of the State, to Bank. the Minister of Finance shall be authorised — (1) to pay to the Bank in the name of the State the sums the State is required to pay under the Bank Convention; (2) to issue on behalf of the State, in accordance with the provisions of the Bank Convention, non-negotiable, non- interest-bearing promissory notes payable upon demand at • •׳ '־ .face-value * Passed by the Knesset on the 29th Adar Bet, 5736 (9th April, 1976) and published in Sefer Ha-Chukkim No. 806 of the 9th Nisan, 5736 (9th April, 1976), p. 157; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1236 of 5736, p. 222. 1) Sefer Ha-Chukkim of 5718, p. 131 — LSI vol. XII, p. 152; Sefer Ha-Chukkim of 5735, p. 119 —LSI vol. XXIX, p. 153. *•) Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub lished in Sefer Ha-Chukkim No. 806 of the 9th Nisan, 5736 (9th April, 1976), p. 158; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1240 of 5736, p. 241. 156 3. The Bank of Israel shall represent the State for the purposes of Representation. membership of the Bank. 4. The Government may, with the approval of the Finance Committee Variations in of the Knesset, agree to variations in the Bank Convention. Bank Convention. 5. The Minister of Finance is charged with the implementation of this Implementation Law and may make regulations as to any matter relating to the imple and mentation of the provisions of the Bank Convention and to the fulfilment regulations. of the obligations of the State thereunder, and in particular, to the status, immunities and privileges of the Bank, of its governors and directors and their alternates and of its officials and employees. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 62) DEFENCE LOAN (APPROVED UNDERTAKINGS) (AMENDMENT No. 2) LAW, 5736—1976* 1. In section 1 of the Defence Loan (Approved Undertakings) Law, Amendment of 5734—19741) (hereinafter referred to as "the principal Law"), paragraph section 1. (2) of the definition of "privileged income" shall be replaced by the following paragraph : "(2) income to which sections 5 and 6 (a) and (b) of the Israel Corporation Ltd. Law, 5729—19692), or sections 6 and 7 (a) and (b) of the Encouragement of Capital Investments (Large-Capital Com panies) Law, 5734—1973 3), apply, except dividend payable to a non-resident;". 2. The following section shall be inserted after section 9 of the Addition of principal Law: section 9A. ,Option 9A. A person liable to a loan under section 2 (2) may ment'of eaC^ ^eaf' mstea(^ °^ tne 'oan> a tax °^ ^ Per cent> tax. which in the case of a body of persons shall be regarded as company tax, provided that he notifies his intention * Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub lished in Sefer Ha-Chukkim No. 806 of the 9th Nisan, 5736 (9th April, 1976), p. 158; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1228 of 5736, p. 167. 1) Sefer Ha-Chukkim of 5734, p. 67 — LSI vol. XXVIII, p. 64; Sefer Ha-Chukkim .p. 165— LSI vol. XXIX, p. 211,5735־/o 2) Sefer Ha-Chukkim of 5729, p. 149; LSI vol. XXIII, p. 162. 3) Sefer Ha-Chukkim of 5734, p. 18; LSI vol. XXVIII, p. 16. 157 of doing so not later than the date for the filing of the return for that year.". Amendment of 3. In section 10 of the principal law, the words "or, in the case of section 10. a person wj!0 opteci for payment 0f a tax, to the tax" shall be inserted after the words "to the loan". Application. 4. This Law shall apply from the tax year 1975 onwards. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 63) ENCOURAGEMENT OF SAVING, INCOME TAX REDUCTIONS AND GUARANTEE OF LOANS (AMENDMENT No. 4) LAW, 5736—1976* Amendment of 1• In section 5(a) of the Encouragement of Saving, Income-Tax section 5. Reductions and Guarantee of Loans Law, 5716—1956l) — (1) in paragraph (3), the words "other than the tax at the rate of 35 per cent which a company is bound to deduct under section 31 (7) of the Ordinance" shall be replaced by the words "other than the tax which a body of persons is bound to deduct under section 161 (a) of the Ordinance"; (2) in paragraph (4), the words "after the depositee has deducted from such interest, at the time of payment, tax at the rate of 35 per cent; a deduction as aforesaid shall be treated as a deduction under section 31 (7) of the Ordinance" shall be replaced by the words "after the depositee has deducted from such interest, at the time of payment, tax at the rate prescribed for interest on debentures by section 161 (a) of the Ordinance; a deduction as aforesaid shall be treated as a deduction under section 161 of the Ordinance". * Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub• lished in Sefer Ha-Chukkim No. 806 of the 9th Nisan, 5736 (9th April, 1976), p. 159; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1228 of 5735, p. 170. 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. XXVIII, p. 51; Sefer Ha-Chukkim of 5735, p. 166 — LSI vol. XXIX, p. 214. 158 2. This Law shall have effect from the 12th Av, 5735 (20th July, 1975). Commencement. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 64) MEDICAL PRACTITIONERS ORDINANCE (AMENDMENT No. 4) LAW, 5736—1976* 1. In the Medical Practitioners Ordinance, 1947l) (hereinafter referred Amendment of to as "the Ordinance"), the following shall be added at the end of sec- sectlon2• tion 2: "endangering illness" means any of the following: (1) a mental illness; (2) an illness likely to endanger the health of the patients of a physician; (3) an illness or disability likely to incapacitate a physician from practising medicine absolutely, temporarily or partly.". 2. Section 5A of the Ordinance shall be replaced by the following Replacement of section 5A. section: "Advisory board 5A. (a) For the purpose of granting licences to on licences to physicians, the Minister of Health shall establish a physicians. board of three (hereinafter referred to as the "Advisory Board"), whose members shall be a physician in the service of the Ministry of Health and two physicians of whom at least one shall be a member of the teaching staff of a medical school of or above the rank of senior lecturer. The Minister of Health shall appoint the two physicians from a list submitted to him by the Israel Medical Association, and if it does not submit a list to him within two months from the day on which it is requested to do so, the Minister of Health shall make such appointments as he thinks fit. Passed by the Knesset on the 29th Adar Bet, 5736 (31st March, 1976) and pub• lished in Sefer Ha-Chukkim No! 806 of the 9th Nisan, 5736 (9th April, 1976), p. 160; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1153of5735,p.75. P.G. of 1947, Suppl. I, p. 322 (English Edition); Sefer Ha-Chukkim of 5727, p. 78 — LSI vol. XXI, p. 97; Sefer Ha-Chukkim of 5731, p. 68 — LSI vol. XXV, p. 63; Sefer Ha-Chukkim of 5732, p. 104 — LSI vol. XXVI, p. 122. 159 (b) The Minister shall appoint the chairman of the Board from among the members thereof. {c) The Minister shall appoint alternates for each member of the Advisory Board in the same man• ner and on the same conditions as the member was appointed. (d) The Minister shall publish in Reshumot no• tice of the appointment of the members of the Board and their alternates.". Replacement of 3. Section 5C of the Ordinance shall be replaced by the following section 5C. section: "Functions of 5C. The Advisory Board shall hear every case until alternates. jts completion in the same composition in which it began to hear it: Provided that an alternate of a member of the Board shall take his place, in accordance with the determination of the chairman of the Board — (1) if the member has resigned or has died or is unable to carry out his functions; (2) upon the request of a member who is unable to carry out his functions tempo• rarily or in respect of a particular applic• ant.". Replacement of 4. Section 5G of the Ordinance shall be replaced by the following section 5G. section: "Medical Board. 5G. (a) For the purpose of examining the mental or physicial fitness of a person applying for a licence to practise medicine or, in the cases envisaged in sections 5H and 51, a person authorised to practise medicine, the Director shall appoint a board of three pyhsicians (hereinafter referred to as a "medical board"). The ap• pointment may be general or for a particular case. Where a question of mental fitness has arisen, the board shall consist of three psychiatrists. (b) For the purposes of examination as afore• said, a medical board shall have power — (1) to summon a person to appear before it and to testify or to produce any thing; (2) to require a witness to testify on oath or affirmation in accordance with the rele• vant provisions of the Civil Procedure Re• gulations, 5723—1963 i) Kovetz Ha-Takkanot of 5763, p. 1869. 160 (3) to apply to the District Court in whose area of jurisdiction it is sitting for an order under section 13 of the Evidence Ordinance (New Version), 5731—197 U); (4) to award travelling and lodging ex penses and a loss-of-working-time allowance to witnesses summoned under this section as if they were witnesses summoned to testify in a court of law. (c) Where a person requested by a medical board to testify or to produce any thing refuses to do so without justification satisfactory to the board, the Dis trict Court in whose area of jurisdiction the board is sitting may, on the application of the Director or the chairman of the board, compel compliance with the .. directions of the board in such manner as it thinks fit, including the arrest of the person. (d) The Minister of Justice shall prescribe rules of procedure for the implementation of this section. (e) The board shall submit its reasoned findings and conclusions to the Director.". 5. In section 5H(a) of the Ordinance, the words "a mental illness" ^™^™£ntof shall be replaced by the words "an endangering illness". 6. (a) In sections 5H to 5L, the term "Psychiatric Board" shall be Terminological replaced by the term "medical board". ' amendments. (b) In section 5J to 5L of the Ordinance, the words "mental illness" shall be replaced by the words "an endangering illness". 7. Sections 5 J to 5M of the Ordinance shall be re-marked as sections 5M Addition of to 5P, references to them in the Ordinance shall be amended accordingly, sectlons• and the following sections shall be inserted before them: "Taking of 5J. Before deciding under section 5H or 51, as the t0 request a person applying for a licence ־evidence. case mav bC to practise medicine or authorised to practise medicine to appear' before a board under section 5G for exa mination, the Director may — (1) if he has reason to believe that any in formation likely to attest to the state of health of that person is in the possession of a medical institution or physician which or i) Dinei Medinat Yisrael (Nusach Chadash) No. 18, p. 421; NV vol. II, p. 198. 161 who treated him, request it or him to deliver such information to him; (2) if he has reason to believe that any doc• ument likely to attest to the state of health of that person is in the possession of another person, request such other person to deliver such document to him, and anyone request• ed to deliver information or a document under this section shall comply with the request.". Interim 5K. (a) Where the Director is satisfied that an en• Suspension. dangering illness of a person authorised to practise medicine causes such immediate danger to the public that it is not possible to wait for the termination of proceedings before the medical board or in an appeal under section 50, the Director may suspend the licence of that person until a final decision under section 5M, but for not more than three months and on condition that he refers the matter to the medical board immedia• tely after giving his decision. The provisions of sections 50 (b) and (c) shall also apply to the suspension of a licence under this section. (b) Where the medical board has not terminated the proceedings by the expiration of the period of suspension, the Director may, with the consent of the board, suspend the licence for another three months. (c) Where the proceedings have not been ter• minated by the expiration of a second period as afore• said, the Director may with the consent of the board, if the urgent need for suspension persists, suspend the licence for another three months. Duty of 5L. A person whom any information concerning an secrecy. illness reaches under the provisions of section 5G or 5J shall keep it secret and may only disclose it to the extent necessary for the implementation of the provisions of the said sections or if he has been authorised to do so by the court, or by virtue of a duty to answer questions put to him by a person empowered to carry out investi• gations as to the commission of offences.". Amendment of 8. (a) In section 9 (1) of the Ordinance — section 9 (1) in the closing passage, the words "or give the person authorised to practise medicine a reprimand or a warning" 162 shall be inserted after the words "as may be fixed by him in such order"; : (2) in the proviso, the words "for cancellation or suspen• sion" shall be deleted. (b) Section 9 (2) of the Ordinance shall be replaced by the fol• lowing subsection: "(2) (a) The Committee referred to in subsection (1) shall have the powers vested in a medical board under section 5G(b), and for this purpose the District Court may make an order under section 5G (c) on the application of the Director or the chairman of the ,Committee. (b) The Minister of Justice shall prescribe rules of procedure for the implementation of this section. (c) The Committee shall submit a written report to the Minister of Health.". (c) In section 9 (6) of the Ordinance, the words "for cancellation or suspension" shall be deleted. 9. In section 18 of the Ordinance — Amendment of section 18. (1) in subsection (1) (a) the words "or hospitals or classes of hospitals" shall be inserted after the words "clinics or classes of clinics"; (2) subsection (2) shall be re-marked as subsection (5) and the following subsections shall be inserted before it: "(2) The Director-General of the Ministry of Health shall prescribe by regulations the qualifications required for performing acts referred to in subsection (1) (a); on the basis of such regulations, the director of a clinic or hospital may permit persons qualified as prescribed in the regulations to perform acts as aforesaid. (3) Subsection (2) shall not apply to circumstances where the saving of life is at issue and the Director- General has authorised the performance of an act referred to in subsection (1) (a). (4) If the Director-General is not authorised to prac• tise medicine, regulations under subsection (2) and the grant of permission under subsection (3) shall require consultation with the chairman of the Scientific Council of the Israel Medical Assocaition or, if there is no such Council, with whoever in the opinion of the Minister of Health carries out the functions thereof.". 163 Amendment of 10. In section 22A of the Ordinance, the following subsection shall be section 22A. added at tne end: "(c) The Minister of Health may, in consultation with the Minister of Finance, prescribe examination fees for examinations under section 11 A.". YITZCHAK RABIN VICTOR.SHEMTOV Prime Minister Minister of Health EFRAYIM KATZIR President of the State (No. 65) STATE SERVICE (BENEFITS) (AMENDMENT No. 14) LAW, 5736—1976* Amendment of 1. In section 12 (a) of the State Service (Benefits) Law (Consolidated section 12. Version), 5730—19701), the following paragraph shall be added at the end: "(7) where a woman employed in teaching in a part-time post was paid a benefit** under any arrangement or direction applying to teaching personnel the ratio of whose post is at least four fifths in a period in which they are mothers of children up to the age of fourteen, the ratio of her post in the said period shall for the pur• poses of this section be regarded as increased by the tenth part of a full-time post, provided that the ratio of the post shall not in consequence of the increase exceed 100 per cent."., Application. 2. Section 1 shall apply to pensions payable on or after the 14th Elul, 5734 (1st September, 1974) in respect of periods of service beginning on or after the 12th Elul, 5723 (1st September, 1963): Provided that section 1 shall not apply to the calculation of a benefit in respect of a period for which a benefit as referred to in that section has been included in the computation of the determining salary. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State * Passed by the Knesset on the 19th Adar Bet, 5736 (31st March, 1976) and pub• lished in Sefer Ha-Chukkim No. 806 of the 9th Nisan, 5736 (9th April, 1976), p. 163; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1220 of 5736, p. 125. 1) Sefer Ha-Chukkim of 5730, pp. 65 and 120 — LSI vol. XXIV, pp. 57 and 125; Sefer Ha-Chukkim of 5731, p. 107 — LSI vol. XXV, p. 105; Sefer Ha-Chukkim of 5733, pp. 78, 80, 200 and 255 — LSI vol. XXVII, pp. 73, 77, 78, 218 and 294; Sefer Ha-Chukkim of 5735, pp. 128 and 238 —LSI vol. XXIX, pp. 158 and 318; Sefer Ha-Chukkim of 5736, pp. 10,18 and 97 — supra, pp. 6,15and 102. ** The original here uses a different word for "benefit" from that defined in section 1 of the principal Law — Tr. (No. 66) NATIONAL INSURANCE (AMENDMENT No. 21) LAW, 5736—1976* 1. In section 1 of the National Insurance Law (Consolidated Version), Amendment of 5728—1968!) (hereinafter referred to as "the principal Law") — section 1. (1) the words "including a benefit** under an agreement made under section 200, a gratuity• under section 198A and the regulations thereunder and a benefit under Chapter Nine "B" shall be added at the end of the definition of "benefit"; (2) in paragraph (2) of the definition of "the average wage", the words "between the expiration of the determining period and the beginning of the financial year" shall be replaced by the words "from the expiration of the determining period until the beginning of the financial year"; (3) the following definition shall be inserted after the definition of "the average wage": ""compensation" has the same meaning as in section 11 (c);". 2. In section 11(c) of the principal Law, the word "hereinafter" Amendment of shall be replaced by the words "in this section". section 11. 3. In section 31 (a) of the principal Law, paragraph (5) shall be Amendment of deleted. section 31. 4. In section 55 (b) of the principal Law, the expression "or (5)" Amendment of shall, in the two places in which it occurs, be deleted. section 55. 5. Section 57 of the principal Law shall be replaced by the following Amendment of section: section 57. "Linkage of 57. Subject to the provisions of section 53, injury injury benefits. benefits payable in consequence of one employment injury shall be varied from the ninety-first day after * Passed by the Knesset on.the 28th Adar Bet, 5736 (30th March, 1976) and pub• lished in Sefer Ha-Chukkim No. 807 of the 22nd Nisan, 5736 (22nd April, 1976), p. 167; the Bill and an Explanatory Note were published in HatzcCot Chok No. 1173 of 5735, p. 197. 1) Sefer Ha-Chukkim of 5728, p. 108 — LSI vol. XXII, p. 114; Sefer Ha-Chukkim of 5729, pp. 76 and 206 — LSI vol. XXIII, pp. 84 and 221; Sefer Ha-Chukkim of 5730, pp. 58, 130 and 134 — LSI vol. XXIV, pp. 51, 136 and 139; Sefer Ha- Chukkim of 5731, p. 128 — LSI vol. XXV, p. 124; Sefer Ha-Chukkim of 5732, pp. 78, 86 and 119 — LSI vol. XXVI, pp. 86, 102 and 135; Sefer Ha-Chukkim of 5733, pp. 126, 141, 142, 212 and 260 — LSI vol. XXVII, pp. 128, 152, 153, 233 and 302; Sefer Ha-Chukkim of 5734, p. 74 — LSI vol. XXVIII, p. 78; Sefer Ha-Chukkim of 5735, pp. 102, 152, 238 and 246 — LSI vol. XXIX, pp. 129,189, 316 and 325; Sefer Ha-Chukkim of 5736, p. 102 — supra, p. 109. ** The original here uses a different word for "benefit" from that defined in section 1 of the principal Law — Tr. 165 the commencing date for the payment thereof (such day hereinafter referred to as "the day of payment") in accordance with the rate of the fluctuations which occur in the average wage, and in accordance with the compensation which is due, from the day of payment onwards.". Replacement of 6. Section 67 of the principal Law be shall replaced by the following section 67. section: "Calculation 67. (a) A labour invalid whose degree of invalidity of labour is 100 per cent shall be paid a labour invalidity pension invalidity pension of by the Institute. The monthly pension shall be of an invalid whose amount equal to the daily injury benefits which were degree of invalidity is payable to the injured person — less the amount added 100 per cent. by virtue of section 57 — multiplied by thirty (such monthly amount hereinafter referred to as "the basic amount"). (b) Where in the determining period an increase of the labour invalidity pension occurs under section 68B or 68C, the basic amount shall be increased pro• portionately. (c) For the purposes of this section, "the deter• mining period" means the period beginning on the first day of the first of the two months preceding the date on which injury benefits are first due to the insured person in respect of the employment injury in question and ending on the day on which his entitlement to labour invalidity pension accrues.". Addition of The following section shall be inserted after section 67 of the prin• section 67A. cipal Law: "Calculation 67A. Where a change occurs in the amount specified of injury in Table V, and the injury benefits according to which benefits for purposes of the labour invalidity pension is calculated are less than invalidity three quarters of the ordinary wage of the insured per• pension. son, the labour invalidity pension due to the labour invalid from the date of the change shall be calculated as if the injury benefits were three quarters of the amount of the ordinary wage of the insured person but not more than the amount specified in Table V.". Replacement 8. Section 68B of the principal Law shall be replaced by the following of section sections: 68B and addition of "Linkage of 68B. (a) A labour invalidity pension shall be varied section 68C. average wage. on tne jst 0f April of every year in accordance with the rate of fluctuation of the average wage (hereinafter in this section referred to as "fluctuation"). 166 (b) A pension increased in accordance with the rate of fluctuation or by virtue of section 67 (b) shall not exceed a proportion corresponding to the degree of invalidity of the amount specified in Table V, mul• tiplied by thirty. Change in 68C. (a) The provisions of section 11 (c) shall apply invalidity mutatis mutandis to an increase of an invalidity pension. pension by virtue of (b) An increase of a pension by virtue of section section 11(c). 11 (c) — in accordance with subsection (a) or section 67(b) — shall remain in force until the 31st March next following.". 9. Section 82B of the principal Law shall be replaced by the following Replacement of section 82B sections: and addition of "Linkage of 82B. (a) A dependants' pension shall be varied on section 82C. dependants' the 1st of April of every year in accordance with pension to average wage. the rate of fluctuation of the average wage (hereinafter in this section referred to as "fluctuation"). (b) A pension increased in accordance with the rate of fluctuation or by virtue of section 67 (b) shall not exceed thirty times an amount bearing to the amount specified in Table V the same proportion as such pension bears to the full invalidity pension ac• cording to section 76. Change in 82C. (a) The provisions of section 11 (c) shall apply dependants' pension by mutatis mutandis to an increase of a dependants' pension. virtue of (b) The increase of a dependants' pension by section 11(c). virtue of section 11 (c) — in accordance with subsection (a) or section 67 (b) — shall remain in force until the 31st March next following.". 10. The following section shall be inserted after section 101: Addition of section 101A. "Linkage of 101 A. The provisions of section 11 (c) shall apply maternity mutatis mutandis to an increase of a maternity benefit.". benefit. 11. Section 103 A A of the principal Law shall be re-marked as section Re-marking. 103A, and section 103A of the principal Law shall be re-marked as section 103B. 12. In section 113 of the principal Law, the words "has completed the Amendment of section 113. qualifying period and" shall be deleted. 13. In section 115 of the principal Law, the words "as the case may be" Amendment of shall be deleted. section 115. 167 Amendment of 14. In section 127 U of the principal Law, in the definition of "insured section 127 U. person" — (1) paragraph (2) shall be replaced by the following para graph: "(2) in the case of a woman, is a resident of Israel, . _ : . became an invalid after the 23rd Adar Bet, 5730 (31st March, 1970) and subsequently a housewife, provided /" . that she was insured under Chapter Two on the deter mining date;"; (2) the following paragraph shall be inserted after para graph (2): "(2A) in the case of a woman, is a housewife resident in Israel and, in the seven years preceding the deter mining date but after the 23rd Adar Bet, 5730 (31st March, 1970), was insured for at least twelve consec utive or twenty-four consecutive or non-consecuitve months;"; (3) the expression "or (2A)" shall be inserted after the ex- pres'sion "paragraph (2)" in paragraph (3). Amendment of 15. In section .127 KK of the principal Law, the following subsection section 127KK. shall be added after subsection (c): "(d) The provisions of section 11 (c) shall apply mutatis mutandis to an increase of an invalidity pension.". Amendment of 16. In section 127 DDD of the principal Law, the words "the amount section 127DDD. of wage and severance pay" shall be replaced by the words "the amount of the ,wage and severance pay debt". Amendment of 17. Section 127 EEE of the principal Law shall be re-marked as section section 127 EEE. 127 EEE (a) and the following subsection shall be added thereafter: b) Where a debt as referred to in subsection (a) is due to several)" ' ־< benefit funds, the aggregate benefit for all the benefit funds together shall not exceed the maximum indicated in this section.". Amendment of 18. In section 127 GGG of the principal Law — section 127 GGG. (1) in subsection (a), the word "debt" shall be replaced by .... the •words "wage and severance pay debt"; (2) in subsection (2), the words "or benefit funds" shall be inserted after the words "a benefit fund" and the words "or funds" shall be inserted after the words "the fund". ,.' . , 168 19. Section 127 KKK shall be replaced by the following section: Replacement of section "Employee 127KKK. (a) Notwithstanding the provision of sec• 127 KKK. who has tion 135 (c), where an employee dies before the benefit died. due to him under this chapter has been paid to him, the benefit shall be paid in accordance with the provisions of section 7 of the Wage Protection Law, 5718—19581), or to survivors within the meaning of section 5 of the Severance Pay Law, 5723—19632), as the case may be. (b) Survivors entitled to severance pay under section 5 of the Severance Pay Law, 5723—1963, shall, for the purposes of severance pay due to them under the said section 5, be entiled to a benefit under this chapter up to the maximum amount specified in section 127 DDD and subject to the other provisions of this chapter.". 20. Section 127 MMM of the principal Law shall be replaced by the Replacement of section following section: 127MMM. "Claims by 127MMM. (a) Where the Institute has paid a benefit Institute under this chapter, the rights of the person entitled against liquidator. thereto shall, for the purposes of the collection thereof from the liquidator, pass to the Institute: Provided that where the amount of the wage and severance pay debt due to the employee from his employer exceeds the maximum benefit stated in section 127 DDD (the excess hereafter in this section referred to as "the balance of the debt"), the priority rights of the employee shall only pass to the Institute in respect of the amount by which the maximum priority amount exceeds the balance of the debt. (b) In this section, "priority rights" means the rights of the employee under section 33 (2) (a) of the Bankruptcy Ordinance, 1936 3), section 220 A (1) (a) of the Companies Ordinance4), the regulations under the Cooperative Societies Ordinance5) granting priority to wages or severance pay, and section 27 of the Severance Pay Law, 5723—1963.". 1) Sefer Ha-Chukkim of 5718, p. 86; LSI vol. XII, p. 100. 2) Sefer Ha-Chukkim of 5723, p. 136; LSI vol. XVII, p. 161. 3) P.G. of 1936, Suppl. I, p. 21 (English Edition). *) Laws of Palestine vol. I, p. 161 (English Edition). 5) Laws of Palestine vol. I, p. 360 (English Edition). 169 Addition of 21. The following section shall be inserted after section 140 of the section 141. principal Law: "Non-reduction 141. (a) A pension increased under'secton 11(c) of pension. shall not be reduced by reason only that the validity of the increase expired on the 31st March next following. (b) Upon the increase of a pension by virtue of section 11 (c) after the 31st March, the amount by which the pension would have been reduced but for the provision of subsection (a) shall not be included in calculating the base for the increase and that amount shall be set off against the increase.". Amendment of 22. In section 145 of the principal Law — section 145. (1) in subsection (a), the words "under Chapter Two or Three" shall be replaced by the words "under Chapter Two, Three or Nine "B" " and the words "the Life-Saving Ope• rations (Soldier Casualties) (Benefits) Law, 5725—19651)" shall be inserted after the words "the Fallen Soldiers' Fa• milies (Pensions and Rehabilitation) Law, 5710—1950"; (2) the following paragraph shall be added at the end of subsection (c): "(8) the Life-Saving Operations (Soldier Casualties) (Benefits) Law, 5725—1965.". Amendment of 23. In section 167 of the principal Law, the words "for the insured section 167. person in Table XI" in subsection (a) shall be replaced by the words in section 167B". Amendment of 24. In section 167A of the principal Law, the words "in respect of a section 167A. particular financial year" shall be deleted and the words "from Table XI" shall be replaced by the words "from section 167B". Addition of 25. The following section shall be inserted after section 167A of the section 167B. principal Law: "Calculation 167B. (a) The maximum amounts shall be in ac• of maximum cordance with the amounts resulting from Table XI amounts. from the 1st April of each year. (b) Notwithstanding the provision of subsection (a), if compensation becomes due after the beginning of the financial year and up to the 1st October of that year, the maximum amount calculated under Table XI for the period from the 1st October to the 31st March next following shall be increased at a rate equal to the rate of the compensation.". i) Sefer Ha-Chukkim of 5725, p. 288; LSI vol. XIX, p. 314. 170 26. In section 169 of the principal Law — Amendment of (1) in subsection (b 1), the expression "(d) and (d) (1) and section 169. (2) " shall be replaced by the expression" (d), (d 1) and (d 2)"; (2) the following subsection shall be added after subsection "(g) A female insured person, as defined in section (0: 127U(2) or (2A), shall not pay contributions under section 157 (d2) so long as she is not insured under Chapter Two.". 27. In section 181 (b) of the principal Law, the words "or to benefits* Amendment of under section 200 or to gratuities under section 198A and the regulations section 181. thereunder or to benefits under Chapter Nine "B" " shall be added at the end. 28. In section 182 of the principal Law, the figure "108" shall be Amendment of deleted. section 182. 29. Section 198 A A of the principal Law shall be re-marked as section Re-marking. 198A. 30. Section 198A of the principal Law shall be re-marked as section Amendment of 198AA and the words "pay gratuities to a person, in accordance with section 198A. rules" shall be replaced by the words "pay gratuities to a person, in money and in kind, in accordance with criteria and rules". 31. The following chapter shall be inserted after Chapter Nine "A" Addition of of the principal Law: Ntoe"B". 'Chapter Nine "B": Rights of Volunteers "Definitions. 198E. For the purposes of this chapter — "volunteer" means (1) a person who voluntarily, without re• muneration, exerts himself for the sake of another or others upon referral by a Gov• ernment Ministry, the Institute, a local au• thority, the World Zionist Organisation, the Jewish Agency for Israel or some other pub• lic body designated by the Minister of La• bour with the approval of the Labour Af• fairs Committee of the Knesset: Provided that volunteering outside Israel shall only The original here uses a different word for "benefit" from that defined in section 1 of the principal Law — Tr. 171 be recognised in categories of cases ap proved by the Minister of Labour by order; (2) a person who, without remuneration, performs security duty under any enactment, including exercises, comb-outs, guard-service and any other activity required for security purposes, otherwise than in the course of service under the Defence Service Law, 5719—1959 (Consolidated Version) i); (3) a person who extends assistance to another or others in fulfilment of a duty under law; (4) a person who voluntarily, without re muneration, does any act to save the life or property of another or others, in accord ance with rules prescribed by regulations with the approval of the Labour Affairs Committee of the Knesset, and whose act is recognised ex post facto by the Institute; (5) a voluntary unpaid member of the Red Shield of David in Israel; (6) a voluntary unpaid member of an organisation for first aid, for the prevention of damage to persons or proprety, for the care of the sick or of persons unable to look after themselves, or a voluntary unpaid member of an organisation carrying out burials, provided that the Minister of Lab our has approved the organisation by notice published in Reshumot; (7) a voluntary fireman, within the mean ing of section 1 of the Fire-Fighting Services Law, 5719—19592), or a person mobilised under section 24 of the said Law; "dependants" has the same meaning as in section 74; "remuneration" means remuneration for work from which contributions are due. Entitlement 198F. The provisions of Chapter Three and Chapter to benefits. Three "A" shall apply mutatis mutandis to a volunteer injured in the course and in consequence of a voluntary .S7vol.XHI,p. 328״Sefer Ha-Chukkim ol5719,p.286;Z (1 2) Sefer Ha-Chukkim of 5719, p. 199; LSI vol. XIII, p. 215. activity or to his dependants, as the case may be. For this purpose, an injury which occurs to a volunteer on his way to or from the place where the voluntary activity is carried out, even if not on the way from or to his residence, shall also be regarded as an injury under whichever of the said two chapters is relevant, provided that the other conditions of section 37 are fulfilled. Modes of 198G. (a) Benefits payable to a volunteer or his calculating dependants under this chapter shall, if immediately monetary benefits. before the injury he was an employee or a self-employed person, be paid in accordance with the income serving as the basis for calculating the benefit under Chapter Three and the regulations thereunder but not less than half the average wage multiplied by three (hereinafter referred to as "the minimum income"), and, if he was not an employee or a self-employed person, as if his income in the quarter preceding the injury had been the minimum income. (b) Notwithstanding the provisions of subsec• tion (a), no monetary benefits shall be paid in respect of the period before the volunteer reaches the age of fourteen, and in respect of the period between the.ages of fourteen and eighteen the monetary benefit shall be calculated in accordance with his income from any em• ployment or vocation or with what is paid to a person undergoing vocational training as referred to in section 31 (a) (3), whichever is more. (c) Where the volunteer dies as a result of the injury, his dependants shall not be entitled to benefits before the date at which the deceased would have reached the age of fourteen had he survived. Financing. 198H. The Treasury shall indemnify the Institute, at its request, for all expenditure incurred by it in paying benefits under this chapter and for such proportionate part of the administrative expenses of the Institute as arises out of the implementation of the provisions of this chapter. Transfer of, 1981. If the Institute receives compensation under the moneys to' Treasury. . provisions of Article Four of Chapter Seven where the injured person is a volunteer, the amount of the com• pensation shall be transferred to the Treasury.". 32. Section 200 A of the principal Law shall be replaced by the follow• Replacement of section ing section: 200A. 173 "Appeal against 200A. The determination of a degree of invalidity by ofde™eeaof0n virtue of an aSreement under section 200, section 198A invalidity. and the regulations thereunder or Chapter Nine "B" shall be appealable on a point of law only to the Na• tional Court, within the meaning of the Labour Courts Law, 5729—19691).". Replacement 33. Table XI of the principal Law shall be replaced by the following of Table XI. table: "Table XI (Sections 167, 167Aand 167B) Item Category of Maximum Income Minimum Income Insured Persons (in pounds) (in pounds) 1 Employee Monthly: an amount 300 per month equal to twice the or 3,600 per average wage year Half-yearly or yearly, an amount equal to twice the average wage multiplied by six or twelve, as the case may be 2. Self-employed Half-yearly or 3,600 per year person yearly: an amount equal to twice the average wage multiplied by six or twelve, as the case may be 3 Other insured Half-yearly or 720 per year" person yearly: an amount equal to twice the average wage multiplied by six or twelve, as the case may be Amendment of 34. In the Reserve Service (Compensation) Law (Consolidated Ver• Reserve Service 2 {Compensation) sion), 5719—1959 ), the following section shall be inserted after section Law. 36 C: "Calculation 36D. The provisions of sections 141 of the Insurance of minimum Law shall apply mutatis mutandis to the calculation of compensation, the minimum compensation for a consecutive period of reserve service partly before and partly on or after the 1st of April.". 1) Sefer Ha-Chukkim of 5729, p. 70; LSI vol. XXIII, p. 76. 2) Sefer Ha-Chukkim of 5719, p. 306; LSI vol. XIII, p. 350. 174 35. There are hereby repealed — Repeal. (1) the Life-Saving Operations (Casualties) (Benefits) Law 5725—19651); (2) sections 26 to 32 of the Fire-Fighting Services Law, 5719—1959; (3) regulation 11 (b) of the Emergency Regulations (Pro• tection of Educational Institutions), 5735—19742). Commencement. 36. Sections 10 to 14 shall have effect from the 13th Nisan, 5737 (1st April, 1977), section 15 from the 9th Nisan, 5734 (1st April, 1974), sec• tions 31, 35 and 38 from the 28th Tevet, 5736 (1st January, 1976) and the other sections of this Law from the 1st Nisan, 5736 (1st April, 1976). 37. (a) An organisation approved for the purposes of section 31(a) (5) Transitional provisions. of the principal Law shall be regarded as approved under paragraph (6) of the definition of "volunteer" in section 198E. (b) The provisions of Chapter Nine "B" of the principal Law shall also apply to persons who were entitled under the enactments enumerated in section 35 immediately before the repeal thereof by that section and who would continue to be so entitled had those enactments not been repealed. (c) The provisions of sections 57, 67, 68B, 68C, 82B, 82C, 141 and 167B of the principal Law as in force under this Law shall apply in respect of increases by virtue of compensation due in respect of the period subsequent to the publication of this Law in Reshumot. 38. The Minister of Finance shall, with the approval of the Constitu• Compensation for injury tion, Legislation and Juridical Committee of the Knesset, make regula• caused by tions as to the compensation payable by the Treasury to a person, or the volunteer. dependants of a person, who has sustained injury or damage through a civil wrong done by a volunteer in the course and in consequence of his voluntary activity and who has no right to compensation from any person other than the volunteer. In this section, "civil wrong" and "dependants" have the same meanings as in the Civil Wrongs Ordinance (New Version) 3). 39. This Law shall be published in Reshumot within thirty days from Publication, the date of its adoption by the Knesset. YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State 1) Sefer Ha-Chukkim of 5725, p. 288 ; LSI vol. XIX, p. 314. 2) Sefer Ha-Chukkim of 5735, p. 18; LSI vol. XXIX, p. 25. 3) Dinei Medinat Yisrael (Nusach Chadash) No. 10, p. 266; NV vol. II, p. 5. 175 (No. 67) SAVINGS LOAN LAW, 5736—1976* Definitions. 1. In this Law — (1) every term has the same meaning as in the Income Tax Ordinance1) (hereinafter referred to as "the Ordinance"), save as otherwise provided in this Law; (2) "employer" means every person who pays or is re• sponsible for the payment of work income; (3) "work income" does not include — (a) payments made to an employee to cover his expenses for keeping a vehicle nor the value of the use of a vehicle placed at the disposal of an employee; (b) payments made to an employee to cover his expenses for keeping a telephone at his place of resi• dence; (c) work income within the meaning of section 3 (i) of the Ordinance; (4) "the determining date" means the 2nd Tishri, 5740 (30th September 1979). Imposition and 2. (a) An employer shall in the tax year 1976 make a savings loan rate of loan. to the State at the rate of 4.75 per cent of the aggregate amount of work income paid by him in the tax year 1976 (such loan hereinafter referred to as "the loan"). (b) Notwithstanding anything provided in any law, the loan shall also apply to a body of persons which for the purpose of the pay• ment of taxes, fees and other compulsory charges has the same status as the State. Exemptions. 3. Local authorities and public institutions shall be exempt from the loan. For this purpose, "public institutions" means religious, cultural, educational, scientific, health, welfare and sports institutions, and in• stitutions serving some other public purpose, which are not intended to make a profit and which the Minister of Finance has designated with the approval of the Finance Committee of the Knesset. * Passed by the Knesset on the 12th Nisan, 5736 (12th April, 1976) and published in Sefer Ha-Chukkim No. 808 of the 22nd Nisan, 5736 (22nd April, 1976), p. 178; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1238 of 5736, p. 228. i) Dinei Medinat Israel (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145. 176 4. An employer shall pay the loan to the Assessing Officer at the Payment of loan. prescribed date and shall at the same date submit to him a return as prescribed. 5. Where an employer has not paid the loan or has not delivered a Assessment return to the Assessing Officer or has delivered a return but the Assessing to loan. Officer has reasonable grounds for believing that it is not correct, the Assessing Officer may assess the amount of the loan to the best of his judgment, and an assessment under this section shall be treated as an assessment under section 167 of the Ordinance. 6. (a) The loan shall bear interest at the rate of 3 per cent per annum Loan to bear interest. from the 13th Nisan, 5737 (1st April, 1976). (b) The interest shall be exempt from income tax. 7. (a) In this section — Loan linked, to index. (1) "cost-of-living index" has the same meaning as in the Defence Loan Law, 5717—19561); (2) "basic index" means the cost-of-living index to be published for December, 1976; (3) "new index" means the cost-of-living index to be pub• lished for the month of June last preceding the date of re• payment. (b) The principal of the loan shall be linked to the cost-of-living index. If at the time of repayment of any part of the loan it appears that the new index exceeds the basic index, the loan shall be repaid increased in the proportion of 90 per cent of the excess of the new index over the basic index. 8. (a) In respect of any amount of loan paid by an employer by Loan the determining date, certificates registered in his name shall be issued to certificates. him by the 15th Nisan, 5740 (1st April, 1980). (b) The certificate shall only be for amounts of pounds divisible without remainder by five. (c) The Minister of Finance shall, with the approval of the Finance Committee of the Knesset, prescribe by regulations the terms and conditions applicable to the loan certificates, including as regards their issue and redemption and balances of an amount less than the lowest denomination of the loan certificates. 1) Sefer Ha-Chukkim of 5717, p. 8 ; LSI vol. XI, p. 5. 17T Transfer and 9. (a) The loan certificates shall not be negotiable and shall not be charge. transferable except for a transfer by operation of law. (b) The loan certificates or the right to receive them shall not be chargeable except as security — (1) for a State-guaranteed obligation of the holder of the certificates or the person entitled to receive them, or in favour of the State for its guarantee; (2) for the repayment of a loan made to the holder of the certificates, or to the person entitled to receive them, in the framework of a directed credit, within the meaning of section 8 of the Bank of Israel Directions (Liquid Assets), 5731— 1971!), if the Minister of Agriculture, the Minister of Com• merce and Industry or the Minister of Tourism or a person empowered by them or by one of them has approved the charge. (c) (1) Where loan certificates or the right to receive them have or has been charged, the person in whose favour the charge was made shall be entitled to recoup himself out of the certificates before any other creditor, even if the conditions of section 4 of the Pledges Law, 5727—19672), are not fulfilled. (2) The Bank of Israel shall be given notice of loan certific• ates which or the right to receive which have or has been charged. (3) The Minister of Finance shall prescribe by regulations provisions as to notice to the Bank of Israel and the registra• tions to be effected by it and shall also prescribe as aforesaid to whom loan certificates which or the right to receive which have or has been charged, or the redemption moneys, shall be delivered. Repayment 10. (a) Fifty per cent of the aggregate amount of the loan shall be of loan. repaid in three equal consecutive annual instalments on the 1st August of each year, beginning in 1980, and the remainder in three equal con- sective annual instalments on the 1st August of each year, beginning in 1985, all with the addition of interest as provided in section 6. (b) Notwithstanding the provisions of subsection (a), a loan of an amount not exceeding 1,000 pounds made by an employer in respect of a particular business shall be repaid in full on the 19th Av, 5740 (1st August, 1980). 1) Kovetz Ha-Takkanot of 5731, p. 690. 2) Sefer Ha-Chukkim of 5727, p. 48; LSI vol. XXI, p. 44. 178 11. (a) The Minister of Finance may, with the approval of the Fi- Loan not made nance Committee of the Knesset, prescribe by regulations how any loan ^determining not made by the determining date shall be dealt with. Such regulations may also prescribe that the loan shall be converted into a tax or that it shall not be collected. (b) Regulations under subsection (a) may be general or in respect of particular classes of persons liable to the loan or according to the amount of the loan. 12. Save as otherwise provided in this Law, the provisions of the Ordi- Application of nance shall apply to the loan as if it were a part of the tax. provisions of Ordinance. 13. The Minister of Finance is charged with the implementation of this Implementation Law and may make regulations as to any matter relating to such imple- regulations. mentation. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 68) PARALLEL TAX (AMENDMENT) LAW, 5736—1976* 1. In section 2 of the Parallel Tax Law, 5733—19731), the expression Amendment of section. 2 "2.7 per cent" in subsection (a) shall be replaced by the expression "3.4 per cent". 2. This Law shall have effect from the 1st Nisan, 5736 (1st April, 1976). Commencement. YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State '* Passed by the Knesset on the 12th Nisan, 5736 (12th April, 1976) and published in Sefer Ha-Chukkim No. 808 of the 22nd Nisan, 5736 (22nd April, 1976), p. 180; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1240 of 5736, p. 242. l) Sefer Ha-Chukkim of 5733, p. 88; LSI vol. XXVII, p. 83. 179 (No. 69) EMERGENCY REGULATIONS (AREAS HELD BY THE DEFENCE ARMY OF ISRAEL — CRIMINAL JURISDICTION AND LEGAL ASSISTANCE) (CONTINUANCE IN FORCE) LAW, 5736—1976* Extension of 1. The Emergency Regulations (Areas Held by the Defence Army of validity. Israel — Criminal Jurisdiction and Legal Assistance), 5728—1967, set out in the Schedule to the Emergency Regulations (Offences Committed in Israel-Held Areas — Jurisdiction and Legal Assistance) (Extension of Validity) Law, 5728—19671),as amended by the Emergency Regulations (Areas Held by the Defence Army of Israel — Criminal Jurisdiction and Legal Assistance) (Extension of Validity) Law, 5735—1975 2) (hereinafter referred to as "the Regulations") shall have effect from the 28th Tevet, 5736 (1st January, 1976) to the 21st Tevet, 5738 (31st December, 1977). Validation. 2. Everything done from the 28th Tevet, 5736 (1st January, 1976) to the date of the coming into force of this Law which would have been validly done had the Regulations been in force at the time shall be deemed to have been validly done. Repeal of 3. The Emergency Regulations (Areas Held by the Defence Army of Emergency Israel — Criminal Jurisdiction and Legal Assistance), 5736—1976 3), are Regulations. hereby repealed. Commencement. 4. This Law shall come into force on the date of its adoption by the Knesset. YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State * Passed by the Knesset on the 3rd Iyar, 5736 (3rd May, 1976) and published in Sefer Ha-Chukkim No. 809 of the 11th Iyar, 5736 (11th May, 1976), p. 182; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1242 of5736,p.252. 1) Sefer Ha-Chukkim of 5728, p. 20; LSI vol. XXII, p. 20. 2) Sefer Ha-Chukkim of 5735, p. 229; LSI vol. XXIX, p. 306. 3) Kovetz Ha-Takkanot No. 2518 of 5736, p. 1491. COLLECTIVE AGREEMENTS (TEMPORARY PROVISION) LAW, 5736—1976* 1. The provisions of the collective agreement specified in the Schedule Collective agreement shall, in respect of the parties to the agreement and of the employees with overriding mentioned therein and their successors, prevail over any provision of effect. any collective agreement, contract of employment or other arrangement, and of any judgment or arbitral award, made or given before the coming into force of this Law and shall be valid for all intents and purposes notwithstanding the provisions of any law. 2. This Law shall have effect from the 1st Nisan, 5736 (1st April, Commencement. 1976). SCHEDULE (Section 1) The collective agreement signed on the 25th Nisan, 5736 (25th April, 1976) between the Government of Israel in the name of the State of Israel, the National Insurance Institute and the General Federation of Labour in Eretz Israel, the identifying number of which with the Chief Labour Relations Officer at the Ministry of Labour is 112/76. YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State Passed by the Knesset on the 3rd Iyar, 5736 (3rd May, 1976) and published in Sefer Ha-Chukkim No. 809 of the 11th Iyar, 5736 (11th May, 1976), p. 182; the Bill and an Explanatory Note were published in Hatza'ot Clwk No. 1242 of 5736, p. 253. 181 (No. 71) PROPERTY TAX AND COMPENSATION FUND (AMENDMENT No. 12) LAW, 5736—1976* Amendment of 1. In section 1 of the Property Tax and Compensation Fund Law, section 1. 5721—1961!) (hereinafter referred to as "the principal Law"), the fol• lowing paragraph shall be added at the end of the definition of "agri• cultural building": "(3) a building being a packing house for citrus fruit;". Amendment of 2. In section 2A of the principal Law, the words "he shall also be section 2A. allowed that period" shall be replaced by the words "that period shall also apply to him". Amendment of 3. Section 3 (a) of the principal Law shall be replaced by the following section 3. section: "(a) Property shall be taxed at percentage rates of the value there• of, as follows: (1) land 2.5 per cent (2) a residential building for which a deduc• tion under section 7A is allowed — (a) in respect of the portion of the value up to 500,000 pounds 0.6 per cent (b) in respect of the portion of the value in excess of 500,000 pounds 0.7 per cent (3) any other residential building 0.7 per cent (4) a business building let under a protected lease, other than a building regarded as a vacant building under section 7 (c) 0.6 per cent (5) a building being a packing house for citrus fruit 0.2 per cent (6) any other business building and any other special building 1.5 per cent Passed by the Knesset on the 11th Iyar, 5736 (11th May, 1976) and published in Sefer Ha-Chukkim No. 810 of the 20th Iyar, 5736 (20th May, 1976), p. 186; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1239• of 5736, p. 232. Sefer Ha-Chukkim of 5721, p. 100 — LSI vol. XV, p. 101; Sefer Ha-Chukkim of 5724, p. 91 — LSI vol. XVIII, p. 85; Sefer Ha-Chukkim of 5725, p. 197 — LSI vol. XIX, p. 206; Sefer Ha-Chukkim of 5727, p. 26 — LSI vol. XXI, p. 15; Sefer Ha-Chukkim of 5728, p. 42 — LSI vol. XXII, p. 36; Sefer Ha-Chukkim of 5729, p. 86 — LSI vol. XXIII, p. 93; Sefer Ha-Chukkim of 5730, pp. 12 and 126 — LSI vol. XXIV, pp. 10 and 130; Sefer Ha-Chukkim of 5732, p. 158 — LSI vol. XXVI, p. 182; Sefer Ha-Chukkim of 5734, pp. 69 and 120 — LSI vol. XXVIII, pp. 69 and 124; Sefer Ha-Chukkim of 5735, p. 50 — LSI vol. XXIX, p. 63. 182 (7) equipment used solely in a packing house for citrus fruit 0.5 per cent (8) any other equipment 0.8 per cent (9) stock-in-trade being packing materials in a packing house for citrus fruit 0.5 per cent (10) industrial stock-in trade 0.8 per cent (11) other stock-in-trade, except agricultural stock-in-trade 1.2 percent.5' 5 4. In section 4 of the principal Law, in the opening passage of para• Amendment of graph (8), the words "including plantations uprooted as specified in section 4. section 13 (a) E" shall be inserted after the word "plantations". 5. In section 13 (a) of the principal Law, the following paragraph Amendment of shall be added after paragraph D: section 13. "E. Where plantations have been uprooted with the prior ap• proval of the Minister of Agriculture or a person empowered by him, the value of the land on which the plantations stood shall, for three years after the date of the uprooting or until a change of ownership or until building on the land has been permitted, which• ever is the earliest, be equal to the value of a plantation of the kind which stood on the land prior to the uprooting. The Minister of Finance may, in consultation with the Minister.of Agriculture, attach conditions to the implementation of this paragraph.". 6. In section 14 of the principal Law, the words "such cost shall be Amendment of the value of the equipment" shall be replaced by the words "the value section 14. of the equipment shall be the said cost plus the amount of any gratuity or debt deducted under section 21 (b) of the Ordinance and plus any amount by which the original cost was reduced under section 96 of the Ordinance.". 7. In section 15 (c) of the principal Law, the words "after the 1st of Amendment of section 15. April of the tax year" shall be replaced by the words "in the tax year". 8. In section 16 of the principal Law, the words "in five years" shall Amendment of be replaced by the words "in two years". section 16. 9. In section 19 (c) of the principal Law, in paragraph (2), the words Amendment of "or its description is otherwise changed" shall be inserted after the words section 19. "completion of construction" and the words "as the case may be" shall be replaced by the words "or the date of the change of description". Amendment of 10. In section 26A of the principal Law, in subsection (a), the words days" shall be replaced by the words "30 days" and the words "The 15״ .section 26A contestation shall not be dealt with by the person who made the assess ment" shall be added at the end. Amendment of 11. In section 33 (a) of the principal Law, the initial portion, ending section 33. with the words "of delay" shall be marked as paragraph (1), the final portion shall be marked as paragraph (3) and the following paragraph shall be inserted between them: "(2) Tax due on immovable property under a decision on a con testation or objection shall have interest added to it at the rate of one per cent for every fifteen days of the period from the date for payment under section 20 until actual payment: Provided that where it is found upon contestation or objection that less than half the amount in dispute is due the interest shall not exceed 48 per cent.". Amendment of 12. In section 34 of the principal Law, the words "under section 18A section 34. or 33 or interest under section 25A, 33 or 51" shall be replaced by the words "interest or linkage differentials and interest under section 18A, 33, or 51". Amendment of 13. In section 36 (a) of the principal Law, the words "to a District section 36. Court, either generally or only on a point of law" shall be added at the end of paragraph (7). Amendment of 14. In section 40 of the principal Law — section 40. (1) in subsection (c), the expression "70 pounds" shall in the two places in which it occurs be replaced by the expression "60 pounds"; (2) at the beginning of subsection (d), the words "an in dividual who is" shall be inserted before the words "the owner". Amendment of !5. !n section 41A of the principal Law — section 41 A. (1) in the definition of "invalid", the portion following the word "means" shall be marked as paragraph (1) and the words "or a victim within the meaning of the Victims of Hostile Action (Pensions) Law, 5730—19701)" shall be inserted after the expression "5717—1956", appearing therein; (2) the following shall be inserted after the said paragraph 0): 1) Sefer Ha-Chukkim of 5730, p. 126; LSI vol. XXIV, p. 131. 184 "(2) an invalid, within the meaning of the Invalids (Nazi Persecution) Law, 5717—19571). a work accident invalid, within the meaning of section 59 of the Na• tional Insurance Law (Consolidated Version), 5728— 19682), a person invalided as a result of a road accident or paralysis, or a person having lost an arm or a leg whose degree of invalidity is not less than 50 per cent; (3) any other invalid whose degree of invalidity is 100 per cent. Where the percentage of invalidity of an invalid is determined under Law, such determination shall apply. Where the percentage of invalidity is not determined as aforesaid, it shall be determined under regulations made by the Minister of Finance with the approval of the Finance Committee of the Knesset.". 16. In section 46 C (1), the following paragraph shall be added after Amendment of paragraph (4) : section 46C. "(5) an aircraft, or parts thereof, approved for this purpose by the Minister of Finance or a person empowered by him, while being brought to or returned from Israel in connection with the sale, lease, repair, reconditioning or maintenance thereof in Is• rael.". 17. In section 56 of the principal Law, the words "with the addition Amendment of of interest at the rate of 1 per cent in respect of every fifteen days from section 56. the day of payment to the day of the refund" shall be added at the end. 18. In section 56A (a) of the principal Law, the words "at the rate of 9 Amendment of per cent per annum from the expiration of six months after the declaration section 56A. was submitted or from the day on which he made the payment as afore• said, whichever period ends last" shall be replaced by the words "and linkage differentials and interest under the provisions of sections 159A, 160 and 185 of the Ordinance, mutatis mutandis". 19. In section 61 of the principal Law, the words "under sections 27, Amendment of 27A and 29 (d)" shall be replaced by the words "under this Law and the section 61. regulations thereunder". 20. In section 36 of the Property and Compensation Fund (Amendment Amendment of No. 8) Law, 5732—19723) — Property and Compensation (1) in paragraph (3) — Fund (a) the subparagraph mark (a) and the words "in (Amendment respect of a residential building for which a deduction No. 8) Law. 1) Sefer Ha-Chukkim of 5717, p. 103; LSI vol. XI, p. 111. 2) Sefer Ha-Chukkim of 5728, p. 108; LSI vol. XXII, p. 114. 3) Sefer Ha-Chukkim of 5732, p. 158; LS/vol. XXVI, p. 182. 185 has been allowed under section 7A (a) of the principal Law, or" shall be deleted; (¿0 subparagraph (b) is hereby repealed; (2) paragraph (6) is hereby repealed. Application. 21. (a) The provision of section 3(a)(4) of the principal Law, as enacted by this Law, concerning a building regarded as a vacant building under section 7 (c) shall only apply to a building let on or after the 9th Nisan, 5734 (1st April, 1974). (b) Section 5 shall apply to plantations uprooted on or after the 1st Nisan, 5736 (1st April, 1976). (c) Section 11 shall apply to contestations and objections filed on or after the 1st Nisan, 5736 (1st April, 1976). (d) The other provisions of this Law shall apply from the tax year 1976. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 72) LABOUR COURTS (AMENDMENT No. 6) LAW, 5736—1976* Amendment of 1• In tne Labour Courts Law, 5729—1969x) (hereinafter referred to section 24. as the principal Law"), section 24 (a) (2) shall be replaced by the fol• lowing paragraph: "(2) an action between whoever may be parties to a special col• lective agreement, within the meaning of the Collective Agree• ments Law, 5717—19572) (hereinafter referred to as "the Col• lective Agreements Law") concerning the existence, applica• tion, interpretation, implementation or infringement of a col• lective agreement, either within the meaning of the Collective Agreements Law or within the meaning of section 37A of the Settle• ment of Labour Disputes Law, 5717—19573), or any other matter * Passed by the Knesset on the 12th Iyar, 5736 (12th May, 1976) and published in Sefer Ha-Chukkim No. 811 of the 21st Iyar, 5736 (21st May, 1976), p. 190; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1176 of 5735, p. 226. 1) Sefer Ha-Chukkim of 5729, p. 70 — LSI vol. XXIII, p. 76; Sefer Ha-Chukkim of 5731, p. 176 — LSI vol. XXV, p. 167; Sefer Ha-Chukkim of 5732, p. 73 — LSI vol. XXVI, p. 83; Sefer Ha-Chukkim of 5733, pp. 78 and 237 — LSI vol. XXVII, pp. 72 and 267; Sefer Ha-Chukkim of 5735, p. 59 — LSI vol. XXIX, p. 71. 2) Sefer Ha-Chukkim of 5717, p. 63; LSI vol. XI, p. 58. 3) Sefer Ha-Chukkim of 5717, p. 58 — LSI vol. XI, p. 51; Sefer Ha-Chukkim of 5732, p. 70 — LSI vol. XXVII, p. 77. 186 arising out of the agreement or concerning the application, inter pretation, implementation or infringement of any law;". 2. In section 25 of the principal Law, paragraph (1) shall be replaced Amendment of .c n u section 25 ״ u by thL e following paragraph: "(1) an action between whoever may be parties to a general col lective agreement, within the meaning of the Collective Agreements Law, concerning the existence, application, interpretation, imple mentation or infringement of a collective agreement, either within the meaning of the Collective Agreements Law or within the meaning of section 37A of the Settlement of Labour Disputes Law, 5717— 1957, or any other matter arising out of the agreement or concerning the application, interpretation, implementation or infringement of any law;". YITZCHAK RABIN YITZCHAK RABIN MOSHE BARAM Prime Minister Prime Minister Minister of Labour Acting Minister of Justice EFRAYIM KATZIR President of the State (No. 73) SHIPPING (SEAMEN) (AMENDMENT No. 2) LAW, 5736—1976* 1. In Chapter Sixteen of the Shipping (Seamen) Law, 5733—1973') Addition (hereinafter referred to as "the principal Law"), Articles Five to Eight of sections 163Atol63D. shall be renumbered as Articles Six to Nine and the following article shall be inserted before them : "Article Five: Suspension 163 A. Where the Director has prima facie evidence of any act or omis- Suspension sion of a seaman which is a disciplinary offence under this Law and in an emer8 which in his opinion is likely to undermine discipline in the vessel or involves actual danger to the safety of the vessel or the persons therein, he may suspend him from a particular task in a vessel or from service in a vessel or on voyages of a particular category for a period not exceeding sixty days. * Passed by the Knesset on the 25th Iyar, 5736, and published in Sefer Ha-Chukkim No. 812ofthe5thNisan, 5736 (3rd June, 1976), p. 192; the Bill and an Explana tory Note were published in Hatza'ot Chok No. 1219 of 5736, p. 121. l) Sefer Ha-Chukkim of 5733, p. 329; LSI vol. XXVII, p. 393; Sefer Ha-Chukkim of 5734, p. 108— LSI vol. XXVIII, p. 114. 187 Power to 163B. (a) The Presiding Judge may, on the application of the suspend• terminate ed seamen or the prosecutor, terminate suspension under this article, suspension or to reduce vary the conditions thereof, reduce the period thereof or extend the or extend period thereof until a date not later than the expiration of the period period thereof. of appeal against the decision of the Court in an action in respect of the offence or, where an appeal has been filed, not later than the com• pletion of the proceedings therein. This provision shall not derogate from the power of the Director to terminate suspension, to reduce the period thereof or to restrict its application. (b) Section 171 shall apply to a decision of the Presiding Judge under this article as if it were a decision af the Court. Termination 163C. Where a seaman is suspended under this article before an action of suspension in the absence in respect of the offence is filed with the Court, and an action is not of action. filed within sixty days from the day of the commencement of the suspen• sion, the suspension shall terminate. Compensation 163D. (a) Where a person, having been suspended under this article on acquittal. for a particular act or omission upon a complaint by the owner or master of the vessel or otherwise on behalf of the owner of the vessel, is acquitted by the Court of that act or omission, the Court may, if it considers that the complaint was made frivolously or baselessly, order the owner or the master of the vessel, or both, to pay to that person an amount not exceeding the wage which would have been payable to him for his work in the vessel had he not been suspended, plus interest, at a rate not exceeding the rate prescribed for the purposes of the Adjudication of Interest Law, 5721—1961 from the time at which that wage would have been due until its actual payment. (b) In the period of suspension — but not after the expiration of the period fixed for the service of the seaman by or under the service contract — the owner of the vessel shall pay to the suspended seaman, as a provisional payment and subject to the final decision of the Court under subsection (a), one half of the wage which would have been payable to him had he not been suspended. If in the period of suspension the seaman has an income from any employment or business exceeding the full wage which would have been payable to him had he not been suspended, the excess shall be deducted from the provisional payment under this sub• section. The provisions of this subsection shall not derogate from the provisions of a collective agreement applying to the employment of the seaman. (c) The Court may only exercise a power under this section upon the application of the seaman and after those concerned have been given a suitable opportunity to state their cases. i) Sefer Ha-Chukkim of 5721, p. 192; LSI vol. XV, p. 214. 188 (d) A person who has been ordered to make a payment under this section may appeal against the order, and sections 171 and 172 shall apply mutatis mutandis. (e) An order for payment under this section shall for the purposes of execution be treated as a judgment of a court (bet mishpat, i.e. ordinary court) in favour of the seaman against the person ordered.". 2. The following section shall be inserted after section 185 of the Addition of ' principal Law: section 185 A. "Set-off of 185A. The authority who disqualifies a seaman for a period of determinate period in disciplinary proceedings under disqualification. this Law may, in doing so, prescribe that the whole or part of the period of disqualification shall be set off against a period for which the seaman was suspended by reason of the offence because of which the is dis• qualified or was otherwise unable to serve in the vessel in consequence of proceedings taken against him by reason of that offence.". YITZCHAK RABIN GAD YAACOBI Prime Minister Minister of Transport EFRAYIM KATZIR President of the State (No. 74) TRAFFIC ORDINANCE (AMENDMENT No. 14) LAW, 5736—1976* 1. In section 70 (23) of the Traffic Ordinance i), the words "including Amendment of the fees for the maintenance of a wireless receiver installed in a vehicle" sect,on 70- shall be added at the end of subparagraph (b). YITZCHAK RABIN GAD YAACOBI Prime Minister Minister of Transport EFRAYIM KATZIR President of the State * Passed by the Knesset on the 24th Iyar, 5736 (24th May, 1976) and published in Sefer Ha-Chukkim No. 812 of the 5th Sivan, 5736 (3rd June, 1976), p. 193; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1234 of5736,p.214. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 7, p. 173 — NV vol. I, p. 222; Sefer Ha-Chukkim of 5736, p. 90; supra, p. 95. 189 (No. 75) CIVIL DEFENCE (AMENDMENT No. 5) LAW, 5736—1976* Amendment of 1. In section 24 of the Civil Defence Law, 5711—19511) (hereinafter section 24. referred to as "the principal Law") — (1) the expressions "five hundred pounds" and "two thou• sand pounds" in subsections (a) and (b) shall be respectively replaced by the expressions "one thousand five hundred pounds" and "five thousand pounds"; (2) in subsection (d), the expression "twenty pounds" shall be replaced by the expression "one hundred pounds". Amendment of 2. In section 24A (d) (1) of the principal Law, the expressions "twenty section 24A. pounds" and "five hundred pounds" shall be respectively replaced by the expessions "fifty pounds" and "one thousand pounds". YITZCHAK RABIN SHIMON PERES Prime Minister Minister of Defence EFRAYIM KATZIR President of the State (No. 76) NOTARIES LAW, 5736—1976« Chapter One: Licensing Licensing 1. A notary's licence shall be granted by a Licensing Committee of Committee. seven members. The Attorney-General shall be the chairman of the Com• mittee, and the Minister of Justice shall appoint the other members, two of them upon the recommendation of the Chamber of Advocates; at least two of the remaining members shall be representatives of the public and at least one shall be a notary. * Passed by the Knesset on the 25th Iyar, 5736 (25th May, 1976) and published in Hatza'ot Chok No. 812 of the 5th Sivan, 5736 (3rd June, 1976), p. 194; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1177 of 5735, p. 229. i) Sefer Ha-Chukkim of 5711, p. 78 — LSI vol. V, p. 72; Sefer Ha-Chukkim of 5724, p. 126 — LSI vol. XVIII, p. 119; Sefer Ha-Chukkim of 5729, p. 156 — LSI vol. XXIII, p. 167; Sefer Ha-Chukkim of 5730, p. 130 — LSI vol. XXIV, p. 136; Sefer Ha-Chukkim of 5735, p. 220 — LSI vol. XXIX, p. 292. ••) Passed by the Knesset on the 3rd Sivan, 5736 (1st June, 1976) and published in Sefer Ha-Chukkim No. 813 of the 13th Sivan, 5736 (11th June, 1976), p. 196; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 854 of 5729, p. 361. 190 2. (a) A person is qualified to be a notary if he meets all the fol- Qualifications, lowing requirements: (1) he is an Israeli national; (2) he is a member of the Chamber of Advocates and — (a) he has practised the profession of an advocate in Israel for at least fifteen years or (b) he has reached the age of sixty-five and has practised the profession of an advocate in Israel for at least ten years or (c) he has come to Israel as an oleh*, has practised the profession of an advocate for at least ten years, two thereof in Israel, and has submitted his application for a licence within five years after coming to Israel as an oleh; (3) he has not been convicted in or outside Israel of a criminal offence involving moral turpitude; (4) he has not been expelled or suspended from the Cham• ber of Advocates in Israel under a final judgment in a dis• ciplinary proceeding, other than a proceeding under section 78 of the Chamber of Advocates Law, 5721—19611) (herein• after referred to as the "Advocates Law") and has not had his licence cancelled or suspended in disciplinary proceedings under the Notaries (Foreign Documents) Law, 5710 — 19502); (5) the Licensing Committee has found him fit to be a no• tary after taking into consideration, inter alia, any disciplinary penalties, other than those mentioned in paragraph (4), which may have been imposed on him under the Advocates Law or the Notaries (Foreign Documents) Law, 5710—1950, within ten years prior to the grant of the licence. (b) The Licensing Committee may grant a notary's licence to a person even if he has been convicted as specified in subsection (a) (3) if ten years have elapsed since the day on which he finished undergoing his penalty and even if one of the penalties mentioned in subsection (a) (4) has been imposed on him if ten years have elapsed since the day on which it was imposed. * An oleh is an immigrant under the Law of Return, 5710—1950 (Tr.). 1) Sefer Ha-Chukkim of 5721, p. 187; LSI vol. XV, p. 196. 2) Sefer Ha-Chukkim of 5710, p. 141; LSI vol. IV, p. 103. 191 Service 3. For the purposes of subsection 2 (a) (2), a period of service as a deemed to be Judge or a member of a religious court or in some other legal capacity practice of the profession approved by the Minister of Justice, by order, for the purposes of this of an advocate. section shall be deemed to be a period of practice of the profession of an advocate in Israel, and a period of service as a Judge or notary abroad shall be deemed to be a period of practice of the profession of an advocate abroad. Opposition. 4. (a) Where the Committee finds that the applicant for a licence meets the requirements of section 2 (a), or decides that there are grounds for exercising its power under section 2 (b), it shall publish the application at the time and in the manner prescribed by regulations. (b) Any person may lodge with the Licensing Committee, at the time and in the manner prescribed by regulations, reasoned opposition to the grant of a licence to the applicant; but the Committee shall not reject the application by reason of the opposition before having given the applicant an opportunity to be heard. Register of Before a notary begins to serve — Notaries and licence fee. (1) he shall sign the Register of Notaries kept under the supervision of the Minister of Justice; (2) he shall, in the manner prescribed by regulations, deliver a specimen of his signature and seal to a person empowered in that behalf by the Minister of Justice; (3) he shall pay the fee prescribed by regulations. Annual fee. 6. (a) In the month of Tishri of each year a notary shall pay an annual fee in respect of that year, as prescribed by regulations. If he does not pay the said fee in the month of Tishri, he shall pay twice the prescribed amount. (b) Where a notary has not paid an annual fee for five years, his licence shall expire. Chapter Two: Powers of Notary Powers of 7. A notary shall be competent — notary. (1) to authenticate a signature on a document; (2) to certify that a person who signed a document in the name of another person was competent to do so; (3) to certify the correctness of the copy of a document; (4) to certify the correctness of the translation of a docu• ment; (5) to receive and certify an affidavit and any other dec• laration; 192 (6) to certify that a particular person is alive; . (7) to certify the correctness of an inventory; (8) to protest a negotiable instrument; (9) to draw up, or do any other act in respect of, a document where such drawing up or doing by a notary is required or permitted by law, including the law of a foreign state, or by virtue of another document; (10) to exercise the powers of a notary public under any other law. 8. Where a notarial document is required for use abroad, including use Exclusivity of power to perform before the representation of a foreign state in Israel, any such act as acts. specified in section 7 (1), (3), (7), (8) or (9) may only be done by a notary. 9. The provisions of this chapter shall not prevent the doing of an act Saving of by a public servant competent to do it in the discharge of his functions powers. or by some other person competent to do it under any enactment. Chapter Three: Modes and Conditions of Performance of Notarial Acts 10. (a) A notary shall not exercise any of his powers in a matter No exercise of power for the regarding himself, his relative, partner or employee or a body corporate benefit of controlled by him. relatives. (b) For the purposes of this section, "relative" means — (1) a spouse; (2) a parent, grandparent, spouse's parent, descendant, spouse's descendant and a spouse of any of these; (3) a brother, a sister and his or her spouse. 11. A notary shall not authenticate a person's signature on a document Authentication of signature. unless that person has appeared before him, has been identified and has signed the document in his presence. Certification of 12. A notary shall not certify that a particular document is a correct copy. copy of the original unless the original has been produced to him and he has compared the copy with the original and found them identical. Certification of 13. A notary shall not certify the correctness of an inventory unless it correctness of was drawn up by him or in his presence and he is well acquainted with inventory. the subject thereof. 14. A notary shall not certify that a person who has signed a document Certification that a person is in the name of another was entitled so to sign unless this has been proved entitled to sign to him by documentary evidence or, if the person signed in the name of a in the name of body corporate, by a register kept under an enactment either by a public another. servant or otherwise or by other documentary evidence. 193 Certification 15. A notary shall not certify the correctness of a translation unless he of translation. has command of the language in which the original is drawn up and the language into which it has been translated and he has prepared the trans• lation himself or has checked its correctness. Certification that 16. A notary shall not certify that a particular person was alive on person is alive. a particular day unless that person appeared before him on that day and was identified. Unstamped 17. A notary shall not exercise his power in respect of a document not document. duly stamped. Modes of 18. The Minister of Justice may prescribe by regulations further modes performing and conditions for the performance of a notarial act, and inter alia notarial act. provisions as to — (1) ascertaining the legal capacity of a person who appears before a notary for the performance of a notarial act and his proper understanding of the significance of the act; (2) records to be kept by a notary of notarial acts performed by him, copies to be retained by him of documents in respect of which he has performed any act, and the modes and dura• tion of the preservation of such records and copies. Chapter Four : Effect of Notarial Act Effect of 19. A notarial certification under this Law or the regulations thereunder certification. shall be sufficient evidence in any legal proceeding of anything said or done by the notary or by others in his presence according to the certifica• tion. Power of 20. A general power of attorney and a power of attorney for transac• attorney. tions in immovable property requiring registration in the Land Register shall not be valid unless a notary has drawn them up, or has authen• ticated the signatures appearing therein, as provided in this Law or in regulations thereunder. This provision shall not derogate from section 91 of the Advocates Law. Chapter Five: Professional Ethics Maintaining 21. A notary shall maintain the dignity of the profession and refrain dignity of from anything likely to impair such dignity. profession. Duty of loyalty. 22. In carrying out his functions, a notary shall act with fidelity and devotion. Where asked to perform an act on behalf of more than one person, he shall owe equal loyalty to all the parties, irrespective of which of them pays his fee. 194 23. A notary shall not advertise that he practises the profession of a No advertising. notary. The cases and form in which he may or shall indicate his name and profession, and the manner in which he may bring the existence of his office to the knowledge of the public, shall be specified by regulations. 24. A notary shall not, either himself or through another, solicit for No solicitation of employment. professional work to be given to him. 25. (a) To describe his profession, a notary shall not use any title Use of titles. other than "notary" (notaryori), or a corresponding title in a foreign language, prescribed by regulations. This provision shall not prevent the Use of an academic title or a title the use of which is regulated by another law. Restrictions as 26. (a) A notary shall not practise his profession in partnership with to partnership. a person who is not a notary or share his income with any such person in return for services, assistance or any other benefit in his profession: Provided that a notary may share his income with the widow and minor children of any of the following: (1) his partner or retired partner if he died while still a no• tary; (2) a notary whose office he has acquired. (b) A notary shall perform a notarial act in his own name alone even if he practises in partnership with another notary. (c) This section shall not prevent a partnership between an ad• vocate who is a notary and an advocate who is not a notary. 27. In the discharge of his functions, a notary shall not work as a hired Notary not to practise as a employee. hired employee. 28. (a) A notary shall keep secret everything brought to his know• Professional ledge by a person who avails himself of his lawful services unless other• secrecy. wise provided in any enactment or unless the client has waived secrecy in writing. (b) A person employed in the service of a notary shall keep secret matters coming to his knowledge in the course of his service to the same extent as the notary himself is bound to keep them secret. (c) A notary shall take reasonable measures to ensure that his employees maintain secrecy as provided in this section. (d) This section shall not apply to a disclosure enjoined upon a notary or his employee by court order or in legal proceedings. 29. A notary shall not use information received by him, in the discharge Notary not to of his functions, from a person who avails himself of his services, save in use information. the interest or with the permission of that person. 195 Chapter Six: Keeping of Books and Preservation of Documents Central 30. The Minister of Justice may establish Central Archives for Notarial Archives. Documents and require notaries to send to such Archives, at the time prescribed by regulations, copies of documents, or of classes of docu• ments, as shall be prescribed by regulations with the approval of the Constitution, Legislation and Juridical Committee of the Knesset. Keeping of 31. A notary shall keep books in respect of the discharge of his functions books. in which his acts shall be recorded in the manner prescribed by regula• tions. Regulations 32. The Minister of Justice shall prescribe by regulations — as to handling and inspection (1) the classes of persons entitled to inspect documents at of documents. the Central Archives for Notarial Documents (including documents delivered under section 54), the classes of persons entitled to receive copies thereof, and the procedure for in• spection and the receipt of copies; (2) the method and place for storing documents, including books as referred to in section 31, which were in the possession of a notary. Examination of 33. (a) A notary shall make documents he is required to preserve and documents and books he is required to keep under this Law available for examination by books. person appointed for this purpose by the Minister of Justice. (b) The modes of examination shall be prescribed by regulations. (c) A person appointed to carry out an examination under this section shall keep secret all information obtained by him in the discharge of his functions and may only use such information for the purposes of the discharge of such functions; this provision shall not apply to a dis• closure enjoined upon him in an investigation under law or in legal pro• ceedings. Chapter Seven: Disciplinary Jurisdiction • Disciplinary 34. A notary is guilty of a disciplinary offence if — offences. (1) he contravenes the rules of professional ethics prescribed in Chapter Five; (2) he fails to fulfil or is negligent in fulfilling a duty im• posed on him by the provisions of this Law or the regulations made thereunder; (3) in the discharge of his functions as a notary he does any act he is not competent to do under any enactment; 196 (4) he makes a certification which he knows or ought to know to be false; (5) he collects or demands for his services remuneration exceeding, or without sufficient reason collects or demands remuneration less than, the amount prescribed under this Law; (6) he is convicted in or outside Israel of an offence in• volving moral turpitude. 35. Disciplinary offences under this chapter shall be tried before the Jurisdiction of District Court of Discipline established under the Advocates Law (here• Court of Discipline of inafter referred to as "the Court"), the bench of which shall for this Chamber of purpose include at least two notaries. Advocates. 36. The Attorney-General or his representative may, on his own motion Plaint. or upon a complaint by another person, file with the Court a plaint of a disciplinary offence and may appear and plead in every proceeding under this chapter. 37. (a) The powers of the Court and the procedure in a hearing under Application of this chapter shall be the same as the powers and procedure in a hearing Advocates Law. under Chapter Six of the Advocates Law, save as otherwise provided in or under this Law. Sections 64 and 80 of the Advocates Law shall apply mutatis mutandis. (b) The Minister of Justice may by regulations prescribe special procedure for proceedings under this chapter. 38. Where it appears to the Court that a search should be made to en• Search warrant. sure the production of a certificate or document required for the invest• igation of a disciplinary offence or for a hearing, it may make a search warrant. The warrant shall be carried out in like manner as a search warrant under the Criminal Procedure (Arrest and Searches) Ordinance (New Version), 5729—19691). 39. (a) The following are the disciplinary measures which the Court Disciplinary measures. is competent to impose on a notary: (1) a warning; (2) a reprimand; (3) a fine of an amount not exceeding 20,000 pounds in respect of any one offence; (4) suspension of the licence for a determinate period not exceeding five years; (5) cancellation of the licence. 1) Dinei Medinat Ylsrael (Nusach Chadash) No. 12, p. 284; NV vol. II, p. 30. 197 (b) A fine imposed under this section shall be collected in like manner as a fine imposed by a court (beit mishpat, i.e. an ordinary court — Tr.) in a criminal proceeding. Subsidiary 40. Besides as provided in section 39, the Court shall have the powers measures mentioned in section 69 of the Advocates Law, except that the amount specified in section 69 (4) of that Law shall for this purpose be replaced by the amount of 5,000 pounds. Sections 73 and 74 of the Advocates Law shall also apply. Appeal. 4! (a) The notary and the Attorney-General or his representative may appeal against the judgment of the Court to the National Court of Discipline established under the Advocates Law, in the manner and within the time a judgment of the Court given in proceedings under the Ad• vocates Law is appealed against. (b) In an appeal under this section, the bench of the National Court of Discipline shall include at least two notaries. (c) The notary and the Attorney-General or his representative may appeal against the judgment of the National Court of Discipline to the Supreme Court within thirty days from the day on which such judg• ment is notified to them. (d) A judgment shall not be carried out until the period of appeal has elapsed or, where an appeal has been filed, until the same has been decided and no further appeal lies. Suspension of 42. (a) The Court may suspend a notary — notary. (1) against whom an information has been filed in a court (beit mishpat, i.e. an ordinary court — Tr.) for a criminal offence committed by him in the discharge of his functions which in the circumstances of the case involves moral tur• pitude; (2) who is on trial before it under this Law in a matter in which the Court may decide upon suspension or cancellation of the licence. (b) The suspension of a notary under subsection (a) (1) shall have effect until judgment is given by the (ordinary) court or, where he is convicted and the fact of the conviction is brought before the Court, until judgment is given by the Court under this Law. Where such fact is not brought before the Court within thirty days from the day on which the convicting judgment becomes final or where the conviction is set aside, the suspension shall become void. 198 (c) The suspension of a notary under subsection (a) (2) shall have effect until judgment is given by the Court. (d) Where the Court suspends or cancels the licence of a notary who has been suspended, the (earlier*) suspension shall continue until the judgment is carried out or is set aside upon appeal. (e) A notary may appeal against a decision of the Court to suspend him as if it were a judgment, and section 41 shall thereupon apply mutatis mutandis; but the filing of appeal shall not stay the suspension. Chapter Eight: Termination and Interruption of Tenure 43. The licence of a notary shall become void if — Licence becom• ing void. (1) the Minister of Justice cancels it on the application of the notary or (2) the notary ceases to be an Israeli national or (3) the notary's membership of the Chamber of Advocates ceases. 44. Where any of the fol lowing applies to a notary: Suspension of membership of (1) his membership of the Chamber of Advocates is sus• Chamber of pended by virtue of section 52A of the Advocates Law; Advocates. (2) he has limited his membership of the Chamber of Ad• vocates in accordance with section 52B of the Advocates Law; (3) his membership of the Chamber of Advocates is sus• pended under section 49 of the Advocates Law; (4) he is provisionally suspended under section 78 of the Advocates Law, the validity of his licence shall be suspended so long as the suspension or limitation is in force. Chapter Nine: Authentication of Signature of Notary 45. (a) The signature of a notary, affixed by virtue of his functions Power to under this Law or the regulations thereunder to a document intended for authentic use outside Israel, shall, on the application of an interested party, be authenticated by a State employee qualified to be a member of the Cham• ber of Advocates, appointed in that behalf by the Minister of Justice. (b) The signature of the notary shall not be authenticated until the conditions designed to ensure compliance with any enactment con• cerning the sending of the notarial document abroad have been fulfilled. * The original has different words for the two kinds of suspension — Tr. 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). Chapter Ten: Miscellaneous Regulations as to 46. The Minister of Justice may prescribe by regulations — fees for services and (1) the rate of the fee to be received by a notary for his administrative services under this Law and the cases of exemption from a fees. fee; (2) the fees payable for the services of the Central Archives for Notarial Documents. Abetting of 47. A notary who exercises his power in respect of any document know• offence. ing that the document is intended for the commission of a criminal offence or that the drawing up thereof constituted a criminal offence shall be liable to imprisonment for a term of three years or to the penalty to which the person guilty of that offence is liable, whichever is the heavier penalty. Personation. 48. A person not competent to act as a notary who holds himself out to be a notary shall be liable to imprisonment for a term of three years. Doing of act 49. (a) A person who without being competent to do so under law reserved to notary. does an act reserved to a notary by section 8 — (1) shall be liable to a fine of 10,000 pounds; (2) shall not be entitled to a fee for the act and, where a fee has been paid, shall return it to the person who paid it. (b) A person who alleges that he is competent to do an act as aforesaid shall bear the burden of proof. Acting notary. 50. In the area of a local authority where there is a Magistrates' Court but not a notary's office, the Minister of Justice may appoint a State employee who performs any function at that Court to exercise all or some of the powers of a notary, and an act done by the State employee by virtue of these powers shall be deemed to be the act of a notary. Repeal. 51. There are hereby repealed — (1) the Ottoman Law of Notaries of the 27th Zilkideh, 1331 (1913); (2) section 18 of the Registrars Ordinance (New Version), 5731—19711); (3) the Notaries (Foreign Documents) Law, 5710—1950; (4) the Fees (Notary Public) Law, 5716—19562); (5) the Notary Public Rules of the 4th July, 1918 3); but the repeal shall not affect proceedings and remedies taken or granted in respect of documents drawn up before the coming into force of this Law. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 19, p. 436; NV vol. II, p. 216. 2) Sefer Ha-Chukklm of 5716, p. 29; LSI vol. X, p. 29. 3) Laws of Palestine vol. Ill, p. 2375 (English Edition). 200 52. In section 29 of the Evidence Ordinance (New Version), 5731— Amendment of 1971!), in paragraph (2) of the definition of "public document", the words Evidence Ordinance. "a notary" shall be inserted after the words "another body having judicial or quasi-judicial powers". 53. In section 22 of the Succession Law, 5725—19632) the following Amendment of Succession Law. subsection shall be added after subsection (f): "(g) For the purposes of this section, a notary shall be deemed to be a judge.". 54. (a) If Central Archives for Notarial Documents are established, Transitional provisions. the notarial documents and the books of a notary public attached to an (ordinary) court shall be delivered to them for safe-keeping, subject to the provisions of the Archives Law, 5715—1955 3). (b) A person who before the coming into force of this Law law• fully acted as a notary for foreign documents shall be deemed to have been appointed notary on the date of its coming into force even if he lacks the qualifications mentioned in section 2. (c) A person who immediately before the coming into force of this Law was a notary for foreign documents shall deal with copies of no• tarial certifications he was required to preserve at that time as if this Law had not been adopted. (d) Signatures on foreign documents properly drawn up by a no• tary for foreign documents before the coming into force of this Law shall be authenticated in the manner indicated in Chapter Nine. (e) Where before the coming into force of this Law a notary for foreign documents committed a disciplinary offence under the Notaries (Foreign Documents) Law, 5710—1950,.that offence shall be deemed to be a disciplinary offence under this Law. (f) From the 2nd Sivan, 5736 (31st May, 1976) to the date of the coming into force of this Law, a person shall not be granted a licence to act as a notary under the Notaries (Foreign Documents) Law, 5710—1950, and the Recommendations Committee shall not consider the application of a person for a licence as aforesaid, unless the Recommendations Com• mittee made its recommendation, or application was filed, as the case may be, on or before the 17th Sivan, 5732 (30th May, 1972). 55. The Minister of Justice is charged with the implementation of this Implementation. Law and may make regulations as to any matter relating to its imple• mentation. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 18, p. 421; NV vol. II, p. 198. 2) Sefer Ha-Chukkim of 5725, p. 63; LSI vol. XIX, p. 58. 3) Sefer Ha-Chukkim of 5715, p. 14; LSI vol. IX p. 12. 201 Commencement. 56. This Law shall come into force upon the expiration of one year from the date of its publication in Reshumot, except for section 54 (f), which shall come into force on the 2nd Sivan, 5736 (31st May, 1976). YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State (No. 77) SICK PAY LAW, 5736—1976* Definitions. 1. In this Law — "collective agreement" means a collective agreement as defined in section 1 of the Collective Agreements Law, 5717—19571). whether or not it was made and submitted for registration under the said Law, and any other collective arrangement, and includes an exten• sion order under the said Law; "worker" means an employed person in respect of whom the ma tter of a payment for a period of sickness is not regulated by a collecti ve agreement; "salaried worker" means a worker the remuneration for whose work is mainly payable on the basis of a month or a longer period; "wage-worker" means a worker other than a salaried worker; "sickness" means the temporary or permanent incapacity of a worker to carry out his work, arising, according to medical findings, out of ill-health; "benefit fund" has the meaning assigned to this term in section 47 of the Income Tax Ordinance2). Right to 2. (a) A worker absent from work in consequence of sickness shall, sick pay. subject to the maximum period of entitlement under section 4, be entitled to receive from his employer — (1) from the fourth day of his absence as aforesaid, a pay- * Passed by the Knesset on the 16th Sivan, 5736 (14th June, 1976) and published in Sefer Ha-Chukkim No. 814 of the 26th Sivan, 5736 (24th June, 1976), p. 206; the. Bill and an Explanatory Note were published in Hatza'ot Chok No. 1210 of 5736, p. 46. 1) Sefer Ha-Chukkim of 5717, p. 63; LSI vol. XI, p. 58. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145. 202 ment under this Law in respect of the period of his sickness (such payment hereinafter referred to as "sick pay"); (2) in respect of the second and the third day of his absence as aforesaid, half the amount of the sick pay: Provided that the Minister of Labour may, with the approval of the La• bour Affairs Committee of the Knesset, enact by regulations provisions as to the payment of sick pay in respect of the first, the second and the third day of a worker's absence as aforesaid, and such provisions shall have effect notwithstanding any provision of this section. (b) The period of sickness shall be calculated as follows: (1) in the case of a salaried worker, it shall be all the days of his sickness, including days of weekly rest and holydays; (2) in the case of a wage-worker who worked full-time for the same employer or at the same place of employment, it shall be all the days of his sickness, except days of weekly rest and holydays; (3) in the case of a wage-worker who worked otherwise than full-time for the same employer or at the same place of em• ployment (such a worker hereinafter referred to as an "inter• mittently employed worker"), it shall be a number of days which bears to the total number of his days of sickness, except days of weekly rest and holydays, the same proportion as the number of his days of employment during the quarter of his fullest employment in the twelve months preceding his sick• ness bears to the total number of workdays in that quarter; (4) in the case of an intermittently employed worker who has not yet worked for a period of three months for the same employer or at the same place of employment, it shall be a number of days which bears to the total number of his days of sickness, except days of weekly rest and holydays, the same proportion as the weekly average of his days of employment during the period of employment preceding his sickness bears to six; (5) where a wage-worker or intermittently employed worker used to work on days of weekly rest and on holydays under a permit pursuant to the Hours of Work and Rest Law, 5711— 1951 such days shall be included in computing the period of sickness; furthermore, in the case of an intermittently em• ployed worker under paragraph (3), the words "the total num• ber of workdays in that quarter" in that paragraph shall be replaced by the word "ninety", and in the case of an inter- 1) Sefer Ha-Chukkim of 5711, p. 204; LSI vol. V, p. 125. mittently employed worker under paragraph (4) the word "six" in that paragraph shall be replaced by the word "seven". (c) The Minister of Labour may, with the approval of the Labour Affairs Committee of the Knesset, make regulations concerning procedure in connection with receipt of sick pay, including the delivery of particulars and evidence to the employer as to the sickness, as well as concerning the date of payment of the sick pay. Part-time work 3. (a) Where, on the basis of medical findings, a physician estab• or suitable lishes that owing to medical handicaps a worker is incapable for a certain other work. period of time of carrying out work of a particular nature or under certain conditions and that as a result he is only capable of carrying out his work partially, and the employer offers him suitable other full-time or part-time work at the same place of employment, the worker shall not be entitled to sick pay, but his wage for the work offered him shall not be less than the wage he would have received if he had continued with his former work, calculated on the basis of the components referred to in calculating sick pay under section 6. (b) Where the employer does not offer the worker suitable work as specified in subsection (a), the worker shall be entitled to the amount of sick pay which would be due to him but for the provisions of this section. (c) For the purposes of this section, "suitable work" means work to which medical handicaps as referred to in subsection (a) do not apply, and which is of the same kind as the work in which the worker was mainly employed in the three years immediately preceding his sickness or is other work suited to his vocational training, educational standard and physical fitness. (d) An offer of suitable work under subsection (a) requires con• sultation with the workers' committee at the place of employment. Where there is no workers' committee, the provision of subsection (b) shall apply as if the employer had not offered suitable work. Maximum period 4. (a) The period of entitlement to sick pay shall be a day and a half of entitlement per working month that the worker worked for the same employer or at to sick pay. the same place of employment from the day on which this Law first applied to him but not more than ninety days in all, less any period in respect of which the worker received sick pay under this Law. (b) Where in a particular month a worker did not work, for the same employer or at the same place of employment, on all workdays, then, for the purposes of subsection (a), twenty-five workdays shall be regarded as a working month, and a fraction of a working month shall entitle the worker to proportionate sick pay. 204 (c) A period in which sick pay insurance exists in respect of a worker under the provisions of sections 8 and 9 shall not be included in computing the period of his entitlement to sick pay: Provided that a per• iod for which he is not entitled to a payment under the conditions of insurance — except any such waiting period or qualifying period as is obligatory •under the said conditions — shall be included in the compu• tation. (d) The Minister of Labour may, with the approval of the Labour Affairs Committee of the Knesset, make regulations as to the method of computing the period of entitlement and as to periods of work and work breaks to be included in the computation: Provided that any work break in respect of which the worker is entitled to a wage or to a payment treated as wage shall be regarded as work. 5. (a) The rate of sick pay shall be seventy-five per cent of the wage Rate of sick pay. the worker would be entitled to receive in the period of his entitlement to sick pay had he continued to work. (b) Where a worker is paid according to output, the rate of sick pay shall be seventy-five per cent of the wage he would be entitled to receive in the period of his entitlement to sick pay if he continued to work and produced on each day of that period the average output per workday he produced in the three months preceding his sickness. 6. (a) The following are the components of the wage on which the Components of wage for the calculation of sick pay shall be based: purposes of (1) the basic wage; sick pay. (2) a seniority allowance; (3) a cost-of-living or price increase compensation allow:, ance; (4) a family allowance; (5) a departmental or professional allowance. (b) Where the wage of a worker is not payable according to the components enumerated in subsection (a) or to part thereof, the wage pay• able to him for an ordinary workday, plus any allowance mentioned in subsection (a) which is payable to him shall be taken into account for the purposes of that subsection. (c) The Minister of Labour may, with the approval of the Labour Affairs Committee of the Knesset, prescribe by regulations another meth• od or other components for the computation of the wage on which sick pay is to be based. 7. Sick pay payable by an employer shall in all respects be treated• Sick pay to be as wage. treated as wage. 205 Sick pay 8. An employer shall be exempt from paying sick pay to his worker insurance. under the provisions of sections 2 to 7 — (1) if he takes out sick pay insurance for him with the benefit fund with which the greatest number of workers in his trade are given sick pay insurance under a collective agreement, the conditions of his insurance not being inferior to the con• ditions of theirs; (2) in the absence of a collective agreement as referred to in paragraph (1) — if he takes out sick pay insurance for him with a benefit fund consented to by him in writing, provided that the conditions of such insurance are not inferior to the conditions on which the greatest number of workers in the State are given sick pay insurance under a collective agree• ment; (3) where the worker has not given his consent under para• graph (2) — if the employer takes out sick pay insurance for him with the benefit fund with which the greatest number of workers in the State are given sick pay insurance, the condi• tions of his insurance not being inferior to the conditions of theirs. Consent. 9. Where written consent for the purposes of section 8 is given by a majority of the workers at a particular place of employment, all the workers at that place of employment shall be deemed to have given their consent. Any change in consent thus given shall require a two-thirds majority of the workers. Denial of 10. A worker who actually works during a period of sickness, either for right to sick a wage or for other remuneration, shall not be entitled to sick pay in pay. consequence of that sickness, and if sick pay has already been paid, the employer or the benefit fund, as the case may be, may claim the return thereof or deduct it from any amount he or it owes to the worker. Application 11. A worker entitled to a payment under any enactment for a period of of other laws. incapacity for work for health reasons, other than a payment for in• validity or compensation by virtue of the Civil Wrongs Ordinance (New Version1), shall not be entitled to sick pay under this Law for the period for which he is entitled to a payment as aforesaid or of any period in respect of which that enactment expressly provides that he is not entitled to a payment for it in consequence of that sickness. Saving of 12. (a) A worker entitled to sick pay both under this Law and under rights. the conditions of employment agreed upon between him and his employer i) Dinei Medinat Yisrael (Nusach Chadash) No. 10, p. 266; NV vol. II, p. 5. 206 or customary at his place of employment shall be entitled to sick pay on one these grounds at his option. (b) This Law shall not derogate from the rights of workers under a collective agreement, irrespective of whether this Law applies to them or not. 13. (a) The Minister of Labour is charged with the implementation of Implementation and this Law and may make regulations as to any matter relating to its im• regulations. plementation. (b) Regulations under this Law may be for workers or employers in general or for particular categories of workers or employers. 14. This Law shall come into force on the 2nd Tishri, 5737 (1st October, Commencement. 1976). YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State (No. 78) ENCOURAGEMENT OF SAVING, INCOME-TAX REDUCTIONS AND GUARANTEE OF LOANS (VALIDATION) LAW, 5736—1976* 1. The Encouragement of Saving (Exemption from Income Tax) (No. 12) Order, 5736—1976, approved by the Finance Committee of the Knes• set under section 5 (a) (3) of the Encouragement of Saving, Income-Tax Reductions and Guarantee of Loans Law, 5716—19561) (hereinafter referred to as "the Law") before the coming into force of the Encourage• ment of Saving, Income-Tax Reductions and Guarantee of Loans (Amendment No. 3) Law, 5735—19752), and made after the coming into force thereof shall be deemed to have been validly made under the Law before such coming into force. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State * Passed by the Knesse! on the 16th Sivan, 5736 (14th June, 1976) and published in Sefer Ha-Chukkim No. 814 of the 26th Sivan ,5736 (24th June, 1976), p. 209; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1244 of 5736, p. 260. 1) Sefer Ha-Chukkim of 5716, p. 52 — LSI vol. X, p. 49; Sefer Ha-Chukkim of 5734, p. 56 — LSI vol. XXVIII, p. 51. 2) Sefer Ha-Chukkim of 5735, p. 166; LSI vol. XXIX, p. 214. 207 (No. 79) BANKING ORDINANCE (AMENDMENT No. 10) LAW, 5736—1976* Amendment of 1. In section 2 of the Banking Ordinance, 19411) (hereinafter referred section 2. to as "the Ordinance"), the following definition shall be added at the end: "strike" means any organised total or partial work stoppage by a group of workers and includes a go-slow strike and any other orga• nised disruption of the normal course of the work.". Addition of 2. The following sections shall be inserted after section 8N of the section 8 O to8U. Ordinance: "Declaration of 80. (a) Where the Examiner is satisfied that a par• discontinuance ticular bank is unable to conduct its business properly of services. owing to a strike at that or some other bank, he may declare that that bank has discontinued its services (the discontinuance hereinafter referred to as "discontinu• ance") and may prescribe that the declaration shall apply to all or part of the bank's services. (b) The declaration shall be published in Reshu- mot and in at least four daily newspapers appearimg in Israel. (c) The declaration may determine the date at which the bank discontinued its services, and it may determine different dates for different services. Revocation. 8P. In revoking the declaration, different revocation dates may be prescribed for different services. Deferment 8Q. (a) Where a bank-in-discontinuance and any of dates. person have agreed between them that a particular act shall or may be done or a particular liability discharged by the bank or that person at a date between the making and the revocation of the declaration, the date shall be deferred until the expiration of three business days from * Passed by the Knesset on the 16th Sivan, 5736 (14th June, 1976) and published in Sefer Ha-Chukkim No. 814 of the 26th Sivan, 5736 (24th June, 1976), p. 210; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1224 of 5736, p. 154. >) P.G. of 1941, Suppl. I, p. 85 (English Edition); I.R. of 5709, Suppl. I, p. 90 — LSI vol. II, p. 65; Sefer Ha-Chukkim of 5714, p. 88 — LSI vol. VIII, p. 73; Sefer Ha-Chukkim of 5716, p. 2 — LSI vol. X, p. 3; Sefer Ha-Chukkim of 5721, pp. 74, 114 and 172 — LSI vol. XV, pp. 71, 120 and 188; Sefer Ha-Chukkim of 5725, p. 50 — LSI vol. XIX, p. 46; Sefer Ha-Chukkim of 5726, p. 14 — LSI vol. XX, p. 11; Sefer Ha-Chukkim of 5729, p. 58 — LSI vol. XXIII, p. 62. 208 the revocation of the declaration, provided that the act or the discharge of the liability comes within the scope of the services to which the declaration applies. (b) Deferment under this section shall also ap• ply to a date prescribed under law by a judgment or other decision of a court or other judicial or a quasi-judicial authority. Interest and 8R. (a) Where a liability the date of discharge of linkage which is deferred under section 8Q bore interest prior differentials. to discontinuance, it shall continue to bear interest until the new date of discharge at the rate which applied in the period prior to discontinuance. (b) Where a liability the date of discharge of which is deferred under section 8Q is value-linked, the duty of paying linkage differentials as agreed upon shall continue during the period of discontinuance. For this purpose, "value-linked liability" means a liability the whole or part of the amount of which is linked to the rate of exchange of Israeli currency, the cost-of-living index or the price of anything else. (c) The Governor of the Bank of Israel may direct that in a period of discontinuance a person may or shall pay to the Bank of Israel any amount he owes to the bank-in-discontinuance, and the payment shall be deemed to be payment to the bank-in-discontinuance. A direction under this subsection shall be brought to the knowledge of the debtors in such manner as the Governor may direct. Compliance 8S. Where prior to the date of discontinuance a person with direction issued a cheque drawn on the bank or any other to pay. written direction to make a payment from his account with the bank, and compliance with the direction is within the scope of the services to v/hich the declaration applies, the amount involved shall be deemed to have been paid in time if the bank pays it within three busi• ness days after revocation of the declaration. Limitation of 8T. A bank-in-discontinuance shall bear no criminal responsibility or civil responsibility for any act or omission resulting ef bank. from discontinuance of the services to which the declaration applies. Defence to 8U. (a) A person who draws a cheque on a bank-in- criminal charge. discontinuance shall bear ho criminal responsibility under 209 section 14 of the Penal Law Amendment (Deceit, Black• mail and Extortion) Law, 5723—1963l) (hereinafter referred to as "the Penal Law") if the non-obligation of the bank to pay the cheque on the date specified thereon as the date of drawing is due solely to deferment under section 8Q. (b) For the purposes of section 15 (c) of the Penal Law, where a cheque is drawn on a bank-in- discontinuance, the sixty days shall not include the period between the making and the revocation of the declaration if payment of the cheque is within the scope of the services to which the declaration applies.". Extension of 3. The validity of the Banking Ordinance (Amendment No. 5) Law, validity. 5721—19612) and the Banking Ordinance (Amendment No. 6) Law, 5721—19613), shall expire on the 25th Sivan, 5738 (30th June, 1978). YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 80) PURCHASE TAX (GOODS AND SERVICES) (AMENDMENT No. 6) LAW, 5736—1976* 1. (Two terminological amendments not affecting the English version). Amendment of 2. In section 1 of the Purchase Tax (Goods and Services) Law, section 1. 5712—19524) (hereinafter referred to as "the principal Law"), the fol- 1) Sefer Ha-Chukkim of 5723, p. 130 — LSI vol. XVII, p. 153. 2) Sefer Ha-Chukkim of 5721, p. 114 — LSI vol. XV, p. 120; Sefer Ha-Chukkim of 5726, p. 14 — LSI vol. XX, p. 11; Sefer Ha-Chukkim of 5731, p. 124 — LSI vol. XXV, p. 119. 3) Sefer Ha-Chukkim of 5721, p. 172 — LSI vol. XV, p. 188; Sefer Ha-Chukkim of 5726, p. 14 — LSI vol. XX, p. 11; Sefer Ha-Chukkim of 5731, p. 124 — LSI vol. XXV, p. 119. * Passed by the Knesset on the 24th Sivan, 5736 (22nd June, 1976) and published in Sefer Ha-Chukkim No. 815 of the 2nd Tammuz, 5736 (30th June, 1976), p. 214; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1233 of 5736, p. 202. 4) Sefer Ha-Chukkim of 5712, p. 334 — LSI vol. VI, p. 150; Sefer Ha-Chukkim of 5714, p. 113 — LSI vol. VIII, p. 95; Sefer Ha-Chukkim of 5718, p. 60 — LSI vol. XII, p. 72; Sefer Ha-Chukkim of 5722, p. 44 — LSI vol. XVI, p. 34; Sefer Ha-Chukkim of 5728, p. 157 — LSI vol. XXII, p. 180; Sefer Ha-Chukkim of 5731, p. 8 — LSI vol. XXV, p. 8. 210 lowing definition shall be inserted after the definition of "sale by whole sale": "consumer price" means the price obtainable upon sale by retail, including the tax under this Law"; 3. In section 2 of the principal Law, in subsections (a) and (b), the Amendment of section 2 words "an authorised dealer therein" shall be replaced by the words "a registered dealer therein". 4. In section 3 of the principal Law, subsection (a) shall be replaced by Amendment of 3־ the following subsection: sectlon "(a) The Minister of Finance may, by order, define goods charge able with tax — except of the classes set out in the Schedule — and may fix the rates of the tax to be levied thereon in percentages of the wholesale price thereof or, in the case of fuel, tobacco and products thereof, of the consumer price thereof or at a specific amount to be levied thereon in the manner prescribed by order, or both in per centages and at a specific amount.". 5. In section 4 of the principal Law, subsections (d) and (e) are hereby ^jy"^ment of repealed, subsection (f) shall be re-marked as subsection (d) and the following subsection shall be added thereafter: "(e) Notwithstanding the provisions of subsections (a) to (c), the Minister of Finance may prescribe that the wholesale price of specified classes of goods, other than imported goods, shall be — (1) upon sale by wholesale — the consideration agreed upon, including every tax, charge, fee and other compulsory payment imposed upon that sale, as well as commission, interest for payment by instalments, payment for packaging and any other expense in effecting the sale for which the purchaser must reimburse the manufacturer; (2) upon sale to a wholesaler — the price as defined in para graph (1) with the addition of a proportion of that price prescribed by the Minister of Finance, who may prescribe different proportions for different classes of goods; (3) upon sale by retail — the price as defined in paragraph (1) with the deduction of a proportion of that price prescribed by the Minister of Finance, who may prescribe different pro portions for different classes of goods. (f) Where goods of classes prescribed by the Minister of Finance under subsection (e) are sold and the price thereof is affected by special relations between the purchaser and the seller or they have not agreed upon a price between them or the whole or part of the consideration is not in money, the wholesale price thereof shall be 211 the wholesale price as defined in subsection (e) on the date of the accrual of liability to tax, provided that the consideration agreed upon shall be replaced by the price ordinarily payable for goods of the class in question or, in the absence of such a price, the cost of the goods with the addition of the profit customary in the trade in question. (g) Notwithstanding the provisions of subsections (a) to (c), the wholesale price of imported goods shall be the value thereof under section 130 of the Customs Ordinance1) with the addition of the taxes leviable on the import thereof and with the addition of a proportion prescribed by the Minister of Finance of the said value and taxes. However, the Minister of Finance may prescribe that the wholesale price of particular classes of imported goods shall be the price obtainable therefor upon sale by retail with the deduction of a proportion prescribed by him. The proportions prescribed by the Minister of Finance under this subsection may be different in respect of different classes of goods. (h) For the purposes of this section, the wholesale price shall not include tax under this Law or under the Value Added Tax Law, 5736—19752). (i) The provisions of the Customs and Excise Duties (Variation of Tariff) Law, 5709—1949 3), shall apply to the prescribing of classes of goods and of proportions under subsections (e) and (g) as if it were an order under section 1 of the said Law.". Replacement of 6. Section 4A of the principal Law shall be replaced by the following section 4 A. section: "Price of 4A. (a) The price of a service is the price agreed up• service. on by the parties, including every tax, charge, fee and other compulsory payment imposed upon that service otherwise than under this Law or the Value Added Tax Law, 5736—1975, as well as commission, interest for payment by instalments and any other expense in effect• ing the service for which the recipient of the service must reimburse the performer thereof and, where an order under section 3A (b) has been made, also the price of the goods provided in the course of rendering the service. (b) Where the price of a service is affected by special relations between the parties or the price thereof has not been agreed upon or the whole or part of the !) Dinei Medinat Yisrael (Nusach Chadash) No. 3, p. 39; NV vol. II, p. 51. 2) Sefer Ha-Chukkim of 5736, p. 52; supra, p. 46. 3) Sefer Ha-Chukkim of 5709, p. 154; LSI vol. Ill, p. 69. 4) Sefer Ha-Chukkim of 5728, p. 98; LSI vol. XXII, p. 107. 212 consideration is not in money, the price of the service shall be the price ordinarily payable therefor on the date of the accrual of liability to tax or, in the absence of such a price, the cost of the service with the addition of the profit customary in the trade in question.". 7. Sections 5 to 5C of the principal Law shall be replaced by the Replacement of sections 5—5 C. following sections: "Date of accrual 5. (a) Upon a sale of goods to which subsection of liability (b) does not apply, liability to tax shall accrue upon to tax. delivery of the goods to the purchaser or upon com• mencement of the use thereof for commercial purposes or upon their being made available for such use, as the case may be. Where the goods are delivered in instal• ments, liability to tax on each instalment shall accrue when the same is delivered. For this purpose, "delivery" has the same meaning as in section 8 of the Sale Law, 5728—19681). (b) Upon the sale of any built-in lift, central heating apparatus or furniture or of such other built-in goods as the Minister of Finance has defined by order under the definition of "goods" in section 1, liability to tax shall accrue upon completion of installation or at some other date prescribed by the Minister of Finance. (c) In the case of a service, liability to tax shall accrue upon performance thereof. Where the service is performed in instalments, liability to tax on each in• stalment shall accrue upon performance of the same; and where the service is performed over a lengthy period and is not separable into parts, liability to tax shall accrue upon completion of performance thereof. (d) Liability to tax on imported goods shall ac• crue upon clearance thereof from the control of the Customs. Periodical 5A. (a) A dealer or performer of a service shall file return. with the Director a return in respect of any period designated by the Minister of Finance as a period of return (a return as aforesaid hereinafter referred to as a "periodical return"). A designation as aforesaid may be general or in respect of particular classes of dealers or performers of services. (b) A periodical return shall set out all the sales and services in respect of which liability to tax accrued ») Sefer Ha-Chukkim of 5728, p. 98; LSI vol. XXII, p. 107. 213 within the period of return, the aggregate price thereof for the purpose of calculating the tax and any other particular prescribed by the Minister of Finance. (c) A periodical return shall be filed within fifteen days after the period covered by it even if no sales or services chargeable with tax occurred in that period. (d) The Director may defer the dates for the filing of reports either generally or specifically or in respect of particular classes of cases. Deferment in respect of a particular person shall only be granted for special reasons which shall be recorded. Determination 5B. (a) Where a dealer or performer of a service of tax. does not file a periodical return, the tax payable by him shall be determined having regard to the extent of his business or, in the absence of data, by estimate (the determination hereinafter referred to as a "tax deter• mination"). (b) A tax determination shall not be open to contestation or appeal, and it shall become void auto• matically if a periodical return is filed: Provided that in the case of a person who alleges that he is not liable to tax the determination shall, for the purposes of con• testation and appeal, be regarded as an assessment. Assessment to 5C. (a) Where a dealer or performer of a service has best of judgment. filed a periodical return, and in the opinion of the Director the return is incorrect or incomplete, the Director may assess the tax due to the best of his judgment. (b) The assessment shall be made within five years after the filing of the return or, where the person liable to tax is convicted of giving false information in the return or of any other act involving intent to evade payment of tax due for the period of return or where an offence as aforesaid has been compounded, within ten years after the filing of the return. (c) The notice of assessment shall set out the reasons for the assessment. Determination 5D. A tax determination or an assessment may be and assessment made for several, even non-consecutive, periods of re• for several periods. turn. Amendment of 5E. (a) Where the Director is satisfied that a tax assessment and determination or an assessment is not correct, he may, tax determination. on his own motion or on the application of the assessee, 214 amend it within five years from the date on which it was made. (b) A determination or assessment referred to in subsection (a) shall not be amended where seven years have passed since the filing of the return unless the per• son liable to tax has been convicted of an act involving intent to evade payment of the tax due for the period of return or unless an offence as aforesaid has been compounded. (c) An amended determination shall be treated as a tax determination, and an amended assessment shall, for the purposes of contestation and appeal, be treated as an assessment. Service of notice. 5F. Notice of a tax determination or an assessment or of an amendment of either shall be served by hand or by registered post upon the person liable to tax. Saving of 5G. A tax determination or an assessment shall not responsibility. derogate from the duties or criminal responsibility of the person liable to tax. Contestation 5H. (a) A person who disputes an assessment may and appeal. contest it before the Director and may appeal against the decision of the Director on the contestation; and for this purpose, sections 82 to 85 and 91 of the Value Added Tax Law, 5736—1975, shall apply as if the as• sessment or decision were an assessment or a decision under that Law. (b) Where a person disputes liability to tax on imported goods, the provisions of section 154 (a) and (b) of the Customs Ordinance shall apply mutatis mutandis". 8. In section 6 of the principal Law, the words "authorised dealer" Amendment of shall wherever occurring be replaced by the words "registered dealer". section 6. 9. In section 9A of the principal Law, subsections (b) and (c) shall be Amendment of section 9A. replaced by the following subsection: "(b) The provisions of the Customs and Excise Duties (Variation of Tariff) Law, 5709—1949, shall apply to an order under sub• section (a) as if it were an order under section 1 of that Law." 10. Sections 10 to 12 of the principal Law shall be replaced by the fol• Replacement of sections 10 to 12. lowing sections : 215 "Time for 10. The following are the times for payment of the payment of tax. jax. (1) in the case of the import of goods — the time of clearance thereof from control of the Customs; (2) in the case of the keeping of stock — thirty days after the date of the coming into force of the order imposing the tax on such stock, or such other time as the Minister of Finance may prescribe; (3) in the case of a sale or the rendering of a service — the time prescribed for the filing of the periodical return in respect of such sale or service; (b) The tax due under a tax determination, an assessment or an amendment of either shall be paid within one month from the day on which notice of such determination, assessment or amendment is served upon the person liable to the tax; the same shall apply, mutatis mutandis, to a tax balance resulting from the decision upon a contestation or from a judgment. (c) The Director may defer the time for pay• ment of the tax or permit payment thereof by instal• ments, and he may subject deferment to conditions, including the giving of security. Fines and 10A. (a) Where an amount of tax including tax due interest. under a tax determination, an assessment or an amendment of either, is not paid at the prescribed time, or the time for payment thereof is deferred, the provisions of sections 96, 97, 98 (b), 100 or 101, as the case may be, of the Value Added Tax, 5736—1975, shall apply. (b) The provision of subsection (a) shall not apply to the deferment of tax on imported goods in• tended for the manufacture of goods for export if it is proved to the satisfaction of the Director that the manufactured goods have in fact been exported. (c) Where a person does not file a periodical return at the prescribed time, he shall be liable to a fine of 100 pounds in respect of every two weeks or fraction thereof of delay. The Minister of Finance may, with the approval of the Finance Committee of the Knesset, increase the amount. 216 (d) A fine, interest and linkage differentials and interest shall, for the purposes of collection thereof, be treated as tax. Crediting 11. Payments by a person liable to tax shal 1 be credited payment against against his debts under this Law in the order in which earlier debt. the same were created. Collection of tax 12. Where tax is imposed on any goods or service, or from purchaser. the rate of tax thereon increased, after the sale of the goods or rendering of the service has been agreed upon, the dealer may require the purchaser or recipient of the service to pay him the amount of the tax or additional tax to which the dealer has become liable unless other• wise provided in the agreement or in any law dealing with price control.". 11. In section 17 of the principal Law, subsection (a) is hereby repealed. Amendment of section 17. 12. In section 18 (a) of the principal Law, the words "Provided that the Amendment of section 18. examiner shall not on his own motion examine the spouse, child or parent of the person liable to tax" shall be added at the end. Repeal of 13. Section 19 of the principal Law is hereby repealed. section 19. Replacement 14. Section 19B of the principal Law shall be replaced by the following of section 19B. section: "Secrecy. !9J3. (a) A person shall not disclose any information reaching him in the course of the implementation of this Law unless — (1) the Minister of Finance has permitted it to be disclosed or (2) he is called upon to disclose it in a legal proceeding under this Law or a tax law within the meaning of the Tax Law Amendment (Exchange of Information be• tween Tax Authorities) Law, 5727—19671). (b) Where any information reaches a person under subsection (a), he shall be regarded as having received it in the course of the implementation of this Law. (c) A person who unlawfully discloses any in• formation reaching him in the course of the implemen• tation of this Law shall be liable to imprisonment for a term of one year or to a fine of 20,000 pounds.". i) Sefer Ha-Chukkim of 5727, p. 136; LSI vol. XXI, p. 135. 217 Amendment of 15. In section 22 (b) of the principal Law — section 22. (1) in paragraph (2), the words "The time for payment of the tax shall in this case be fifteen days from the day on which the Director's demand for payment of the tax is delivered to that person" shall be added at the end; (2) paragraph (3) shall be replaced by the following para• graph: "(3) The Director's demand under paragraph (2) shall to all intents and purposes be treated as an assess• ment.". Amendment of 16. In section 24 (a) of the principal Law, the word s "or that he has filed section 24. a return" shall be inserted after the words "the tax". Addition of 17. The following sections shall be inserted after section 24 of the prin• sections 24A cipal Law: and24B. "Exemption 24A. Any notice, determination or other document is- from signature. sued under this Law wjth the name and tjtje of the person issuing it indicated therein shall not require his signature. Defect in 24B. The validity of any act done under this Law shall act not to not be affected by any want of form, error or omission invalidate it. occurring therein unless such want, error or omission impairs the substance of the act or is likely to mislead.". Replacement of 18. Section 29A of the principal Law shall be replaced by the following section 29A. section: "Rounding off 29A. Every amount specified in a return filed under sec• of amounts. tion 5 A shall be rounded off to the nearest whole pound; an amount of half a pound shall be rounded off up• wards.". Amendment of 19. In the Schedule to the principal Law — Schedule. (1) paragraph (4) is hereby repealed; (2) in paragraph (12), the word "water" shall be inserted before the word "pumping"; (3) paragraphs (13) and (14) are hereby repealed. Transitional 20. (a) An objection lodged under section 5 of the principal Law provisions. before its amendment by this Law shall continue to be heard before the objection committee with which it was lodged, and the provisions of the principal Law as in force before its amendment shall apply to the objec- 218 tion and to an appeal against the decision of the objection committee: Provided that where the hearing before the objection committee has not yet begun, the objector may cancel the objection by notice to the com• mittee and file an appeal under this Law, and if he does so he shall be deemed to have filed a contestation which has been dismissed. (b) A decision of the Director given before the publication of this Law in Reshumot and not objected to under the principal Law before the amendment thereof may be contested within fifteen days from the date of such publication. 21. This Law shall come into force on the date on which the Value Commencement. Added Tax Law, 5736—1975, comes into force in respect of any class of dealers, as may be prescribed under section 147 (a) of the said Law. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 81) MIKVE YISRAEL AGRICULTURAL SCHOOL LAW, 5736—1976* 1. The Mikve Yisrael Agricultural School, founded by the Alliance Continued Israelite Universelle (Chevrat Kol Yisrael Chaverim) on the 14th Adar functioning of school. Alef, 5630, which is the first agricultural educational institution in Eretz Israel, shall continue to function as an agricultural school for the further• ance of its objects. 2. The objects of the school are to educate youth in Israel for a life Objects of school. of agriculture and settlement and to impart to it a general education, as well as Jewish culture and a Hebrew education in accordance with Israel's heritage, as customary in educational institutions in the State. 3. Variations in the memorandum of association and rules of associa• Variations in memorandum tion of the Mikve Yisrael — Kol Yisrael Chaverim Company, which and rules. manages the school, shall require the approval of the Government and of a joint committee of the Committee on Education and Culture and the Home Affairs and Ecology Committee of the Knesset. * Passed by the Knesset on the 23rd Sivan, 5736 (21st June, 1976) and published in Sefer Ha-Chukkim No. 816 of the 3rd Tammuz, 5736, (1st July, 1976), p. 222; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 116 of 5735, p. 222. 219 Purpose not - 4. (a) The land detailed in the Schedule is set aside for the use of th e to be changed. school, and its purpose shall not be changed, save upon the initiative of a Minister and with the approval of the Ministers of Education and Culture, Agriculture, and the Interior, and a joint committee of the Com• mittee on Education and Culture and the Home Affairs and Ecology Committee of the Knesset. (b) If land additional to that detailed in the Schedule is made available for use by the school, the Ministers and joint committee referred to in subsection (a) may prescribe that it shall be treated in like manner as the land detailed in the Schedule. (c) No transaction in the said land which requires registration shall be valid, no enforcement order in respect of an undertaking to effect any such transaction shall be made and no note shall be entered in respect of any such undertaking, unless the Minister of the Interior and the Minister of Education and Culture have approved the transaction or undertaking. Building 5. Notwithstanding the restrictions imposed by section 11 of the First permits. Schedule to the Planning and Building Law, 5725—19651), it shall be lawful to grant a permit for building on or using land detailed in the Schedule for any purpose intended to further the objects of the school. Implementation 6. The Minister of the Interior and the Minister of Education and and Culture are charged with the implementation of this Law and, with the regulations. consent of the Minister of Agriculture, may make regulations for its, implementation. (SCHEDULE) (Sections 4 and 5) "Map", for the purposes of this Schedule, means a map on a scale of 1:10,000 signed by the Minister of the Interior, the Minister of Education and Culture and the Minister of Agriculture and deposited at the offices of the Israel Lands Administration and the Mikve Yisrael School. Block Parcels 6012 Parts of parcel 1 as marked on the map. 6013 Parts of parcels 1 and 4 as marked on the map. 6014 Parts of parcel 2 as marked on the map. 6027 All of parcels 1—5, 12, 13, 15—25, 28, 30—40, 42—47 55, 78 and 79, as well as parts of parcels 8, 26, 27, 50, 80 and 97 as marked on the map. 1) Sefer Ha-Chukkim of 5725, p. 307; LSI vol. XIX, p. 330. 220 6032 All of parcels 5—15 and 24—29, as well as parts of parcels 2 and 17 as marked on the map. 6033 Parts of parcels 1—20 and 22—26 as marked on the map. 6034 Parts of parcels 19—21 as marked on the map. 6035 All of parcels 18—37 and 41—54, as well as parts of parcels 12—16 as marked on the map. 6046 All of parcels 1—40, as well as parts of parcel 46 as marked on the map. 6047 Parts of parcel 1 as marked on the map. YITZCHAK RABIN YOSEF BURG AHARON YADLIN Prime Minister Minister of the Minister of Education Interior and Culture EFRAYIM KATZIR President of the State (No. 82) COMMODITIES AND SERVICES (CONTROL) (AMENDMENT No. 5) LAW, 5736—1976* 1. In the Commodities and Services (Control) Law, 5718—1957i), the Chapter Two "B". following shall be inserted after section 161: "CHAPTER TWO "B": DISCONTINUANCE OF BUILDING Provisional j 16J. (a) Where it appears to a Magistrates' Court stop order. tnat a building operation is being carried out in con• travention of an order under this Law, it may, on the application of a person authorised to bring an action under section 41 ex parte, order that the building ope• ration be discontinued. (b) An order under subsection (a) (hereinafter referred to as a "provisional stop order") shall prohibit any person who appears to the court to be responsible for the carrying out of the building operation, and any * Passed by the Knesset on the 24th Sivan, 5736 (22nd June, 1976) and published in Sefer Ha-Chukkim No. 816 of the 3rd Tammuz, 5736 (1st July, 1976) p. 223; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1159 of 5735, p. 115. 1) Sefer Ha-Chukkim of 5718, p. 24 — LSI vol. XII, p. 24; Sefer Ha-Chukkim of 5719, p. 92 — LSI vol. XIII, p. 96; Sefer Ha-Chukkim of 5732, p. 97 — LSI vol. XXVI, p. 117; Sefer Ha-Chukkim of 5733, pp. 26 and 202 — LSI vol. XXVII, pp. 23 and 222. 221 person working in his service, from continuing the building operation even if he holds a permit for it under the Planning and Building Law, 5725—19651). (c) A provisional stop order shall expire thirty days after its making or after a shorter period prescribed by the court unless an information has been filed in respect of the building operation. (d) A person who considers himself aggrieved by a provisional stop order may apply to the court which made it for its cancellation. (e) Where an information has been filed, the court with which it has been filed may cancel the pro visional stop order or may extend its validity, uncon ditionally or subject to conditions; and upon giving judgment, the court may make the order final, with or without variations, extend its validity for such period as it may think fit, or cancel it. Penalties. !gK. A person who fails to comply with a provisional or final stop order under section 16J which has been served upon him shall, without prejudice to the penalty of imprisonment applicable to him under section 39, be liable to a fine of 50,000 pounds and to a fine of 1,000 pounds or imprisonment for seven days in respect of every day that the offence continues.". YITZCHAK RABIN Prime Minister EFRAYIM KATZIR President of the State (No. 83) ABSENTEES' PROPERTY (COMPENSATION) (AMENDMENT) LAW, 5736—1976* Amendment of 1. In section 4 of the Absentees' Property (Compensation) Law, section 4. 5733—1973 2) (hereinafter referred to as "the principal Law"), the words "three years" shall be replaced by the words "eight years". 1) Sefer Ha-Chukkim of 5725, p. 307; LSI vol. XIX, p. 330. * Passed by the Knesset on the 1st Tammuz, 5736 (29th June, 1976) and published in Sefer Ha-Chukkim No. 817 of the 3rd Tammuz, 5736 (1st July, 1976), p. 226; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1248 of 5736, p. 304. .S/vol.XXVII,p. 176״Sefer Ha-Chukkim of 5733,p. 164;Z (2 2. (a) Section 10 of the principal Law shall be re-marked as section Amendment of 10־ a), and after the words "shall be paid to him in cash", appearing section) 10 therein, shall be inserted the words "with the addition of interest at the maximum rate| prescribed .for the purposes of the Adjudication of In terest Law 5721—19611). from the day on which the claim for compen sation was filed under section 4 until the date of payment". (b) The following subsection shall be added after subsection (a): "(b) • The claimant may, instead of payment under subsection (a), opt for the whole amount of compensation to be paid to him in bonds as referred to in the final portion of subsection (a).". 3. In section 15(e) of the principal Law, the words "or on the 1st Amendment of 15־ October of any year in which a claim was filed after 1975" shall be section inserted after the words "beginning 1975". YITZCHAK RABIN HAIM J. ZADOK YEHOSHUA RABINOVITZ Prime Minister Minister of Justcice Minister of Finance EFRAYIM KATZIR President of the State (No. 84) TOURIST SERVICES LAW, 5736—1976* Chapter One: Interpretation 1. In this Law — "hotel" includes a boarding-house, a rest house, a guest house and Definitions. any other similar place in which lodging facilities are provided or offered, for consideration, for nine or more persons simultaneously; "this Law" includes regulations made thereunder; "camping site" means an area prepared for lodging in field conditions where lodging facilities are provided or offered, for consideration, for nine or more persons simultaneously; "tourist office" means one of the following: (1) a person who organises sightseeing trips in Israel for consideration, either by way of business or occasionally, or without consideration but regularly, except — 1) Sefer Ha-Chukkimoi5721,p. 192; LSI vol. XV, p. 214. * Passed by the Knesset on the 30th Sivan, 5736 (28th June, 1976) and published in Sefer Ha-Chukkim No. 818 of the 9th Tammuz, 5736 (7th July, 1976), p. 228; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1030 of 5735, p. 85. 223 (a) sightseeing trips of a school, within the meaning of the Education Ordinance 1), for its students; (b) sightseeing trips of an institution or undertaking for its pupils or employees; (c) sightseeing trips of a public organisation in Israel which has regular reciprocal relations with correspond• ing public organisations in foreign countries, provided that the Minister of Education and Culture or the Minister of Foreign Affairs, in consultation with the Minister of Tourism, has approved the public orga• nisation for the purposes of this paragraph; (2) a person who, either by way of business or occasionally, places a vehicle — other than a taxi within the meaning of the Traffic Rules, 5721—19612) — with its operator, at the dis• posal of persons booking sightseeing trips; (3) a person who, for consideration and by way of business, gives professional advice on any matter referred to in para• graph (1) or (2); "travel agency" means a person who, for consideration or by way of business, does any of the following, either in addition to the activities of a tourist office or as a separate activity: (1) organises sightseeing trips to Israel or to foreign coun• tries or books services in any business for the purposes of sightseeing trips as aforesaid; (2) books or sells travel tickets or travel vouchers to foreign countries or for sightseeing trips; (3) engages in obtaining entry visas, visas for a temporary stay and exit visas, under Israeli or foreign law, for the purposes of sightseeing trips or travel as aforesaid; (4) for consideration and by way of business gives pro• fessional advice on any matter referred to in paragraphs (1) to (3); "sightseeing trip" means a sightseeing trip along a fixed route or otherwise and includes an excursion, but does not include the trans• portation of passengers from one place to another along a fixed line of travel, and "organisation of a sightseeing trip" includes the conduct of a sightseeing trip and an offer or consent to conduct a sightseeing trip; "the Minister" means the Minister of Tourism; 1) Laws of Palestine vol. I, p. 623 (English Edition). 2) Kovetz Ha-Takkanot of 5721, p. 1425. "foreign tourist" means a person who enters and.stays in Israel under a visitor's permit of residence or permit of transitory resi• dence, within the meaning of the Entry into Israel Law, 5712— 1952!), or under an order or permit issued by virtue of section 17 of the said Law. Chapter Two: Regulation of Tourist Services 2. The following are tourist services: Tourist services defined. (1) a hotel, including any service provided therein and any business situated within its precincts and intended mainly for its guests ; (2) a camping site; (3) a travel agency, and the carrying on of any other busi• ness concerned with incoming or outgoing tourism, except business concerned with international travel; (4) a tourist office; (5) guide services provided for consideration or provided by a person transporting passengers for consideration or a person joining or accompanying a group of foreign tourists — (a) on a sightseeing trip or (b) at a site or institution of interest to foreign tourists, except guidance within the precincts of an institution provided on its behalf; (6) the regular carrying on of the business of organising conferences, seminars, symposia and study groups in which foreign tourists mainly participate, including the carrying on of the business of interpreter services for the same. 3. The Minister may, with the approval of the Economic Committee Regulation of of the Knesset, by regulations, regulate the activity and modes of ope• tourist services. ration of a tourist service and, inter alia, prescribe — (1) requirements and tests for — (a) the licensing of tourist services, except hotels and camping sites; (b) the classification of tourist services; (2) appropriate arrangements and facilities for persons using the service; (3) the duty of a person carrying on the business of a tourist service to insure, in the manner to be prescribed, the persons 1) SeferHa-Chukkim of 5712, p. 354;LSIvol. VI,p. 159. 1) Sefer Ha-Chukkim oi 5713, p. 108; 15/vol. VII, p. 86. 225 using the service and their property and, in the case of a travel agency or tourist office, also to provide security, in the manner to be prescribed, for the fulfilment of its obliga• tions towards customers and suppliers of tourist services; (4) provisions as to the advertising of tourist services; (5) fees for licensing or any other activity by virtue of this Law. rrovision ot (a) The Minister may by regulations prescribe — services through professionals. (1) the duty of providing a particular tourist service through professionally qualified persons; (2) in consultation with the Minister of Labour, rules as to the training and qualifications of guides and hotel managers, as to travel experts, tourist transportation experts and authorised clerks, as defined by the regulations, and as to expert managers and professional personnel of businesses referred to in section 2 (6). (b) Where any enactment grants the Minister of Labour power to regulate training and qualifications for tourist callings and the super• vision thereof, he shall exercise that power after consultation with the Minister of Tourism ; the duty of consultation shall not apply to powers under the Apprenticeship Law, 5713—19531), except in respect of programmes for examinations held thereunder. Prescribing and 5. The Minister may, with the approval of the Economic Committee advertising of of the Knesset, prescribe by regulations — prices. (1) maximum prices for tourist services, and the prohibition or restriction of the receipt or giving of a consideration ad• ditional to the prescribed price: Provided that the Minister shall not prescribe a price for transportation by a means of transport except with the consent of the Minister of Trans• port; (2) minimum prices for the services of tourist guides; (3) the duty of displaying prices referred to in paragraphs (1) and (2) and the modes of displaying and advertising them. Prohibition of 6. A person carrying on a tourist service shall not unreasonably refuse refusing or to provide a service within the scope of his business or attach to the attaching conditions to provision thereof conditions not permitted by regulations. service. i) Sefer Ha-Chukkim of 5713, p. 108; LSI vol. VII, p. 86. 226 7. (a) A person accompanying a foreign tourist on a sightseeing trip Prohibition of as à guide or driver or in any other capacity shall not request, receive or commission to tourist guide. agree to receive any commission or other consideration from any person for directing a foreign tourist to a particular business establishment or in respect of goods or services acquired therein by a foreign tourist. (b) No person shall give or offer any commission or consideration referred to in subsection (a). 8. The Minister may, with the approval of the Economic Committee Regulation of accommodation of the Knesset, prescribe rules for such part of the rooms in a hotel as is for foreign set aside for the accommodation of foreign tourists in a particular season tourists. or place, either for individuals or for groups and either for travel agencies or for tourist offices: Provided that a person in actual occupation of accommodation at a hotel shall not be requested to vacate it during the period for which he booked it. 9. (a) A tourist office or travel agency shall not offer a sightseeing Approval of sightseeing trip. trip in Israel unless the Minister has approved it in advance in writing. (b) The Minister may direct changes in the programme of a sightseeing trip and may lay down provisions as to guidance thereat and as to the arrangements for the accommodation, convenience and comfort of the participants, and he may, with the consent of the Minister of Transport, lay down provisions as to the type, fitness and number of vehicles to be used for a sightseeing trip of a tourist office and the modes of operation of a tourist office using any vessel or aircraft. 10. The Minister may, in the manner prescribed by regulations, confer Approved tourist upon any tourist services, as well as upon other undertakings and services business. on their application, the style, designation or emblem of an approved business for foreign tourists or some other similar designation; and he may regulate the manner of using the style, designation or emblem so conferred and the modes of cancelling it. 11. (a) The Minister may prohibit, require, restrict, impose super• Supplementary powers. vision on or grant exemption from any matter he is authorised to regulate under this Law, and he may do so either generally or according to classes, grades or branch establishments of tourist services. (b) The Minister may enact any supplementary or subsidiary provision required for the exercise of his powers under this Law, including modes of enforcing provisions as aforesaid. 12. (a) A person competent to issue a licence or other document (both Powers in respect hereinafter referred to as a "licence") under this Law may refuse to issue of licences. or renew it or subject its issue to pre-conditions or attach conditions to it; 227 and he may cancel or vary it or vary conditions prescribed in respect of it in any one of the following cases: (1) the circumstances under which the licence was issued have changed; (2) provisions of this Law or conditions prescribed there• under have been infringed; (3) any act or omission of the licensee in a matter relating to tourist services disqualifies him, in the opinion of the Minis• ter, for a licence issued to him or for a class or grade to which he has been assigned; (4) the licensee has been convicted of an offence involving moral turpitude or an offence under an enactment relating to his business; (5) it has been proved to the Minister that the licensee has. not met or will not be able to meet his obligations towards• customers or suppliers within the scope of his business. (b) A decision under this section may be limited or unlimited in time or may come into force upon the licensee failing to fulfil a condition attached to it. (c) Where a licence is cancelled or a grade denied otherwise than by the Minister, the licensee may lodge objection with the Minister in the manner and at the time prescribed by regulations. (d) A licence shall not be cancelled unless the licensee has been given a reasonable opportunity to be heard. (e) Where a tourist service requires licensing both under this Law and under the Licensing of Businesses Law, 5728—1968it shall not be licensed hereunder until it has been granted a licence under the latter Law. Chapter Three: Offences, Prosecution and Penalties Offences and 13. (a) The following are liable to a fine of 10,000 pounds or, in the- penalties. case 0f a body corporate, 40,000 pounds: (1) a person who contravenes any provision of section 7 or 9 (a) or any regulation, rule or provision under section 3, 4, 8, 9 (b), 10 or 24 unless the regulation, rule or provision prescribes a different penalty; (2) a person who interferes with an inspector in the dis• charge of his functions or does not comply with his demands, under section 19. i) Sefer Ha-Chukkim of 5728, p. 204; LSI vol. XXII, p. 232. 228 (b) A person who operates a tourist service without a licence Tequired under section 3 (1) (a) shall be liable to a fine of 20,000 pounds or imprisonment for a term of six months or, in the case of a body corporate, to a fine of 80,000 pounds; if he continues to operate it after receiving a warning from the person appointed for this purpose by the Minister or does not fulfil any condition prescribed therein, he shall, in addition to the penalty prescribed heretofore in this subsection, be liable to a fine of 1,000 pounds or imprisonment for a term of seven days in respect of every day on which the offence continues or, in the case of a body corporate, to a fine of 4,000 pounds in respect of every day as aforesaid. (c) A person who knowingly makes a false statement or furnishes false particulars in reply to questions of an inspector under section 19 shall be liable to a fine of 20,000 pounds or imprisonment for a term of six months or, in the case of a body corporate, to a fine of 80,000 pounds. (d) A person who contravenes any provision of section 6 or any regulation made under section 5 shall incur'(the penalty precribed for that kind of offence under section 39 of theJCommodities and Services (Control) Law, 5718—19581). 14. (a) Where an offence under this section is committed by a body Responsibility for offence. of persons, every person who at the time of its commission was an active director or a partner — other than limited partner — of that body or a senior employee thereof responsible for the sphere 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 steps to ensure compliance with this Law. (b) Where an offence under this Law is committed by an employee or agent acting within the scope of his functions, his employer or principal shall also be guilty thereof unless he proves that it was committed with• out his knowledge and that he took all reasonable steps to ensure comp• liance with this Law. 15. A person who alleges that he has a licence under this Law shall have Onus of proof. to prove the same. 16. (a) Where a charge is brought against a person who operates a Discontinuance tourist service not licensed as required under section 3 (1) (a), the Min• of tourist service. ister may, in writing, order the temporary discontinuance of the service, including the closing of the place in which it is provided or offered; dis• continuance as aforesaid shall not extend beyond sixty days from the date i) Sefer Ha-Chukkim of 5718, p. 28 ; LSI vol. XII, p. 24. 229 on which the order is made or beyond the date of judgment, whichever is the earlier. The court may, on the application of an aggrieved party, cancel the order or confirm it with or without variations. An order as aforesaid shall come into force five days after it is made unless a later date is indicated therein or it is cancelled before then. , (b) Where a person is convicted of an offence under this Law, the court may, in addition to any penalty, order the discontinuance of his car• rying on the business of a tourist service, including the closing of any premises, or order any other measure it deems expedient for such dis• continuance or order him to refrain, in the business in question, from any activity specified in the order for such period as it may prescribe. (c) A person who does not comply with an order under subsec• tion (b) shall be liable to a fine of 100,000 pounds or imprisonment for a term of one year or, in the case of a body corporate, to a fine of 400,000 pounds, and to a fine of 3,000 pounds or imprisonment for a term of fourteen days in respect of every day on which the offence continues after service of the order or, in the case of a body corporate, to a fine of 12,000 pounds in respect of every such day as aforesaid. (d) A person who does not comply with an order under subsec• tion (a) shall be liable to a fine of 20,000 pounds or imprisonment for a term of six months or, in the case of a body corporate, to a fine of 80,000 pounds, and to a fine of 1,000 pounds or imprisonment for a term of seven days in respect of every day on which the offence continues after service of the order or, in the case of a body corporate, 4,000 pounds in respect of every day as aforesaid. (e) Where a person has been convicted under subsection (c) or (d), the court shall have all the additional powers mentioned in subsection (b). Implementation 17. An order under section 16 (a) or (b) may direct the police or an of order. inspector specified in the order to enter the premises in respect of which the order has been made, and it shall be lawful to take every measure, including the reasonable use of force required in the circumstances of the case, so as to ensure compliance with the provisions of the order. Saving of laws. 18. Nothing in this Law shall be construed as derogating from the powers of the court under the Contempt of Court Ordinance1), but a person shall not bear responsibility both under this Law and under the said Ordinance. i) Laws of Palestine vol. I, p. 356 (English Edition). 230 Chapter Four: Miscellaneous Provisions 19. An inspector appointed in that behalf by the Minister may, if he is Powers of satisfied that it is necessary to do so in order to ensure the implementation inspector. of this Law or to prevent an offence against its provisions — (1) examine any person carrying on the business of a tourist service and require him to produce to him a licence under this Law and other documents and to furnish him with infor• mation and statements which may, in the opinion of the inspector, indicate that an offence under this Law has been committed ; (2) enter at any reasonable time any place in which tourist services are provided, inspect all equipment and installations therein and every activity conducted therein under this Law, carry out a search therein and demand to be furnished with whatever in his opinion may indicate that an offence under this Law has been committed: Provided that he shall not enter a guest's own room in a hotel when a guest is therein. 20. (a) The Minister may, with the approval of the Economic Com• Appointments mittee of the Knesset, make regulations as to the appointment, and and definition of tasks. definition of the tasks, of any person, as may in his opinion be required for the implementation of this Law. (b) For the purposes of this Law, the Minister may, with the approval of the Economic Committee of the Knesset, make regulations as to the appointment of boards and advisory committees of representa• tives of the public and State employees. 21. The provisions of sections 8, 12, 15 and 19 shall apply to a tourist Application to service in a health resort, within the meaning of the Health Resorts health resorts. Authority Law, 5733—1973*), and to offences under the said Law relating to a tourist service in a health resort: Provided that the powers of the Minister under the said sections shall be exercised with the consent of the Minister of Health and that powers under section 12 shall be exercised by a person competent to issue a licence under the said Law. 22. In the Second Schedule to the Planning and Building Law, 5725— Amendment of 19652) _ Planning and Building Law. (1) in section 1, the word "five" shall be replaced by the word "six"; 1) Sefer Ha-Chukkim of 5733, p. 181 ; LSI vol. XXVII, p. 195. 2) Sefer Ha-Chukkim of5725, p. 307;£S/vol. XIX, p. 330. 231 (2) in section'2, the words "The Minister of Defence shall appoint one representative" shall be replaced by the words "The Minister of Defence and the Minister of Tourism shall each appoint one representative"; (3) in section 7, the word "five" shall be replaced by the word "six" and the words "the Minister of Tourism" shall be inserted after the words "the Minister of Transport". Saving of laws. 23. (a) The provisions of this Law shall not derogate from the pro visions of the Antiquities Ordinance *) or the Antiquities (Enclosures) Ordinance, 19352). (b) The provisions of this Law are in addition to and not in derogation of the National Parks and Nature Reserves Law, 5723—1963 3) Implementation. 24. The Minister is charged with the implementation of this Law and he may, with the approval of the Economic Committee of the Knesset, make regulations additional to those referred to in this Law as to any matter relating to its implementation. Repeal. 25. The Guides Ordinance4) is hereby repealed. Commencement. 26. This Law shall come into force upon the expiration of six months from the date of its publication. YITZCHAK RABIN MOSHE KOL Prime Minister Minister of Tourism EFRAYIM KATZIR President of the State (No. 85) EMERGENCY REGULATIONS (COMMODITIES AND SERVICES (CONTROL) — FURTHER PROVISIONS) (EXTENSION OF VALIDITY) (No. 2) LAW, 5736—1976* Extension of 1• The validity of the Emergency Regulations (Commodities and Ser- validity. vices (Control) — Further Provisions), 5736—1975s) (hereinafter referred !) Laws of Palestine vol. I, p. 28 (English Edition). 2) P.G. of 1935, Suppl. I, p. 147 (English Edition). 3) Sefer Ha-Chukkim of 5723, p. 149; LSI vol. XVII, p. 184. 4) Laws of Palestine vol. I, p. 742 (English Edition).' * Passed by the Knesset on the 30th Sivan, 5736 (28th June, 1976) and published in Sefer Ha-Chukkim No. 819 of the 9th Tammuz, 5736 (7th July, 1976), p. 236; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1243 of 5736, p. 255. 5) Kovetz Ha-Takkanot of 5736, p. 226; Sefer Ha-Chukkim of 5736, p. 84 — supra, ...׳,.. .p. 90 232 to as "the Regulations") is hereby extended until the 17th Tevet, 5737 (7th January, 1977). 2. The Minister of Commerce and Industry may at any time, by order Power of early published in Reshumot, revoke the whole or part of the Regulations or revocatlon• restrict powers conferred thereunder. 3. This Law shall come into force on the 10th Tammuz, 5736 (8th Commencement. July 1976). YITZCHAK RABIN HAIM BAR-LEV Prime Minister Minister of Commerce and Industry EFRAYIM KATZIR President of the State (No. 86) INCOME TAX ORDINANCE (AMENDMENT No. 3 of 5723—1963) (AMENDMENT No. 3) LAW, 5736—1976* 1. In section 12 of the Income Tax Ordinance (Amendment No. 3) Amendment of Law, 5723-19631) - section 12. (1) in the marginal note, the words "for the tax years 1962 to 1975" shall be replaced by the words "for the tax years 1962 to 1978"; (2) in subsection (b), the words "in the tax years 1968 to 1975" shall be replaced by the words "in the tax years 1968 to 1978". YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State * Passed by the Knesset on the 1st Tammuz, 5736 (29th June, 1976) and published in Sefer Ha-Chukkim No. 819 of the 9th Tammuz, 5736 (7th July, 1976), p. 236; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1234 • of 5736, p. 216. 'i) Sefer Ha-Chukkim of 5723, p. 73 — LSI vol. XVII, p. 87; Sefer Ha-Chukkim of 5728, p. 180 — LSI vol. XXII, p. 208; Sefer Ha-Chukkim of 5733, p. 170 — LSI vol. XXVII, p. 186. 233 (No. 87) DEVELOPMENT LOAN (AMENDMENT No. 15) LAW, 5736—1976* Amendment of 1. In section 6 of the Development Loan Law, 5720—1960*) (hereinafter section 6. referred to as "the principal Law"), paragraph (3) shall be re-marked as paragraph (4) and the following paragraph shall be inserted before it: "(3) that the bonds shall only be sold to a banking institution, within the meaning of the Bank of Israel Law, 5714—19542), to a benefit fund, within the meaning of section 47 of the Income Tax Ordinance 3) or to a particular category of benefit funds as afore said;". Amendment of 2. In section 8 of the principal Law, the expression "section 6 (3)" section 8. shall be replaced by the expression "section 6 (4)". YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 88) ADJUDICATION OF INTEREST (AMENDMENT) LAW, 5736— 1976** Amendment of 1• Section 5 of the Adjudication of Interest Law, 5721—19614), shall section 5. be re-marked as section 5 (a), the words "or from such other day, begin ning with the day on which the cause of action arose, as the judicial autho rity may decide" shall be inserted after the words "from the date of sub mission of the claim", appearing therein, and the following subsection shall be added thereafter: * Passed by the Knesset on the 1st Tammuz, 5736 (29th June, 1976) and published in Sefer Ha-Chukkim No. 819 of the 9th Tammuz, 5736 (7th July, 1976), p. 237; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1249 of 5736, p. 311. 1) Sefer Ha-Chukkim of 5720, p. 47 — LSI vol. XIV, p. 39; Sefer Ha-Chukkim of 5736, p. 91 — supra, p. 96. 2) Sefer Ha-Chukkim of 5714, p. 92 — LSI vol. VIII, p. 163; Sefer Ha-Chukkim of 5730, p. 125 — LSIvol XXIV, p. 129. 3) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120—NV vol. I, p. ,145; Sefer Ha-Chukkim of 5735, p. 168 —LSI vol. XXIX, p. 215. ** Passed by the Knesset on the 7th Tammuz, 5736 (5th July, 1976) and published in Sefer Ha-Chukkim No. 820 of the 17th Tammuz, 5736 (15th July, 1976), p. 240; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1143 of 5735, p. 12. .Sefer Ha-Chukkim of 5721, p. 192; L5/vol. XV, p. 214 (•׳ 234 "(b) Notwithstanding the provisions of subsection (a), a judicial authority which awards a sum of money to a party in respect of loss of earnings and future expenses shall award interest from the date of judgment if a lump sum is awarded and from the due date of each payment if periodical payments are awarded." 2. This Law shall apply also to proceedings pending before a judicial ^{j^jon authority on the day of its coming into force. 3. This Law shall come into force six months from the day of its Commencement, publication in Reshumot. YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State (No. 89) LEGAL ASSISTANCE TO FOREIGN STATES (AMENDMENT No. 3) LAW, 5736—1976* 1. Section 3 of the Legal Assistance to Foreign States Law, 5716— Amendment section 3 1956J), shall be re-marked as section 3 (a) and the following subsection shall be added thereafter: "(b) Where a court orders the taking of evidence under this sectiont it may, by the same order, prescribe that the evidence be taken be• fore the same court or before the registrar or, subject to such con• ditions and restrictions as it may see fit, before any person specified in the order who has agreed to take the evidence.". YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State * Passed by the Knesset on the 7th Tammuz, 5736 (5th July, 1976) and published in Sefer Ha-Chukkim No. 820 of the 17th Tammuz, 5736 (15th July, 1976), p. 240; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1177 of 5735, p. 229. 1) Sefer Ha-Chukkim of 5716, p. 91 — LSI vol. X, p. 93; Sefer Ha-Chukkim of 5732, p. 146— LSI vol. XXVI, p. 166; Sefer Ha-Chukkim of 5735, p. 16— LSI vol. XXIX, p. 23. 235 (No. 90) SAFETY IN PUBLIC PLACES (AMENDMENT) LAW, 5736—1976* Amendment of 1• 1° section 1 of the Safety in Public Places Law, 5723—19621), section 1. paragraph (1) shall be replaced by the following paragraph: "(1) a gathering of invited persons to which the general public is not admitted — except in a place used for ceremonies and festivities, even if this is not its only use — shall not be a meeting;". YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State (No. 91) CRIMINAL PROCEDURE (AMENDMENT No. 8) LAW, 5736— 1976** Replacement of 1. In the Criminal Procedure Law, 5725—1965 2) (hereinafter referred section 32. to as "the principal Law"), section 32 shall be replaced by the following section: "Jurisdiction as 32. (a) An application for the release on bail of an to release. arrested person against whom an information has not yet been filed shall be heard by a Magistrates' Court. Where an information has been filed, the application shall be heard by the court with which the information has been filed or, if the Judge or bench trying the case has begun to hear evidence, by that Judge or bench or by another Judge or bench of that court. * Passed by the Knesset on the 8th Tammuz, 5736 (6th July, 1976) and published in Sefer Ha-Chukkim No. 820 of the 19th Tammuz, 5736 (17th July, 1976), p. 241; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1169 of 5735, p. 176. 1) Sefer Ha-Chukkim of 5723, p. 2; LSI vol. XVII, p. 3. ** Passed by the Knesset on the 15th Tammuz, 5736 (13th July, 1976) and published in Sefer Ha-Chukkim No. 821 of the 24th Tammuz, 5736 (22nd July, 1976), p. 244; the Law is based on two Bills, published, respectively, in Hatza'ot Chok No. 1103 of 5734, p. 84, and Hatza'ot Chok No. 1183 of 5735, p. 290. 2) Sefer Ha-Chukkim of 5725, p. 161 — LSI vol. XIX, p. 158; Sefer Ha-Chukkim of 5729, p. 194 — LSI vol. XXIII, p. 210; Sefer Ha-Chukkim of 5733, p. 224 — LSI vol. XXVII, p. 249; Sefer Ha-Chukkim of 5734, p. 86 — LSI vol. XXVIII, p. 85; Sefer Ha-Chukkim of 5735, pp. 6, 76, 130 and 218 — LSI vol. XXIX, pp. 8, 95, 161 and 289. 236 (b) Where notice of appeal or an application for leave to appeal against a judgment has been filed, but the hearing of the appeal has not yet begun, the . application shall be heard by the court which gave the judgment or by the court of appeal. Where the hearing of the appeal has begun, the application shall be heard by the court of appeal.". 2. Section 47 of the principal Law shall be replaced by the following Replacement of section 47. section: "Release where 47. Where after the filing of the information against no trial is him an accused person has been under arrest in respect held. of that information for an aggregate period of sixty days and his trial has not begun, he shall be released from arrest.". 3. Section 48 of the principal Law shall be replaced by the following Replacement of section: section 48. "Release where 48. Where after the filing of an information against no judgment him an accused person has been under arrest in respect is given. of that information for an aggregate period of one year and his trial in the first instance has not been terminated by judgment, he shall be released from arrest.". 4. The following shall be inserted after section 74 of the principal Law: Addition of sections "Article Three "A": Inspection of Evidence of Experts for the 74Ato74C. Defence Definitions. 74A. In this article, "opinion" and "medical certificate" have the same respective meanings as in section 20 of the Evidence Ordinance (New Version), 5731—19711). Inspection of 74B. (a) The court with which an information in evidence respect of a felony or misdemeanour has been filed may, of experts for the defence. on the application of the prosecutor, order the accused or his defence counsel — (1) to enable the prosecutor to inspect at any reasonable time any written opinion or medical certificate which the accused intends to bring before the court as evidence; (2) to reduce to writing the essence of the evidence of an expert which the accused intends to have heard and to enable the (1 DineiMedinat Yisrael (Nusach Chadash) No. 18, p. 421; NVvo\. II, p. 198. 237 prosecutor to inspect it at any reasonable time; (3) to enable the prosecutor to copy docu ments as aforesaid. (b) Inspection shall be carried out in the pres ence of a person appointed by the accused or by his defence counsel for this purpose or in any other man ner prescribed by the court. (c) The time and place of inspection shall be as the court may prescribe, but it shall not take place before the accused or his defence counsel, on his appli cation, has been enabled to inspect the investigation material under Article Three. Restriction on 74C. Where an order made under section 74B has not production of been complied with in respect of any written opinion or evidence. medical certificate or the evidence of an expert, the ac cused shall not file such opinion or certificate with the court or have such evidence heard save with the consent of the prosecutor or the permission of the court.". Amendment of 5. Section 82 of the principal Law shall be re-marked as section 82 (a) :tj ^ f0uowing subsections shall be added thereafter״section . a "(b) The court may amend an information even if the offence dealt with by the amendment is within the jurisdiction of another court or of a bench with a different composition, but where it has done so it shall refer the matter to the other court or bench; it may, however,- continue to hear the matter if the offence is within the jurisdiction of a court whose powers are narrower. (c) A court to which a matter has been referred under subsection (b) may continue the hearing from the stage which its predecessor had reached; and it may, after giving the parties an opportunity to be heard on the matter, treat the whole or part of the evidence taken by its predecessor as if it had itself taken it or take it again.". Addition of 6. The following section shall be inserted after section 120 of the section 120 A. principal Law: "Trial in 120A. (a) A court is competent to direct that the absentia for whole or part of a hearing shall be in the absence of the health reasons. accused if his defence counsel so requests and the court is of the opinion that a hearing in the presence of the accused may injure his physical or mental health. 238 (b) A court hearing for the purpose of a decision under subsection (a) may be held in the absence of the accused, and it may be held in camera.". Amendment of 7. In section 136 of the principal Law — section 136. (1) in subsection (a), after the words "admissions as afore• said", there shall be inserted the words "If the accused answers in one of the aforesaid ways, the court may put questions to him, but it may only do so to the extent necessary for clarifying his answer."; (2) subsections (b) to (d) shall be re-marked as subsections (c) to (e) and the following section shall be inserted before them: "(b) The accused's refraining from answering the charge, or the questions of the court under subsection (a), may serve to add weight to the evidence of the prosecution. The court shall explain to the accused the effect of his so refraining.". Replacement of 8. Section 137 of the principal Law shall be replaced by the following section 137. section: "Withdrawal 137. (a) Where the accused has admitted a fact, either of admission. by written admission before the trial or in the course of the trial, he may at any stage of the trial withdraw the whole or part of the admission if the court permits him to do so for special reasons which shall be recorded. (b) Where the court permits the accused to withdraw his admission after the determination of the case, it shall quash the determination to the extent that it is based on the admission and shall resume the hearing if the circumstances so require.". 9. Section 145 of the principal Law shall be replaced by the following Replacement of section 145. section: "Alternatives 145. (a) The accused may — open to the accused. (1) testify as a witness for the defence, in which case he may be cross-examined; or (2) refrain from testifying. (b) The court shall explain to the accused that he may act as indicated in subsection (a) and the effect of his refraining from testifying under section 145A. (c) An accused person who elects to testify shall do so at the commencement of the evidence of the defence: Provided that the court may, on his applica• tion, permit him to testify at another stage of the case for the defence." 239 Addition of 10. The following section shall be inserted after section 145 of the section 145A. principal Law: "Silence of 145A. The accused's refraining from testifying may the accused serve to add.weight to the evidence of the prosecution, as well as to corroborate such evidence where it requires corroboration: Provided that it shall not serve as cor• roboration for the purposes of section 11 of the Law of Evidence (Protection of Children) (Revision) Law, 5715—19551)". Amendment of 11. In section 171 of the principal Law, the words "or make a statement section 171. without being examined" shall be inserted after the words: "as provided in section 145". Amendment of 12. In section 206 of the principal Law, the figure "74B" shall be section 206. inserted after the figure "13". YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State (No. 92) SMALL CLAIMS (JURISDICTION) LAW, 5736—1976* Small Claims 1• The Minister of Justice may empower a particular Magistrates' Courts. Court to sit as a Small Claims Court. Powers. 2. (a) A Small Claims Court shall hear a civil claim for the payment of an amount not exceeding 3,000 pounds and a counterclaim for an amount as aforesaid provided that the claims are not under the sole jurisdiction of another court. (b) The Small Claims 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. i) Sefer Ha-Chukkim of 5715, p. 96; LSI vol. IX, p. 102. * Passed by the Knesset on the 16th Tammuz, 5736 (13th July, 1976) and published in Sefer Ha-Chukkim No. 821 of the 24th Tammuz, 5736 (22nd July, 1976), p. 247; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1174 of 5735, p. 208. 240 (c) The Minister of Justice may, with the approval of the Con• stitution, Legislation and Juridical Committee of the Knesset, vary the amount stated in subsection (a). 3. The provisions of section 2 shall not prevent — Saving of (1) a party from filing a claim as mentioned therein in a r'8ht' 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. 4. (a) A Small Claims Court may admit evidence even if it would Procedure not be admissible in another court. This provision shall not derogate andeviden from the law as to the immunity of witnesses and privileged evidence. (b) A Small Claims Court shall not be bound by rules of pro• cedure obtaining in another court and, subject to rules of procedure made by the Minister of Justice for the purposes of this Law, shall act in such manner as seems to it most expedient for a just and speedy determination of the case. 5. The Minister of Justice may by procedural regulations prescribe a ?lace ?f place of jurisdiction for small calims, which shall be the place of jurisdic- Jur,sdictl tion notwithstanding the provisions of any agreement between the parties. 6. A party shall not be entitled to be represented before a Small Claims Representation. Court by an advocate or other agent, save with leave of the court and for special reasons which shall be recorded; but a party may, with leave of the court, be represented by an organisation designated for this purpose by the Minister of Justice with the approval of the Constitution, Legislation and Juridical Committee of the Knesset, and where a party is so repre• sented, the court shall also permit the opposing party to be represented before it. 7. A judgment of a Small Claims Court shall be appealable to a Dis- Appeal, trict Court by leave of a Judge of the District Court. The District Court shall hear the appeal by a single Judge. 8. (a) Where a claim is filed in a Small Claims Court, a Judge of the Arbitration, 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—1968except t) Sefer Ha-Chukkim of 5728, p. 184; LSI vol. XXII, p. 210. 241 sections 23 to 29 and 31 to 35 shall, as far as relevant, apply to arbitration under this section: Provided that — (1) the words "the court" shall, wherever occurring, be replaced by the words "a Judge of a Small Claims Court"*; (2) an award under this section shall, except as regards ap• peal, be treated as a judgment of a Small Claims Court. (c) This section shall not derogate from an arbitration agreement between the parties. Appointment 9. The Minister of Justice may, with the consent of the President of of Judge retired the Supreme Court, appoint a Judge retired on pension to carry out the on pension. functions of a Judge of a Small Claims Court for such period and on such conditions he may prescribe. A Judge appointed as aforesaid shall, when sitting, have the powers of a Judge of a Magistrates' Court. Implementation. If). The Minister of Justice is charged with the implementation of this Law. YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State (No. 93) BANKING ORDINANCE (AMENDMENT No. 11) LAW, 5736— 1976** Addition of 1• 1° tne Banking Ordinance, 19411)^ the following section shall be section 13A. inserted after section 13: "Joint account 13A. (a) Where a bank receives moneys or securities and joint or other negotiable instruments in a joint account in safe-deposit box. respect of which it has been stipulated with the bank that upon the death of one of the holders thereof the surviving holder or a person legally acting by his autho• rity shall be entitled to carry out operations in respect of * This modification necessitates certain obvious textual adjustments in the English version. (Tr.). ** Passed by the Knesset on the 15th Tammuz, 5736 (13th July, 1976) and published in Sefer Ha-Chukkim No. 821 of the 24th Tammuz, 5736 (22nd July, 1976),) p. 248; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1071 of 5733, p. 354. i) P.G. of 1941, Suppl. I, p. 85 (English Edition); Sefer Ha-Chukkim of 5736, p. 210 — supra, p. 208. 242 the said account, the stipulation shall, for the purposes of relations between the bank and the holders of the account, have effect also after such death. (b) The provisions of subsection (a) shall apply, mutatis mutandis, and without prejudice to the provi• sions of section 13 (b) of the Estate Duty Law, 5709— 1949 !), to a safe-deposit box let by a bank to two or more persons with the said stipulation.". 2. The provisions of section 13 A of the Banking Ordinance, 1941, Scope of shall apply whether the stipulation mentioned therein was made before aPPhcatl< or after the coming into force of this Law. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 94) STATE SERVICE (BENEFITS) (AMENDMENT No. 10) (AMENDMENT) LAW, 5736—1976* 1. Section 2 of the State Service (Benefits) (Amendment No. 10) Law, Amendment of 5736—19762), shall be re-marked as section 2 (a) and the following sub- section 2. section shall be added thereafter: "(b) The provisions of this Law shall, in respect of the time after the 23rd Kislev, 5736 (27th November, 1975), apply also to a person who retired from the State Service before the said date and to his survivors.". YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State 1) Sefer Ha-Chukkim of 5709, p. 187; LSI vol. Ill, p. 95. * Passed by the Knesset on the 15th Tammuz, 5736 (13th July, 1976) and published in Sefer Ha-Chukkim No. 821 of the 24th Tammuz, 5736 (22nd July, 1976), p. 249; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1249 of 5736, p. 312. 2) Sefer Ha-Chukkim of 5736, p. 10; supra, p. 6. 243 (No. 95) LOCAL AUTHORITIES (OBJECTION TO DETERMINATION OF GENERAL RATE) LAW, 5736—1976* Definitions. 1. In this Law — "local authority" means a municipality and a local council; "the council" means the council of a local authority. Director of 2. The council shall appoint one of its employees to be the Director General Rate. of General Rate for the purposes of this Law. Contestation. 3. A person charged with general rate may contest his liability before the Director of General Rate on one of the following grounds: (1) the property in respect of which the payment is de• manded is not situated in the area designated in the payment notice; (2) an error has occurred in the indication of the category, size or use of the property. Reply by 4. (a) The Director of General Rate shall reply to the contestor Director of within sixty days from the date of receipt of the contestation. General Rate. (b) Where the Director of General Rate does not reply within sixty days, he shall be deemed to have decided to allow the contestation unless within that period the objection committee referred to in section 5 extends the time for the reply for special reasons which shall be recorded. The period of extension shall not exceed sixty days. Objection 5. The council shall from among the persons qualified to be elected as committee. council members appoint one or several objection committees of three members and the chairman or chairmen thereof. Objection and 6. (a) A person who considers himself aggrieved by the reply of the appeal. Director of General Rate to his contestation may, within thirty days from the day on which the reply was delivered to him, object thereto before an objection committee. (b) The objector and the Director of General Rate may appeal to the District Court in the area of jurisdiction of which the area of the local authority is situated. The appeal shall be filed within thirty days from the date of delivery of the decision to the appellant. * Passed by the Knesset on the 21st Tammuz, 5736 (19th July, 1976) and published in Sefer Ha-Chukkim No. 822 of the 2nd Av, 5736 (29th July, 1976), p. 252; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1234 of 5736, p. 215. 244 (c) The District Court shall hear the appeal by a single judge and its judgment shall be final. 7. The Minister of Justice may by regulations prescribe the modes of Procedure in filing objection and appeal under this Law and the rules of procedure appeal!"1 ^ therein. 8. The Minister of the Interior is charged with the implementation of Implementation. this Law and may make regulations as to any matter relating to its imple• mentation. YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State (No. 96) PLANNING AND BUILDING (AMENDMENT No. 6) LAW, 5736—1976* 1. In the Planning and Building Law, 5725—19650, section 23 shall Jg^1^* be replaced by the following section : "Disqualification 23. A member of a Local Commission in any planning from voting. area snau not vote m anv oïner planning agency on any matter dealt with by or relating to that Commission.". YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State * Passed by the Knesset on the 21st Tammuz, 5736 (19th July, 1976) and published in Sefer Ha-Chukkim No. 822 of the 2nd Av, 5736 (29th July, 1976), p. 253; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1244 of 5736, p. 264. 1) Sefer Ha-Chukkim of 5725, p. 307 — LSI vol. XIX, p. 330; Sefer Ha-Chukkim of 5727, p. 10 — LSI vol. XXI, p. 8; Sefer Ha-Chukkim of 5729, pp. 172 and 223 — LSI vol. XXIII, pp. 119 and 243; Sefer Ha-Chukkim of 5733, p. 228 — LSI vol. XXVII, p. 254, Sefer Ha-Chukkim of 5736, p. 233; supra, p. 231. 245 (No. 97) PLANNING AND BUILDING (AMENDMENT No. 7) LAW, 5736—1976* Amendment of 1. In section 2 (b) of the Planning and Building Law, 5725—1965 J) — section 2. (1) in paragraph (2), the word "seven" shall be replaced by the word "eleven" ; (2) paragraph (7) shall be replaced by the following para• graph : "(7) the mayors of two other municipalities, the chair• men of three local councils not being regional councils, and the chairmen of two regional councils; the Minister of the Interior shall designate such municipalities, local councils and regional councils; (3) the following paragraphs shall be added after paragraph (12): "(13) a representative of the roof organisation of pub• lic bodies concerned with preserving the quality of the environment, appointed by the Minister of the Interior from a list of candidates submitted to him by that orga• nisation; (14) a representative of the young generation, appoint• ed by the Minister of the Interior in consultation with the bodies which in his opinion are concerned.". YITZCHAK RABIN YOSEF BURG Prime Minister Min ister of the Interior EFRAYIM KATZIR President of the State * Passed by the Knesset on the 21st Tammuz, 5736 (19th July, 1976) and published in Sefer Ha-Chukkim No. 822 of the 2nd Av, 5736 (29th July, 1976). p. 253; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1194 of 5732, p. 390. i) Sefer Ha-Chukkim of 5725, p. 307 — LSI vol. XIX, p. 330; Sefer Ha-Chukkim of 5727, p. 10 — LSI vol. XXI, p. 8; Sefer Ha-Chukkim of 5729, pp. 172 and 223 — LSI vol. XXIII, pp. 119 and 243; Sefer Ha-Chukkim of 5733, p. 228 — LSI vol. XXVII, p. 254; Sefer Ha-Chukkim of 5736, pp.233 and 253 — supra, p. 231 and 245. 246 (No. 98) EMPLOYMENT OF WOMEN (AMENDMENT No. 5) LAW, 5736—1976* 1. In section 7 of the Employment of Women Law, 5714—19541), the Amendment of section 7 following subsection shall be added after subsection (d) : "(e) (1) Without prejudice to the provisions of subsection (c) (1), a female worker may be absent from work, without deduction of pay, for the purpose of medical supervision during the . months of her pregnancy and routine medical examinations connected with pregnancy carried out at a mother-and-child health centre approved by the Minister of Health (hereinafter referred to as "the centre"), including routine examinations as aforesaid carried out outside of the centre upon referral by it. (2) The period of absence from work under paragraph (1) shall not exceed — (a) in the case of a female working more than four hours a day throughout the working week usual at her place of employment — 40 hours during the months of her pregnancy; (6) in the case of a female working up to four hours a day throughout the working week usual at her place of employment — 20 hours during the months of her pregnancy. (3) The Minister of Labour may, with the approval of the Labour Affairs Committee of the Knesset, prescribe by regu• lations — (a) provisions for the implementation of paragraphs (1) and (2); (b) in respect of categories of female workers and in areas defined by him — a different number of hours, but not less than that prescribed by paragraph (2), for absence as aforesaid; * Passed by the Knesset on the 22nd Tammuz, 5736 (20th July, 1976) and published in Sefer Ha-Chukkim No. 822 of the 2nd Av, 5736 (29th July, 1976), p. 254; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1237 of 5736, p. 224. 1) Sefer Ha-Chukkim of 5714, p. 154 — LSI vol. VIII, p. 128; Sefer Ha-Chukkim of 5723, p. 133 — LSI vol. XVII, p. 157; Sefer Ha-Chukkim of 5724, p. 166 — LSI vol. XVIII, p. 164; Sefer Ha-Chukkim of 5732, p. 119 — LSI vol. XXVI, p. 136; Sefer Ha-Chukkim of 5733, p. 260 — LSI vol. XXVU, p. 302. 247 (c) supplementary provisions as to the right of a fe• male working for more than one employer to be absent under paragraph (1) as if, for the purposes of para• graph (2), she worked for one employer.". YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State (No. 99) DENTISTS ORDINANCE (AMENDMENT No. 6) LAW, 5736—1976* Amendment of 1. In the Dentists Ordinance, 1945l) (hereinafter referred to as "the section 2. Ordinance"), the following shall be added at the end of section 2: ""endangering illness" means any of the following: (1) a mental illness; (2) an illness likely to endanger the health of the persons being treated by a person authorised to practise dentistry; (3) an illness or disability likely to incapacitate a person authorised to practise dentistry from practising the same permanently, temporarily or partly; "dental hygienist" means a person authorised under section 12 (2).". Anjendment of 2. In section 5 of the Ordinance, subsection (1) shall be replaced by the following subsections: "(1) A person who meets all the following requirements is entitled to receive a licence to practise dentistry (hereinafter referred to as "a licence"); (a) he is of good character; (b) he possesses a dental education; (c) he is an Israeli national or the holder of a permit of permanent residence or temporary residence in Israel. * Passed by the Knesset on the 22nd Tammuz, 5736 (20th July, 1976) and published in Sefer Ha-Chukkim No. 823 of the 3rd Av, 5736 (30th July, 1976), p. 256; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1203 of 5735, p. 439. 1) P.G. of 1945, Suppl. I, p. 1 (English Edition); Sefer Ha-Chukkim of 5711, p. 66 — LSI vol. V, p. 60; Sefer Ha-Chukkim of 5718, p. 104 — LSI vol. XII, p. 123; Sefer Ha-Chukkim of 5725, p. 54 — LSI vol. XIX, p. 52; Sefer Ha-Chukkim of 5728, p. 16 — LSI vol. XXII, p. 15; Sefer Ha-Chukkim of 5731, p. 68 — LSI vol. XXV, p. 64. 248 (2) The following are persons possessing a dental education for the purposes of subsection (1): (a) a person who holds a degree attesting to comple• tion of a course in dental surgery at a school of dental surgery in an institution of higher education in Israel recognised by the Council for Higher Education; (b) a person who has completed a course in dental surgery at a university or school of dental medicine of university standard abroad recognised by the Director and possesses a diploma so recognised. (2A) Licences shall be granted to the following persons even if they do not possess a dental education within the meaning of subsection (2): (a) a person who has studied for not less than three years in a pre-university standard school of dentistry abroad recognised by the Director and possesses a dip• loma so recognised, provided that he has attended a prescribed course in dentistry in Israel for at least one academic year and passed prescribed professional exa• minations ; (b) an immigrant to Israel who was authorised by permit to practise dentistry permanently in the state in which he actually practised, the same being attested by a public document validly issued in that state or an official gazette of that state, and who has attended a prescribed course in dentistry in Israel for a period of at least two academic years and passed prescribed pro• fessional examinations; (c) a person who meets all the requirements men• tioned in subsection (2B). (2B) Where a person does not meet the requirements specified in subsection (2A) (a) or (b), the Director shall refuse to admit him to a course in dentistry, but on the application of the applicant the Director shall refer the application for considera• tion by the advisory committee, which may, having regard to the applicant's training and to his de facto practice of den• tistry as his principal occupation, in a substantial way and to a substantial extent, prior to the publication of the Dentists Ordinance (Amendment No. 6) Law, 5736—1976, recommend grading and entrance examinations as a condition for his admission to a course, and thereafter he shall attend a pre• scribed course in dentistry in Israel for a period of at least two academic years and shall pass prescribed professional exa• minations. (2C) A dental practitioner holding a permit granted under this Ordinance who attended a prescribed course in dentistry in Israel for a period of at least two academic years and has passed prescribed professional examinations shall be entitled to receive a licence. This provision shall not derogate from the status of a dental practitioner holding a licence as afore• said to practise dentistry as a dental practitioner. (2D) A candidate who has failed the entrance examination to a course under subsections (2A) to (2C) or the examinations upon completing it shall be entitled to be examined one more time. (2E) An application for a licence shall be submitted to the Director. (2F) To satisfy himself of fulfilment of the requirements specified in this section, the Director shall only rely on public documents, within the meaning of the Evidence Ordinance (New Version), 5731—1971x), or, in the absence of such, on a declaratory judgment of a Magistrates' Court in Israel. (2G) (a) Where the applicant for a licence meets the re• quirements specified in subsections (1) and (2), the Di• rector shall grant him a licence. (b) Notwithstanding the provision of paragraph (a), where the Director is of the opinion that the grant of a licence to a person with a training as specified in sub• section (2) should be made conditional on examinations or supplementary training, he shall refer the application to the advisory committee established under section 5 A for an opinion. (c) Where an application is based on training as specified in subsection (2) and the Director is not satisfied that the applicant meets the requirements as to the said training, he shall refer the application to the advisory committee for an opinion. (d) If the advisory committee is satisfied that the ap• plicant meets the said requirements it shall recommend, the grant of a licence. (e) If the advisory committee is not satisfied that the applicant meets the said requirements it may recommend refusing the grant of a licence or granting a licence after the applicant has undergone examinations or sup• plementary training. Dinei Medinat Yisrael (Nusach Chadash) No. 18, p. 421; NV vol. II, p. 198. (2H) In this section, "prescribed" means prescribed by the Director by regulations in consultation with the Scientific Council of the Israel Dental Association or, in the absence of such a council, with whoever in the opinion of the Minister of Health carries out its functions.". 3. The following sections shall be inserted after section 5 of the Ordi• Addition of sections nance : 5Ato5P. "Advisory 5A. (a) For the purpose of the granting of licences, committee on the Minister of Health shall establish a committee of licences. three (hereinafter referred to as "the advisory com• mittee"), the members of which shall be a physician or dentist in the service of the Ministry of Health and two persons authorised to practise dentistry of whom at least one is a member of the teaching staff of a school of dental surgery in the grade of senior lecturer or above. The said two authorised persons shall be appointed by the Minister of Health from a list submitted to him by the Israel Dental Association; if the Association does not submit a list to him within two months from the date of receiving a request to do so, the Minister shall appoint such two persons authorised to practise den• tistry as he may think fit. (b) The Minister shall appoint the chairman of the committee from among the members thereof. (c) For each member of the advisory committee, the Minister shall appoint alternates in the same man• ner and on the same conditions as he appointed the member. (d) The Minister shall publish in Reshumot no• tice of the appointment of the members of the committee and their alternates. Period of tenure 5B. The period of tenure of a member of the advisory of member of committee shall be three years from the date of his committee. appointment and he may be reappointed, but he shall not serve for more than three consecutive periods. A member whose period of tenure has expired shall con• tinue to serve until the appointment of another member in his stead. Functions of 5C. The advisory committee shall hear every matter alternates. until its termination in the same composition in which it began to hear it; but the alternate of a member shall, 251 in accordance with the determination of the chairman, take that member's place — (1) if the member has resigned or died or is unable to carry out his functions; (2) if the member, being unable to carry out his functions temporarily or in respect of a particular applicant, so requests. Saving of 5D. The validity of the decisions of the advisory com• validity. mittee shall not be impaired by a vacancy in the place or a defect in the appointment or continuance in office of one of its members. Committee's 5E. (a) The advisory committee shall pass its deci• order of sions by a majority of the votes of its members. business. (b) The advisory committee shall itself pre• scribe the order of its business in so far as it is not prescribed by this Ordinance or by regulations there• under. Examination of 5F. (a) The advisory committee may invite an ap• qualifications. plicant to appear before it and obtain from him par• ticulars of his dental studies and his practical work. (b) The advisory committee shall not recom• mend refusing the grant of a licence unless the ap• plicant has been given an opportunity to appear before it and state his case. Medical board. 5G. (a) For the purpose of examining, in the cases indicated in sections 5H and 51, the mental or physical fitness of a person applying for a licence or authorised to practise dentistry, the Director shall appoint a board of three physicians (hereinafter referred to as "the medical board"). The appointment may be general or for a particular case. Where a question of mental fitness has arisen, the board shall consist of three psychiatrists. (b) For the purpose of an examination as afore• said, a medical board shall be competent — (1) to summon a person to appear before it and to testify or to produce any material; (2) to require a witness to testify on oath or affirmation in accordance with the pro• visions of the Civil Procedure Regulations, 5723—19631); 1) Kovetz Ha-Takkanot of 5723, p. 1879. (3) to apply to the District Court in the area of jurisdiction of which it is sitting for an order under section 13 of the Evidence Ordinance (New Version), 5731—1971); (4) to award travelling and lodging ex• penses and a loss-of-earnings allowance to a witness summoned by virtue of this section as if he were a witness summoned to testify in a court of law. (c) Where a person, having been requested by a medical board to testify or to produce any material, refuses to do so without giving a reason acceptable to the board, the District Court in the area of jurisdiction of which the board is sitting may, on the application of the Director or the chairman of the board, order that compliance with the directions of the board be enforced in such manner as it may think fit, including the arrest of the person so refusing. (d) The Minister of Justice shall prescribe rules of procedure for the implementation of this section. (e) The board shall submit to the Director its reasoned findings and conclusions. Medical 5H. (a) Where the Director has a reasonable sus• examination picion that a person applying for a licence is suffering of applicant. from an endangering illness, he may require him to appear before a medical board for examination. (b) Where the applicant refuses the Director's request, he shall not be granted a licence so long as he has not appeared and been examined. Medical 51. (a) Where it appears to the Director that the examination of holder of a licence is suffering from an endangering licence holder. illness, he may require him to appear before a medical board for examination. (b) The date set for appearance shall not precede the date prescribed for the filing of appeal under section 50 unless the Director is satisfied that the date of the medical examination should be advanced by reason of imminent danger to the public. (c) Where the holder of a licence does not ap• pear at the time and place prescribed under subsection (a), the Director may suspend his licence until he has been examined. 253 (d) The Director may publish notice of a sus• pension as aforesaid in any manner he thinks fit, and publication thereof in Reshumot shall not be required. Receipt of 5J. Before deciding, under section 5H or 51, as the evidence. case may be, to require an applicant for or holder of a licence to appear before a medical board under section 5G for examination, the Director may — (1) if he has reason to believe that in• formation likely to attest to that person's state of health is in the possession of a med• ical institution or physician which or who treated him, request that institution or phy• sician to deliver the information to him; (2) if he has reason to believe that a docu• ment likely to attest to that person's state of health is in the possession of another per• son, request that other person to deliver the document to him; and a person requested to deliver information or a document under this section shall comply with the re• quest. Interim 5K. (a) Where the Director is satisfied that an en• suspension. dangering illness of a person authorised to practise den• tistry creates such imminent danger to the public that it is inadvisable to await termination of proceedings before the medical board or in an appeal under section 5 O, he may suspend that person's licence pending a final decision under section 5M, but not for more than three months and on condition that he refers the matter to the medical board shortly after giving his decision. (b) Where the medical board has not completed the proceedings by the expiration of the period of sus• pension, the Director may, with the consent of the board, suspend the licence for another three months. (c) Where the proceedings have not been com• pleted by the expiration of the second aforesaid period, the Director may, with the consent of the board, sus• pend the licence for a further three months if the sus• pension is still urgently required. Duty of secrecy. 5L. A person who under the provisions of section 5G to 5J obtains any information concerning an illness shall keep it secret and may only disclose it to the extent 254 nesessary for the implementation of the said provisions, or if he has been authorised to do so by the court, or in fulfilment of a duty to answer questions put to him by a person empowered to conduct an investigation into the commission of offences. Implementation 5M. Where the medical board finds that the applicant of decision of for or holder of a licence is incapable of practising medical board. dentistry, permanently, partly or temporarily, owing to an endangering illness or that he is capable of practising dentistry subject to certain restrictions or conditions, the Director shall refuse to grant him a licence or shall cancel or suspend his licence, as the case may be, or shall grant him a special licence subject to the provisions of this Ordinance and in accordance with the recom• mendations of the medical board. Effect of special 5N. A special licence granted under section 5M shall licence. be treated as a licence in respect of the sphere of practice defined therein: Provided that a person who has re• ceived a special licence as aforesaid shall not practise dentistry save in accordance with the conditions recom• mended by the medical board. Appeal to Judge 5 O. (a) The applicant for or holder of a licence who of Supreme considers himself aggrieved by a request of the Director Court. to appear before a medical board, or any person who considers himself aggrieved by the Director's refusal to grant a licence or by the cancellation or suspension of a licence or by the grant of a special licence, all as pro• vided in sections 5H to 5M, may appeal to a Judge of the Supreme Court within thirty days from the day on which notice of the Director's request or decision was delivered to him. (b) Section 6 shall not apply to any of the grounds of appeal mentioned in subsection (a). (c) A decision of the Director to cancel or sus• pend a licence or to grant a special licence shall take effect immediately, and the filing of appeal shall not delay its taking effect unless a Judge of the Supreme Court otherwise orders. Provision as to 5P. The provisions of this Ordinance relating to licen• permits and ces and the holders thereof shall also apply, mutatis provisional permits. mutandis and subject to any special provision relating to the matter in question, to permits and temporary permits and the holders thereof.". 255 Addition of 4. The following section shall be inserted after section 6 of the Ordi• section 6A. nance : "Inspection of 6A. The Director may at any time require a person documents. authorised to practise dentistry to produce to him, with• in a reasonable time prescribed by the Director, the documents on the •basis of which his licence was granted him.". Amendment of 5. (a) In section g (1) of the Ordinance — section o. (1) the following paragraph shall be added after paragraph (e): "(f) without reasonable cause refuses to produce to the Director a document he has been required to produce under section 6A;"; (2) the closing passage and the proviso shall be replaced by the following: "the Minister of Health may, by order, cancel the licence or permit or suspend it for a period prescribed in the order or give the person authorised to practise dentistry a reprimand or warning.". (b) Section 8 (2) and (3) of the Ordinance shall be replaced by the following subsections: "(2) An order under subsection (a) shall only be made if the person complained against has been given an opportunity to submit a written defence and to be heard before a committee appointed by the Minister of Health either permanently or for a particular matter. The following provisions shall apply to this committee: (a) The committee shall consist of at least three per• sons, one of whom shall be the Director, one a represen• tative of the Attorney-General and one a person chosen from a list submitted by the organisation which, in the opinion of the Minister of Health, represents the great• est number of dentists and dental practitioners in Israel (such organisation hereinafter referred to as "the repre• sentative organisation"); (b) if the representative organisation does not sub• mit the list referred to in paragraph (a) within two months after being requested to submit it, the Minister of Health shall appoint such dentist or dental practi• tioner as he may see fit. 256 (3) (a) A committee under subsection (2) shall have the powers of a medical board under section 5G (b), and for this purpose the District Court may make an order as referred to in section 5G (3) on the application of the Director or the chairman of the committee. (b) The Minister of Justice shall prescribe rules of procedure for the implementation of this subsection. (c) The committee shall submit a written report to the Minister of Health. (d) For the purposes of this section, a person shall be deemed to have been given an opportunity to submit a written defence if thirty days before the making of the order under subsection (1) he was served, personally or by registered mail, with a notice indicating the nature of the complaint and the intention of taking one of the measures specified in subsection (1).". (c) In section 8 (4) of the Ordinance — (1) the words "or temporarily" shall be inserted after the word "permanently" in paragraph (a). (2) the following shall be added at the end: "(c) is applying for the cancellation of the licence or permit.". (d) In section 8 (6) of the Ordinance, the words "for cancellation or suspension" shall be deleted. 6. (a) In section 10 of the Ordinance, the following subsection shall Amendment of be inserted after subsection (2): section ia "(2A) A person authorised to practise dentistry shall not use the title or designation "doctor" or a specialist's title other• wise than in accordance with the provisions of this Ordinance or the regulations made thereunder.". (b) In section 10 of the Ordinance, the following subsection shall be inserted after subsection (3): "(4). The Director may permit a person not holding the academic degree of doctor of dentistry to use the designation "doctor" if he has completed a course in dental surgery at an institution of higher education and received a diploma recognised by the Director.". 7. The following section shall be inserted after section 10 of the Ordi- Addition of nance: section 10A. "Titles of 10A. The Minister of Health may, after consultation in branches W^ ^e *srae' Dental Association, by regulations — of dental surgery. 0) prescribe titles of specialists in branches of dental surgery for dentists who have 257 received their licences under section 5 (1) 1 • and (2); (2) prescribe conditions on which a den• tist is to be given approval for the use of such titles as aforesaid; (3) require applicants for approval of the use of any such title as aforesaid to undergo examinations and prescribe the form, pro• gramme and times thereof.". Amendment of 8. In section 12 of the Ordinance — section 12. (1) in subsection (1), the words "other than a dental hygie- nist acting under subsection (2)" shall be inserted after the words "but shall not permit any such person"; (2) subsection (2) shall be re-marked as subsection (3) and the following subsection shall be inserted after subsection (1): "(2) The Director-General may by regulations, after consultation with the Israel Dental Association and with the approval of the Public Services Committee of the Knesset — (a) define the qualifications and conditions of licens• ing of dental hygienists; (6) permit dental hygienists to carry out procedures connected with dental health education and oral and dental hygiene, including advice on such procedures, under the supervision of a person authorised to practise dentistry and according to conditions prescribed by regulations."; (3) in subsection (3) — (a) the words "other than procedures of a dental hygienist acting under subsection (2)" shall be inserted after the words "professional discretion and skill"; (b) the closing passage, beginning with the words "and his licence or permit" shall be replaced by the words "and section 8 shall apply to such conduct". Addition of The following section shall be inserted after section 14 of the Ordi• section 14A. nance: "Exemptions 14A. The Director may exempt the following from a from application provision of this Ordinance if he considers that it is in of Ordinance. their interest for him to do so: (1) persons certified by the Director as dental students, within the framework of their studies; (2) a dentist from abroad who has come to Israel to administer a particular treatment or for a particular medical consultation or for the demonstration of techniques in dentistry.". 10. In section 16 of the Ordinance — Amendments section 16. (1) in subsection (1), the closing passage, beginning with the words "is guilty of an offence", shall be replaced by the words "is liable to imprisonment for one year or a fine of 10,000 pounds"; (2) in subsection (2) — (a) before the words "or otherwise acts in contraven• tion of section 10", there shall be inserted the words "or without lawful authority uses the title or designation "doctor" or a specialist's title or a title so similar to either as to be misleading"; (b) the closing passage, beginning with the words "is guilty of an offence", shall be replaced by the words "is liable to imprisonment for three months"; (3) the following subsection shall be inserted after sub• section (2): "(2A) A person who contravenes the provisions of section 10 (2A) is liable to a fine of 2,000 pounds."; (4) in subsection (3), the closing passage, beginning with the words "is guilty of an offence", shall be replaced by the words "is liable to a fine of 2,000 pounds"; (5) in subsection (4) — (a) the words "or any regulations made thereunder" shall be inserted after the words "of this Ordinance"; (b) the closing passage, beginning with the words "is guilty of an offence", shall be replaced by the words "is liable to a fine of 2,000 pounds"; (6) the following subsection shall be added after subsection (5): "(6) (a) Where a person has been convicted of an offence under subsection (1), the court may, in addition to any other penalty it may impose, order the closing of the place in which the offence was committed. (b) An order under this subsection may direct the police or anyone authorised by the order to enter the place in respect of which the order is made and to 259 close it, and it shall be lawful to take any measures, in• cluding the reasonable use of such force as the circum• stances may require, in order to ensure compliance with the provisions of the order.". Addition of 11. The following section shall be inserted after section 17A of the section 17B. Ordinance: "Payments for 17B. The Minister of Health may prescribe by regula- and'C'Pati0n ^ons Pavments f°r participation in a course in dentistry examination fees. anc'> m consultation with the Minister of Finance, ex• amination fees for examinations under this Ordinance.". YITZCHAK RABIN VICTOR SHEMTOV Prime Minister Minister of Health EFRAYIM KATZIR President of the State (No. 100) COLLECTIVE AGREEMENTS (AMENDMENT No. 3) LAW, 5736—1976* Amendment of !. (a) Section 10 of the Collective Agreements Law, 5717—19571) (hereinafter referred to as "the principal Law") shall be re-marked as section 10 (a) and the words "Within three months" and "shall be sent", appearing therein, shall be respectively replaced by the words "within two months" and "shall be submitted". (b) The following subsections shall be added after subsection 10(a): "(b) The duty of submitting an instrument subject to regis• tration under subsection (a) shall apply to each of the parties thereto. Where one of them has submitted the instrument, the others are relieved of the duty. (c) The Chief Labour Relations Officer under the Settle• ment of Labour Disputes Law, 5717—19572), may extend the time stated in subsection (a) or section 10B (a) if he finds it justified to do so in the circumstances of the case. * Passed by the Knesset on the 22nd Tammuz, 5736 (20th July, 1976) and published in Sefer Ha-Chukkim No. 823 of the 3rd Av, 5736 (30th July, 1976), p. 264; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1244 of 5736, p. 261. 1) Sefer Ha-Chukkim of 5717, p. 63 — LSI vol. XI, p. 58; Sefer Ha-Chukkim of 5735, p. 223 — LSI vol. XXIX, p. 295; Sefer Ha-Chukkim of 5736, p. 138 — supra, p. 134. 2) Sefer Ha-Chukkim of 5717, p. 58; LSI vol. XI, p. 51. 260 (d) The Minister of Labour shal l,in the manner prescrib• ed by regulations, publish a notice of the submission for registration of an instrument subject to registration as aforesaid.". 2. In section 10A of the principal Law, the words "and an arrange• Amendment of ment notified under section 10B" shall be added at the end. section 10A. 3. The following section shall be inserted after section 10A of the Addition of principal Law: section 10B. "Duty of 10B. (a) An employer in a public service who em• notification, ploys one hundred or more employees shall notify the Minister of Labour or a person appointed by him in that behalf of any written arrangement, other than an instrument subject to registration under secton 10, dealing with wages or social conditions of all or a particular category of his employees, within two months from the date of the signing thereof. (b) The Minister of Labour may by order, with the approval of the Labour Affairs Committee of the Knesset, unconditionally or subject to conditions, ex• empt an employer or a particular category of em• ployers from the application of the provision of subsec• tion (a), generally or in respect of a particular arrange• ment or category of arrangements. (c) For the purposes of this section, "public service" means — (1) an inspected body, within the meaning of paragraphs (1) to (5) of section 9 of the State Comptroller Law (Consolidated Ver• sion), 5718—19581); (2) a body corporate established or re• cognised by a Law specific to it; (3) a body corporate the conduct of whose business is supervised or inspected under a Law specific to business of the kind con• ducted by it. (d) The Minister of Labour shall by regulations prescribe the mode of delivering a notification under subsection (a), the particulars to be included in it and the documents to be attached to it. (e) A person who contravenes any of the pro- 1) Se/erfia-C/i«fefamof5718,p.92;£,5/vol.XII,p. 107. 261 visions of this section or of an order made thereunder shall be liable to a fine of 10,000 pounds. (f) Where an offence under section (e) is com• mitted, there shall also be responsible for it the person who in his capacity as a manager or senior employee is responsible for compliance with the provisions of this section or of an order made thereunder or, where there is no such manager or senior employee, the person who signed the arrangement on behalf of the public service, unless he proves that he took reasonable steps to pre• vent the offence or that its commission was due to circumstances beyond his control.". YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State (No. 101) NATIONAL INSURANCE (AMENDMENT No. 22) LAW, 5736—1976* Amendment of 1• Ifl section 23 of the National Insurance Law (Consolidated Ver- section 23. sion), 5728—1968l) (hereinafter referred to as "the principal Law") — (1) in subsection (a), the words "otherwise than in conse• quence of remarriage" shall be inserted after the words "or whose right to a pension has ceased"; (2) in subsection (b), the following shall be added at the end: "and the Institute shall pay her a grant in two instal• ments, as stated hereunder: (1) after the date of her remarriage, an amount equal to a survivor's pension, calculated on the basis of the rate of the pension under section 21 (a) (1) (hereinafter referred to as "the rate of the pension") paid for the last month prior to the date of her remarriage, multi• plied by eighteen; * Passed by the Knesset on the 1st Av, 5736 (28th July, 1976) and published in Sefer Ha-Chukkim No. 824 of the 8th Av, 5736 (4th August, 1976), p. 268; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1241 of 5736, p. 250. 1) Sefer Ha-Chukkim of 5728, p. 108 — LSI vol. XXII, p. 114; Sefer Ha-Chukkim of 5736, p. 167 — supra, p. 165. 262 (2) upon the expiration of two years from the date of her remarriage, an amount equal to the rate of the pension which but for her remarriage would have been payable to her for the last month of the said two years, multiplied by eighteen.". 2. In section 27(a) of the principal Law, the words "two years" shall Amendment of section 27. be replaced by the words "five years" and the words "or the first instal• ment thereof" shall be inserted after the words "and the grant". 3. In section 77 of the principal Law, the words "otherwise than in Amendment of section 77. consequence of remarriage" shall be inserted after the words "or whose right to a pension has terminated in accordance with this article". 4. In section 78 (a) of the principal Law — Amendment of section 78. (1) the words "of the amount stated in section 77 (a)" shall be replaced by the following: "in two instalments, as stated hereunder: (1) after the date of her remarriage, an amount equal to a dependant's pension, calculated on the basis of the rate of the pension under section 76 (1) or (5) (herein• after referred to as "the rate of the pension") paid for the last month prior to the date of her remarriage, multiplied by eighteen; (2) upon the expiration of two years from the date of her remarriage, an amount equal to the rate of the pension which but for her remarriage would have been payable to her for the last month of the said two years, multiplied by eighteen;"; (2) the words "two years" shall be replaced by the words "five years" and the words "or the first instalment thereof" shall be inserted after the words "and the grant". 5. The provisions of sections 2 and 4 (2) shall apply also to a widow or Transitional widower whose second marriage had ceased by the date of the coming provision. into force of this Law after the expiration of two years but before the expiration of five years from the date of her or his remarriage or between whom and whose second spouse divorce proceedings were begun before a religious or civil court within the period of five years as aforesaid. YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State (No. 102) MAINTENANCE OF CLEANLINESS LAW, 5736—1976* Definitions. 1. In this Law — "waste" includes food remnants, peel, paper, bottles, boxes, tins, cartons, packages of any kind, scrap, pieces of wood, planks, rags, cigarette stubs and refuse of any description, as well as any thing 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 for repairs or alterations to buildings or in connec• tion with such work as aforesaid, and includes piles of earth and parts of wrecked buildings; "vehicle scrap" means chassis and parts of vehicles; "public domain" means any place which the public is permitted to use or cross over or actually uses or crosses over. Prohibition as 2. (a) A person who throws waste into the public domain or from to dirt and the public domain into the private domain or dirties the public domain disposal of waste. is liable to a fine of 1,000 pounds. (b) A person who throws building debris or vehicle scrap into the public domain or from the public domain into the private domain is liable to a fine of 5,000 pounds. (c) The Minister of the Interior may, with the approval of the Home Affairs and Ecology Committee of the Knesset, by order, vary the amounts of the fines mentioned in this section. Saving of laws. 3. The provisions of this Law are in addition to, and not in derogation of, the provisions of any other law. Implementation 4. The Minister of the Interior is charged with the implementation of and this Law and may make regulations as to any matter relating to its im• regulations. plementation, including the display in the public domain of warning signs concerning offences under this Law. YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State * Passed by the Knesset on the 28th Tammuz, 5736 (26th July, 1976) and published in Sefer Ha-Chukkim No. 824 of the 8th Av, 5736 (4th August, 1976), p. 269; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1234 of 5736, p. 214. 264 (No. 103) DEFENCE SERVICE (AMENDMENT No. 12) LAW, 5736—1976* 1. In section 16 (d) of the Defence Service Law (Consolidated Version), Amendment of 5719—19591X the words "Until the 1st Tishri, 5737 (25th September, section 16. 1976)" shall be replaced by the words "Until the 1st Tishri, 5740 (22nd September, 1979)". 2. This Law shall come into force on the 1st Tishri, 5737 (25th Commencement. September, 1976). YITZCHAK RABIN SHIMON PERES Prime Minister Minister of Defence EFRAYIM KATZIR President of the State (No. 104) LAND APPRECIATION TAX (TRANSITIONAL PROVISIONS) LAW, 5736—1976** 1. Where within one year from the date of publication of this Law a Exemption from real estate association files an application for the transfer of all its land appreciation rights in land by way of re-registration from the association to all the holders tax and of rights therein, in accordance with their rights on the date of the trans additional tax. fer, the association and the holders of rights therein shall be exempt from land appreciation tax and additional tax in respect of the transfer. 2. A transfer under section 1 shall not be regarded as income from Exemption from distribution of dividend, and the holders of rights in the association shall income tax. not be liable to income tax thereon. This provision shall only apply where since the establishment of the association it has had no property other than land, rights in real estate associations all the property of which is land, and compulsory loan, and has not sold land in a sale chargeable with income tax under section 2 (1) of the Income Tax Ordinance2). Passed by the Knesset on the 28th Tammuz, 5736 (26th July, 1976) and published ־ * in Sefer Ha-Chukkim No. 824 of the 8th Av, 5736 (4th August, 1976) p. 270; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1244 of5736,p.260. 1) Sefer Ha-Chukkim of 5719, p. 286 — LSI vol. XIII, p. 328; Sefer Ha-Chukkim of 5735, p. 78 — ¿57 vol. XXIX, p. 96. ** Passed by the Knesset on the 1st Av, 5736 (28th July, 1976) and published in Sefer Ha-Chukkim No. 825 of the 10th Av, 5736 (6th August, 1976), p. 272; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1244 of5736,p.264. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145. 265 Restriction. 3. Exemptions under sections 1 and 2 shall be granted on condition that within three months before the filing of application for the transfer or within six months after the transfer the association passes a resolution for its winding-up, or that it is struck off the Register of Companies in ac• cordance with section 242 of the Companies Ordinance1) within six months after the transfer. The Director of Land Appreciation Tax may extend the period for the striking-off of the association from the Register of Companies for six additional months if it has been proved to his satisfaction that the striking-off has not yet been carried out for reasons not depending on the association. Date of 4. The date of acquisition and acquisition value of a real estate right acquisition and acquisition value. obtained by re-registration under this Law shall be the date and value which would have been determined if the holder of the real estate right were liable to tax on an association act in respect of the association right in return for which the land was obtained: Provided that if the holder of the association right was the holder of the real estate right before its sale to the association, and the sale was exempt from tax, the acquisition value and date of acquisition of the right shall be the value and date at which the holder of the right originally acquired it. Special cases. 5. Where an association includes holders of rights not permitted to take part in general meetings and not entitled to participate in the distribution of its profits or in its surplus assets at the time of its winding-up, and no real estate rights are registered in their name upon registration of the transfer, the right to exemption under section 1 shall not for that reason be denied. Saving of 6. The provisions of this Law shall not derogate from the provisions validity. of section 71 of the Land Appreciation Tax Law, 5723—19632), or of the sections relating thereto. Transfer of 7. Where an association is wound up or is struck off the Register of compulsory Companies under section 3, the compulsory loans made by it shall be loan. registered in the name of holders of rights in it in the proportion of the real estate rights registered in their name. Interpretation. 8. In this Law, every term shall have the same meaning as it has in the Land Appreciation Tax Law, 5723—1963, or the Income Tax Ordinance, as the case may be. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State !) Laws of Palestine vol. I, p. 161 (English Edition). 2) Sefer Ha-Chukkim of 5723, p. 156 — LSI vol. XVII, p. 193. 266 (No. 105) STATE SERVICE (BENEFITS) (AMENDMENT No. 15) LAW, 5736—1976* 1. In section 31 of the State Service (Benefits) Law (Consolidated Amendment of Version), 5730—19701) — section 31. (1) in subsection (1), the words "she shall be paid a gratuity of an amount equal to the amount of the pension to which she was last entitled prior to her remarriage" shall be replaced by the words "she shall be paid, in accordance with the particulars set out in subsection (c), a gratuity of an amount equal to the amount of pension to which she would be entitled but for her remarriage"; (2) subsection (c) shall be replaced by the following sub• section: "(c) One half of the gratuity under this section shall be paid to the widow upon the filing of her application but not before her remarriage, calculated on the basis of the rate of pension to which she was last entitled be• fore her remarriage; the other half shall be paid to her upon the expiration of two years after her remarriage, calculated on the basis of the rate of pension which would be payable to her at that time had she not re• married.". (3) in subsection (d), the words "two years" shall wherever occurring be replaced by the words "five years". 2. Section 1 (3) shall, in respect of the period from the date of pub- Transitional , , provision, hcation of this Law, apply also to — (1) a widow whose second marriage was terminated before the date of publication of this Law but within five years from the day on which that marriage was concluded; (2) a widow whose second marriage was terminated in consequence of proceedings begun within five years from the day on which the marriage was concluded, whether they were * Passed by the Knesset on the 1st Av, 5736 (28th July, 1976) and published in Sefer Ha-Chukkim No. 825 of the 10th Av, 5736 (6th August, 1976), p. 273; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1244 of 5736, p. 265. 1) Sefer Ha-Chukkim of 5730, p. 65 — LSI vol. XXIV, p. 57; Sefer Ha-Chukkim of 5736, pp. 18, 97 and 163 — supra, pp. 15, 102 and 164. 267 begun before the date of publication of this Law or there• after; (3) a widow whose second marriage was concluded less than five years before the date of publication of this Law. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State (No. 106) EMERGENCY REGULATIONS (PROTECTION OF EDUCA• TIONAL INSTITUTIONS) (AMENDMENT AND EXTENSION OF VALIDITY) LAW, 5736—1976* Extension of 1. The validity of the Emergency Regulations (Protection of Educa- validity. tional institutions), 5734—19741) (hereinafter referred to as "the Regula• tions") as amended by this Law, is hereby extended until the 17th Elul, 5737 (31st August, 1977). Amendment of 2. In regulation 1 of the Regulations, in the definition of "institution", regulation 1. the words "a youth culture and sports centre, a boarding school and every other institution at which education is provided" shall be replaced by the words "a youth culture and sports centre, a boarding school, an institution of higher education and every other institution at which educa• tion is provided". Amendment of 3. Regulation 2 of the Regulations shall be re-marked as regulation (2) regulation2. (a) ancj tne f0uowing subregulation shall be added thereafter: "(b) The duty of protection service under this regulation — (1) may, if imposed on a student, other than a student at an institution of higher education, be required to be performed at an institution other than the one he attends; (2) shall not in respect of students at an institution of higher education be imposed on their parents.". * Passed by the Knesset on the 1st Av, 5736 (28th July, 1976) and published in Sefer Ha-Chukkim No. 825 of the 10th Av, 5736 (6th August, 1976), p. 274; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1251 of 5736, p. 338. i) Kovetz Ha-Takkanot 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, p. 174 — supra, p. 175. 268 4. In regulation 3 of the Regulations, the words "The principal" shall Amendment of be replaced by the words "The principal of the institution or a person section 3. empowered by him in that behalf". 5. Regulation 11 of the Regulations is hereby revoked. Revocation of regulation 11. 6. The Ministry of Education and Culture is charged with the imple- Implementation, mentation of this Law. 7. This Law shall come into force on the 5th Elul, 5736 (31st August, Commencement. 1976). YITZCHAK RABIN AHARON YADLIN Prime Minister Minister of Education and Culture EFRAYIM KATZIR President of the State (No. 107) BROADCASTING AUTHORITY (TEMPORARY PROVISION) LAW, 5736—1976* 1. The Managing Committee of the Broadcasting Authority may, with Addition to fee for receiving- the approval of the Minister empowered by the Government to imple• sets in 1976. ment the Broadcasting Authority Law, 5725—1965*), and with the ap• proval of the Finance Committee of the Knesset, impose an addition to the fee prescribed under section 29 of the said Law for the maintenance of a television receiving-set and a wireless receiving-set. The addition shall be joined to the second half-yearly payment for the year 1976 and shall form part thereof for all intents and purposes. 2. This Law shall come into force on the date of its adoption by the Commencement. Knesset. YITZCHAK RABIN AHARON YADLIN Prime Minister Minister of Education and Culture EFRAYIM KATZIR President of the State Passed by the Knesset on the 1st Av, 5736 (28th July, 1976) and published in Sefer Ha-Chukkim No. 825 of the 10th Av, 5736 (6th August, 1976), p. 274; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1255 of 5736, p. 358. Sefer Ha-Chukkim of 5725, p. 106; LSI vol. XIX, p. 103. 269 (No. 108) NATIONAL INSURANCE (AMENDMENT No. 23) LAW, 5736—1976* Amendment of 1• In section 91 of the National Insurance Law (Consolidated Ver- section91. sion), 5728—19681) (hereinafter referred to as "the principal Law"), the following definition shall be added after the definition of "delivery": ""vocational training" means vocational training or vocational rehabili• tation in accordance with criteria and conditions prescribed by regula• tions with the approval of the Labour Affairs Committee of the Knes• set.". Amendment of 2. In section 92 of the principal Law, subsection (b) shall be replaced section 92. ^e f0uowing subsection: "(b) A person insured for maternity allowance is one of the fol• lowing: (1) A woman, being an employee or self-employed person, who has completed her eighteenth year and who works in Israel or, if she and her employer are Israel residents and the contract of employment was entered into in Israel, even if she works outside Israel; (2) a woman who has completed her eighteenth year and is undergoing vocational training.". Amendment of 3. In section 98 of the principal Law — section 98. (1) in subsection (a), the expression "or 3" shall be deleted; (2) the following subsection shall be added after subsec• tion (b): "(c) A period in which a woman was insured under section 92 (b) (2) shall be regarded as a period in which contributions were paid for the purposes of subsection (a), provided that she worked, as an employee or self- employed person, for at least thirty consecutive days immediately before the day on which she stopped work• ing by reason of pregnancy or delivery.". * Passed by the Knesset on the 1st Av, 5736 (28th July, 1976) and published in Sefer Ha-Chukkim No. 825 of the 10th Av, 5736 (6th August, 1976), p. 275; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1244 of 5736, p. 263. 1) Sefer Ha-Chukkim of 5728, p. 108 — LSI vol. XXII, p. 114; Sefer Ha-Chukkim of 5736, pp. 167 and 268 — supra, pp. 165 and 262. 270 4. In section 101 (b) of the principal Law. the following paragraph Amendment of shall be added after paragraph (2): section 101. "(3) in the case of a woman insured under section 92 (b) (2) — the income which served as the basis for calculating the contributions for the quarter referred to in subsection (a).". 5. In section 102 of the principal Law, the following paragraph shall be Amendment of added after paragraph (3): section 102. "(4) with the approval of the Labour Affairs Committee of the Knesset — special provisions, either generally or in respect of particular classes of cases, as to the payment of maternity insurance contributions, including reduced contributions, in respect of every person undergoing vocational training, whether or not such person is insured under section 92 (b) (2), and such provisions shall have effect notwithstanding anything provided in Chapter Eight.". YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State (No. 109) NATIONAL INSURANCE (AMENDMENT No. 24) LAW, 5736—1976* 1. Section 26 C of the National Insurance Law (Consolidated Ver• Repeal of section 26C. sion), 5728—1968!) (hereinafter referred to as "the principal Law") is hereby repealed. 2. In section 29 of the principal Law — Amendment of section 29. (1) subsection (a) shall be replaced by the following sub section: "(a) Where a person who died in Israel or an Israel resident who died abroad has been buried in Israel, the Institute shall pay to the burial society, local authority * Passed by the Knesset on the 1st Av, 5736 (28th July, 1976) and published in Sefer Ha-Chukkim No. 825 of the 10th Av, 5736 (6th August, 1976), p. 276; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1254 of 5736, p. 354. 1) Sefer Ha-Chukkim of 5728, p. 108 — LSI vol. XXII, p. 114; Sefer Ha-Chukkim of 5736, pp. 167, 268 and 275 — supra, pp. 165, 262 and 270. 271 or other public institution, or to any person duly autho• rised to deal with burials, which or who dealt with the burial of the deceased, a funeral grant of such amount and in accordance with such conditions and criteria as the Minister shall prescribe in consultation with the Minister of Religious Affairs and with the approval of the Labour Affairs Committee of the Knesset."; (2) the following subsection shall be inserted after subsec* tion (b): "(c) A body licensed under section 13 of the Jewish Religious Services (Consolidated Version) Law, 5731— 1971 !), and the regulations made thereunder (such Law and such regulations hereinafter referred to as "the Religious Services Law") to deal with burials shall not in respect of a burial collect any payment, including service fees under the Religious Services Law, in ad• dition to a funeral grant under this section unless the payment has been permitted in accordance with the conditions and criteria prescribed by regulations under subsection (a).". Addition of 3. The following section shall be inserted after section 137B of the section 137C. principal Law: "Grant in the 137C. Where a person dies who was paid an old-age event of death. pension, a survivor's pension, a pension in respect of labour invalidity of a degree not less than 50 per cent, a dependant's pension under Chapter Three or an in• validity pension under Chapter Six "B" or a gratuity under Chapter Nine "A" and the regulations there• under instead of any of the said pensions, his spouse at the time of his death, or, in the absence of a spouse, his child, within the meaning of section 5, shall be paid a grant of an amount equal to the average wage.". Commencement. 4. This Law shall come into force on the 7th Tishri, 5736 (1st October, 1976). YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State i) Sefer Ha-Chukkim of 5731, p. 130; LSI vol. XXV, p.. 125. 272 (No. 110) ORNAMENTAL PLANTS PRODUCTION AND MARKETING BOARD LAW, 5736—1976* 1. In this Law — "the Board" means the Ornamental Plants Production and Market• ing Board established under section 2 ; "this Law" includes regulations and directions made or issued thereunder; "grower" means a person who grows ornamental plants for pur• poses of business, either himself or through others ; "ornamental plants" means the flowers and ornamental plants specified in the Schedule and includes reproductive material and any seed, sapling, branch, bud and bulb and any part thereof, whether fresh or treated or dyed or preserved; every other term shall have the same meaning as it has in the Fruit Pro• duction and Marketing Board Law, 5733—19731X (hereinafter referred to as "the Fruit Law"), save as otherwise provided in this Law. 2. (a) Within six months from the date of publication of this Law, Establishment the Mini sters shall appoint an Ornamental Plants Production and Market- of Board• ¡ng Board. (b) So long as the Ministers have not appointed a Board under subsection (a), the company limited by shares registered as the Flowers, Buds and Ornamental Plants Production and Marketing Board shall to all intents and purposes be regarded as a Board established under this Law. 3. (a) The Board shall be the sole exporter of ornamental plants. Authorised exporters. (b) Notwithstanding the provision of subsection (a), the Exec• utive of the Board (hereinafter referred to as "the Executive") shall, with the approval of the competent authority for export licences at the Min• istry of Agriculture, authorise a person applying therefor to be an ex• porter of a particular species or variety of ornamental plants (hereinafter referred to as an "authorised exporter"). Authorisation as aforesaid may * Passed by the Knesset on the 1st Av, 5736 (28th July, 1976) and published in Sefer Ha-Chukkim No. 825 of the 10th Av, 5736 (6th August, 1976), p. 277; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1148 of 5735, p. 39. 1) Sefer Ha-Chukkim of 5733, p. 310; LSI vol. XXVII, p. 370. 273 only be granted in accordance with rules prescribed by the Board with the approval of the Ministers and the Economic Committee of the Knesset. Rules as aforesaid shall be submitted for the approval of the Economic Committee within six months from the date of appointment of the Board under section 2 (a). (c) The provisions of subsections (a) and (b) shall not affect the right of a person who within five years before the adoption of this Law by the Knesset lawfully carried on the business of exporting a particular ornamental plant, in whatever quantity, to continue doing so, and the Executive shall authorise him to be an authorised exporter of that or• namental plant. (d) An authorised exporter shall act in accordance with conditions prescribed by the Board by rules with the approval of the Ministers and the Economic Committee of the Knesset. Application 4. (a) The provisions of the Fruit Law shall, with the modifications of Fruit Law. and adjustments required by the subject-matter and save as otherwise provided by this Law, apply — • (1) to the Board under this Law; (2) to ornamental plants, to every grower and to every person whose business is the production or marketing of ornamental plants or any other activity relating thereto. (b) The Ministers or a person appointed by them in that behalf shall bring the modifications and adjustments required by the subject- matter as aforesaid to the knowledge of the Economic Committee of the Knesset. Adaptation 5. The Ministers may with the approval of the Economic Committee of provisions. of the Knesset, if they consider it necessary so to do, adapt the provi• sions of the Fruit Law to the structure or requirements of the Board or, in the interests of the community of growers or for the implementation of Government policy, direct by regulations — (1) that all or part of the provisions of the Fruit Law shall apply on such conditions and with such modifications as they may prescribe; (2) that a provision of the Fruit Law shall not apply. Implementation. 6. The Ministers are charged with the implementation of this Law and may, with the approval of the Economic Committee of the Knesset, make regulations as to any matter relating to such implementation. 274 SCHEDULE (Section 1) Agaratum Tagetes Waxflower Thrift Dracaena Martynia Spurge Yucca Royal poinciana Hog's ear Cotton Carnation, pink Eucalyptus Anemone Cat's foot Iris Albizzia Cordelina Yarrow Snapdragon Casuarina Alstroemeria Melaleuka Cactus (different Anthurium Stock species) Pineapple Buttercup Codiaeum Aster Star-of-Bethlehem Cyclamen Foxglove Nerine Acacia Araucaria Narcissus Fern Brodiaea Jacaranda Lily Gypsophila Gladiolus Ornamental maize Gerbera Ornamental Bluebottle tomato Helipterum Pampas grass . Rose Pittosperum Chrysanthemum Ficus (No. Ill) PUBLIC BODIES (TRANSACTIONS) (ENFORCEMENT OF BOOKKEEPING) LAW, 5736—1976* 1. In this Law— Definitions. "sale", "property", "service", "transaction" and "value of transac• tion" have the same meanings as in the Value-Added Tax Law, 5736—19751); "resident in Israel" has the same meaning as in the Income Tax Ordinance2); * Passed by the Knesset on the 7th Av, 5736 (3rd August, 1976) and published in Sefer Ha-Chukkim No. 826 of the 17th Av, 5736 (13th August, 1976), p. 280; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1257 of 5736, p. 364. t) Sefer Ha-Chukkim of 5736, p. 52; supra, p. 46. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145. 275 "public body" means any of the following: (1) the State; (2) a local authority; (3) a Government company, within the meaning of the Government Companies Law, 5735—19751); (4) a body corporate established by Law; "authorised officer" means any of the following: (1) the Assessing Officer or one of his subordinates, ap• pointed by him; (2) for the purposes only of the Value-Added Tax Law, 5736—1976 — the Director of Customs and Excise or one of his subordinates, appointed by him. Book-keeping 2. (a) A public body shall not enter into a transaction with a resi• certificate a dent in Israel for the sale of any property or the giving of any service to condition for transactions with that public body until the person who represents that public body with public body. regard to that transaction has been furnished with a certificate, or a copy of a certificate, from an authorised officer or an auditor, attesting that such resident keeps the account-books and records required to be kept under the Income Tax Ordinance or the Value-Added Tax Law, 5736— 1975, or that he is exempt from keeping them. (b) This section shall not apply where the value of the transaction does not exceed an amount prescribed by the Minister of Finance with the approval of the Finance Committee of the Knesset. Disciplinary 3. The responsibility of the person who represents the public body responsibility. with regard to a transaction for compliance with the provisions of sec• tion 2 shall only be disciplinary and a failure on his part to fulfil his duty shall not impair the validity of the transaction. Implementation 4. The Minister of Finance is charged with the implementation of this and regulations. Law and may make regulations for its implementation, including regula• tions as to the time for which a certificate issued under section 2 shall be in force and as to the making of a copy of such a certificate.. Commencement. 5. This Law shall come into force on the 8th Cheshvan, 5737 (1st November, 1976). YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State i) Sefer Ha-Chukkim of 5735, p. .132; LSI vol. XXDC, p. 162. 276 (No; 112) ENOURAGEMENT OF CAPITAL INVESTMENTS (AMENDMENT No. 14) LAW, 5736—1976* 1. In section 3 (3) of the Encouragement of Capital Investments Law, Amendment of section 3. 5719—19591) (hereinafter referred to as "the principal Law"), the words "by a non-resident" shall be inserted after the word "investment" in the two places in which it occurs. 2. At the end of section 4 of the principal Law, there shall be added the Amendment of section 4. words "and shall prescribe guiding rules for the attainment of its object; such rules shall be published". 3. Section 9 of the principal Law shall be replaced by the following Replacement of section 9 and sections: addition of "Board. 9. (a) The Board shall, in addition to the Director, section 9A. include the following members: (1) the Director of the Investment Autho• rity; (2) a representative of the Minister of Fi• nance, appointed by the Government; (3) a representative of the Minister of Commerce and Industry, appointed by the Government; (4) a representative of the Ministry of Agriculture; and the Government may appoint a representative of the public to be an additional member of the Board. (b) When the votes on the Board are evenly divided, the Director shall have a casting vote. * Passed by the Knesset on the 29th Tammuz, 5736 (27th July, 1976) and published in Sefer Ha-Chukkim No. 827 of the 27th Av, 5736 (23rd August, 1976), p. 284; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1245 of5736,p.269. 1) Sefer Ha-Chukkim of 5719, p. 234 — LSI vol. XIII, p. 258; Sefer Ha-Chukkim of 5721, p. 78 — LSI vol. XV, p. 73; Sefer Ha-Chukkim of 5723, p. 14 — LSI vol. XVII, p. 17; Sefer Ha-Chukkim of 5725, p. 39 — LSI vol. XIX, p. 39; Sefer Ha-Chukkim of 5727, p. 62 — LSI vol. XXI, p. 61 ; Sefer Ha-Chukkim of 5728, p. 36 — LSI vol. XXII, p. 33; Sefer Ha-Chukkim of 5729, p. 242 — LSI vol. XXIII, p. 267; Sefer Ha-Chukkim of 5730, p. 152 — LSI vol. XXIV, p. 159; Sefer Ha-Chukkim of 5731, p. 30 — LSI vol. XXV, p. 20; Sefer Ha-Chukkim of 5734, pp. 16 amd 108 — LSI vol. XXVIII, pp. 16 and 113; Sefer Ha-Chukkim of 5735, pp. 83, 150 and 166 — LSI vol. XXIX, pp. 103, 188 and 213. 277 (c) The members of the Board shall also be members of the Council. Non-permanent 9A. For the purposes of the approval of a project the members of subject-matter of which is within the province of a the Board. Government Ministry not represented on the Board, a representative of that Ministry, appointed by the Min• ister in charge thereof, shall be an additional member of the Board.". Amendment of 4. (a) Section 18 of the principal Law shall be re-marked as section section 18. 18(a) and the words "until the 25th Adar, 5741 (31st March, 1981)" shall be inserted after the word "approve", appearing therein. (b)' The following subsection shall be added after section 18 (a): "(b) Where the Board has not approved a project submitted to it or part thereof, it shall notify the applicant of its reasons in writing.". Replacement of 5. Section 19A of the principal Law shall be replaced by the following section 19A. section: "Approval by 19A. (a) The Board may prescribe directives and Director in conditions for the approval or alteration of classes of accordance with directives. projects, other than projects the subject-matter of which is the establishment or enlargement of an enterprise, and upon its doing so the Director may, after satisfying himself that the directives and conditions have been complied with, and with the consent of the representa• tive of the Ministry within whose province the subject- matter of the project falls — (1) approve a project or (2) approve the alteration of an approved project: Provided that he shall not grant approval under this subsection for a project the subject-matter of which is an investment of capital in Israel in foreign currency unless the Controller of Foreign Exchange has con• sented thereto. (b) v For the purposes of approval under sub• section (a), the Director shall have the powers vested in the Board under section 19, and the approval shall be treated as an approval under section 18. (c) Where the Director does not see fit to ap• prove a project, he shall return it to the Board for con• sideration.". 278 6. In section 21 of the principal Law, in paragraph (1), the words "an Amendment of equipment rental enterprise" shall be inserted after the words "an ap• section 21. proved enterprise". 7. In section 22 of the principal Law, the words "and a cooperative Amendment of section 22. society" shall be replaced by the words "or by a partnership registered in Israel as a limited foreign partnership or by a cooperative society", and the word "company" in the marginal note shall be replaced by the words "body corporate". 8. In section 25 of the principal Law — Amendment of section 25. (1) in subsection (a), the words "under section 85" shall be replaced by the words "under section 19A, 75A, 75B(a) or 85"; (2) subsection (b) shall be replaced by the following sub• section : "(b) The objection shall be submitted to a committee of five members appointed by the Ministers who may be members of the Council other than the Director and the.members of the Board, provided that at least two shall be representatives of the public. The Committee shall deal with an objection with the participation of the Director and shall communicate its opinion to the Ministers.". In section 25A of the principal Law — Amendment of section 25A. (1) in subsection (1), the words "within 60 days from the day on which notice of the decision is given to the appellant" shall be inserted after the words "the District Court"; (2) subsection (b) shall be replaced by the following sub" section: "(b) A decision of the District Court under subsection (a) shall be appealable on a point of law.". 10. In section 40A of the principal Law — Amendment of section 40A. (1) the following definition shall be inserted after the defini• tion of "property of the enterprise": ""rental equipment" means machinery and other equipment — except a private motor vehicle within the meaning of the Traffic Ordinance!) — owned by an equipment rental enterprise and, ac- i) Dinei Medinat Yisrael (Nusach Chadash) No. 7, p. 173; NV vol. I, p. 222. 279 bbrding to its approved project, intended to be let to approved or recognised enterprises, it having been proved to the Director — (1) that they were first let to an approved or recognised enterprise before the expiration of the period for the implementation of the project, as fixed in the instrument of approval of that enterprise, and 'hat, if they were owned by that enterprise, it would be entitled to an investment grant in respect thereof; (2) that the letting is in accordance with the conditions of ap• proval of the equipment rental enterprise; (3) that the instrument of approval of the lessee enterprise indi• cates that it will rent machinery or equipment of the kind now rented by it; (4) that the machinery or equipment was not sold, let or lent before being first let as specified in paragraph (1) and that if it was brought to Israel for this purpose in used condition with the ap• proval of the Board, it has not previously been used in Israel;"; (2) in the definition of "industrial building", paragraphs (2) and (3) shall be replaced by the following paragraphs: "(2) the whole of it or the main part of its area, in the pro• portion prescribed in the instrument of approval, will be first let to an approved enterprise, being an industrial enterprise the project of which, approved less than eight years ago, includes the renting of a building as aforesaid; (3) the letting will take place within the period prescribed in the instrument of approval; (4) the building, or part thereof, to be let as aforesaid, will not be sold or let* before being first let as aforesaid;"; (3) the following definition shall be added at the end; "grant"** means an investment grant and an export grant". Amendment of In section 40B of the principal Law — section 40B. (1) the marginal note shall be amended to read "Right to investment grant"; (2) the words "to a grant" in the opening passage shall be replaced by the words "to an investment grant"; The Hebrew text uses two terras, meaning, respectively, letting for more and for not more than five years — Tr. The rendering "grant in-aid" used until now in this translation of the Law should wherever occurring therein be replaced by "grant" (Tr.). 280 (3) in paragraph (1), the words "or equipment rental enter prise" shall be inserted after the words "or industrial enter prise", and the words "the Minister of Finance, the Minister of Commerce and Industry and the Minister of Development" shall be replaced by the words "the Ministers"; (4) in paragraph (2), the words "machinery or equipment" shall be replaced by the words "earmarked goods" and the following shall be added at the end: "or who has manufac tured as property of the enterprise any goods as aforesaid: Provided that the Ministers may prescribe by order as aforesaid that the grant shall only be given in respect of machinery or equipment specified by them or may specify machinery or equipment in respect of which a grant shall not be given"; (5) the following paragraph shall be added after paragraph (2): "(3) the owner of an equipment rental enterprise who has acquired or manufactured rental equipment being earmarked goods within the meaning of section 62 (a).". Amendment of section 40C. 12. In section 40C of the principal Law — (1) the marginal note shall be amended to read "Rate of investment grant"; (2) the following shall be added at the end of paragraph (1) of subsection (a): "and its rate may be different in respect of each of the zones mentioned in the Schedule; in the case of an equipment rental enterprise, it shall be a percentage specified in the Schedule of the original cost of the rental equipment, in accordance with the zone in which the approved enterprise which first rented it is situated"; ־in subsection (b), the expression "or (3)" shall be in (3) serted after the expression "under section 40B (2)"; (4) the following subsection shall be added after subsec tion (b): "(c) Notwithstanding the provisions of subsections (a) (1) and (b), a grant in respect of exempted goods referred to in section 62 (a) manufactured by the owner of the enterprise shall be a percentage specified in the Schedule of the smaller of the following two amounts: 281 (1) the cost price with the addition of a reason• able profit, such profit not to exceed 15 per cent of the cost price; (2) the price payable by a willing purchaser to a willing seller for similar machinery or equipment manufactured in Israel or, in the absence of local manufacture or of a price as aforesaid, the import price of similar machinery or equipment; in the case of rental equipment as aforesaid, the percen• tage shall be in accordance with the zone in which the enterprise which rented it is situated.". Addition of 13. Sections 40E to 40G of the principal Law shall be re-marked as sec- sections, tions 40G to 401 and the following sections shall be inserted before them: "Right to an 40E. The owner of an approved enterprise, being an export grant. industrial enterprise exporting any of its products either itself or through another on its behalf, shall be entitled to an export grant from the State, provided that where the enterprise is a mine or some other enterprise for the extraction of minerals or an enterprise for the proces• sing of minerals extracted in Israel the grant shall re• quire the approval of the Ministers. Rate of export 40F. (a) An export grant shall be given in accordance grant. with the consideration received for the export in foreign currency lawfully converted into Israeli currency or deposited in a Pazak account or, where the entitlement relates to part of the enterprise, in accordance with the consideration received as aforesaid for the additional export. The grant shall be a percentage of the considera• tion as aforesaid or shall be calculated at a rate prescrib• ed by the Ministers with the approval of the Finance Committee of the Knesset or on some other basis prescribed by the Ministers with approval as aforesaid: and they may prescribe different rates or different amounts according to different export branches and according to the zone in which the enterprise is situated: Provided that the total amount of the grant shall not exceed 24 per cent of the value of the following invest• ments, as recognised by the Director: (1) investments in the property of the enterprise, with the addition of the expendi• ture incurred by the owner of the enterprise in respect of land development; 282 (2) in respect of a science-based industrial enterprise — also investments in research and development in accordance with the approved project; for this purpose, "science- based enterprise" and "investments in re• search and development" shall have the meanings assigned by the Ministers; (3) in respect of an enterprise which has rented rental equipment or an industrial building — also the lessor's investment in the equipment or building, including the expenditure incurred by him in respect of land development. (b) A grant under subsection (a) shall be given in annual instalments in four of the seven years beginn• ing with the first year of the operation of the enterprise or, in the case of the enlargement of an enterprise, beginn• ing with the first year of the operation of the part thereof entitling to the grant, all in accordance with the volume of the exports; but where entitlement to part of the grant does not accrue in the aforesaid four years, such part may be received in an additional year out of the seven years. (c) The Ministers shall prescribe rules as to the annual instalments for the payment of the grant, the conditions for carrying over a right to a grant not utilised during the four years to an additional year and the meaning of "additional export.". 14. Section 40G of the principal Law shall be replaced by the following Replacement of section: section 40G. "Security. 40G. A grant, other than an export grant, shall be given after security has been provided, to the satisfac• tion of the Director, to ensure its return under section 75B.". 15. Section 40H of the principal Law shall be replaced by the following Replacement of section: section 40H. "Date of 40H. (a) An investment grant, except any part thereof payment of grant. of which payment has been deferred under section 401, shall be paid not later than sixty days after the date on which the owner of the enterprise has proved, to the satisfaction of the Director, that he has disbursed the expenditure involved in the acquisition or manufacture 283 of the property of the enterprise or of the rental equip• ment and, in the case of manufacture, also the price referred to in section 40C (c), as well as the expenditure involved in land development and the construction of a building; but where the coming into force of the ap• proval has been made subject to a condition, the grant shall be paid within sixty days from the date on which the approval comes into force or within the time pre• scribed by this subsection, whichever period ends later. (b) The time for the payment of an export grant shall be prescribed by the Ministers with the approval of the Economic Committee of the Knesset.". Amendment of 16. In section 401 of the principal Law, after the words "the security section 401. required for giving the grant", there shall be inserted the words "the deferment of payment of part of the grant, not exceeding a proportion thereof prescribed by the Ministers with the approval of the Finance Committee of the Knesset". Addition of 17. The following section shall be inserted after section 401 of the section 40J. principal Law: "Prevention of 40J. A grant shall not be paid more than once in double grant. respect of any particular property.". Replacement of 18. Section 43A of the principal Law shall be replaced by the following section 43 A. section: "Depreciation 43A. Where the owner of an approved enterprise has and exemption in respect of received an investment grant in respect of expenditure land develop• for land development, then, for the purposes of de• ment grant. preciation under any law, the amount of the grant shall be deducted from the original cost of the- building standing on the land or of any other property with which the said expenditure is connected. The grant shall be exempt from income tax.". Amendment of 19. In section 45 of the principal Law — section 45. (1) in the opening passage, the words "a project approved by the 29th Adar Bet, 5736 (31st March, 1976)" shall be replaced by the words "an approved project"; (2) in paragraph (1), after the words "beginning with the year in which there was for the first time a chargeable income", there shall be inserted the words "or, in the case of an ap• proved investment in an approved enterprise, for the purposes of benefits under section 46, beginning with the year in which there was for the first time an income from such investment". 284 20. Section 47 of the principal Law shall be replaced by the following Replacement of section: section 47. "Tax on income 47. (a) A company which owns an approved enter- from approved prjse snau be liable to company tax on its chargeable enterprise : j • j r ! ,. • during period income derived from such enterprise — of benefits. if the enterprise was approved not later than the 2nd Elul, 5730 (3rd September, 1970) — at a rate not exceeding 28 per cent of such income; (2) if the enterprise was approved after the date mentioned in paragraph (1) but not later than the 29th Adar Bet, 5736 (31st March, 1976) — at a rate not exceeding 33 per cent of such income; (3) if the enterprise was approved after the date mentioned in paragraph (2) — at a rate not exceeding 40 per cent of such income; and it shall be exempt from any other tax thereon. (b) (1) Where a person has received dividend paid out of income specified in subsection (a) (1) or (2) which was derived in or after the tax year 1958, he shall be exempt from any tax thereon additional to the tax paid by the company, and the same shall also apply to investment yields paid by a company out of dividend as aforesaid. (2) Where a person has received dividend paid out of income specified in subsection (a) (3), he shall be liable to income tax there• on at the rate of 15 per cent, and the same shall also apply to investment yields paid by a company out of dividend as aforesaid. (c) An individual or kibbutz who or which owns an approved enterprise shall be liable to income tax on his or its chargeable income derived from the ap• proved enterprise — (1) if the enterprise was approved not later than the 29th Adar Bet, 5736 (31st March, 1976) — at the rate of 25 per cent; (2) if the enterprise was approved after the date mentioned in paragraph (1) — at the rate of 40 per cent; 285 and he or it shall be exempt from any other tax there- on. . Amendment of 21. (a) Section 55 of the principal Law shall be re-marked as section section 55. 55 ^ paragraph (4) thereof shall be re-marked as paragraph (5) and the following paragraph shall be inserted before paragraph (5): "(4) that it is property which that person brought with him on coming to Israel or after he became a resident of Israel but during the period in which he was exempt from the duty of offering foreign currency to the Minister of Finance for sale under the enactments mentioned in paragraphs (1) and (2), if it is proved that the property was owned by him immediately before he became a resident of Israel;". (b) The following subsection shall be added after subsection (a): "(b) For the purposes of this section, the periods referred to in the. enactments mentioned in paragraphs (1) and (2) of subsection (a) shall be as obtaining at the time of the investment, transfer, or bringing, as the case may be. (c) In this section, "foreign currency" includes currency referred to in section 56 (2)". Addition of 22. The following shall be inserted after section 55 of the principal Law : Chapter Eight "B". "Chapter Eight "B": Benefits as to Employers' Tax Definitions. 55A.. In this chapter, every term shall have the same meaning as it has in the Employers' Tax Law, 5735— 19751). Exemption from 55B. An employer being an approved enterprise which and reduction is an industrial enterprise in the zone designated as of employers' tax. Development Zone "A" shall be exempt from em• ployers' tax, and an employer being an enterprise as aforesaid in the zone designated as Development Zone "B" shall be liable to half the tax. Period of 55C. Benefits under this chapter shall be granted — benefits. (1) to an approved enterprise put into operation before the 1st Nisan, 5736 (1st April, 1976) and to a mixed enterprise of which the approved part, within the mean• ing of section 74, was put into operation before the said day — until the expiration i) Sefer Ha-Chukkim of 5735, p. 118; LSI vol. XXIX, p. 152. 286 of five years beginning with the year after the year of its being put into operation; (2) to enterprises as aforesaid put into operation after the 29th Adar Bet, 5736 (31st March, 1976) — for the period beginning with the month of the putting into operation and ending upon the expiration of five years from the year after the putting into ope ration.". 23. At the end of section 58 (a) of the principal Law, there shall be ^^aiot added the words "the Board shall also permit the import of machi nery or equipment intended to be used as rental equipment, within the meaning of section 40A, and included in the approved project of the lessee enterprise". 24. Section 62 of the principal Law shall be replaced by the following ^^^nt of section: "Exemption 62. (a) In this section — , , , ״ from indirect taxes. earmarked goods means — (1) goods intended for the establishment or enlargement of an approved enterprise in accordance with an approved project and includes office equipment designated by re gulations ; (2) machinery or equipment intended to be used as rental equipment, within the meaning of section 40A, of an equipment rental enterprise in accordance with an ap proved project, if exemption would be grant ed for it under this section if it were owned by the lessee enterprise; but it does not include raw materials and a private motor vehicle within the meaning of the Traffic Ordinance; "exempted goods" means earmarked goods to which subsection (b) applies. (b) Earmarked goods are exempt from indirect taxes if'they were imported under a permit issued by virtue of section 58 or were acquired in Israel and the Board has granted the acquirer a certificate of exemp tion from indirect taxes; for this purpose, "indirect taxes" means — 287 (1) the part of the customs duty under the Customs Tariff and Exemption Ordinance, 1937!), which is in excess of the rate pre• scribed in section 6 of the Schedule to the said Ordinance; (2) purchase tax under the Purchase Tax (Goods and Services) Law, 5712—19522); (3) excise duty under the Cement Ordi• nance, 19443); (4) charges under the Emergency Regula• tions (Compulsory Payments) Law, 5718— 19584); (5) taxes and charges under any law re• placing the said enactments. (c) A certificate of exemption under this section may be subject to conditions.". Amendment of 25. In section 62A of the principal Law — section 62A. (1) in paragraph (1), the words "but before the approval thereof" shall be replaced by the words "but not later than sixty days after approval thereof"; (2) paragraph (2) shall be replaced by the following para• graph: "(2) the owner of the enterprise has furnished a cer• tificate from the Board that it would have issued a permit for their import under section 58, or, if they were ac• quired in Israel, that it would have issued a certificate of exemption, had they been acquired after approval of the project;". Amendment of 26. At the end of section 64 of the principal Law, there shall be added section 64. the words "and with the addition of interest at the rate of 22 per cent of the amount of such taxes, duties and charges from the day on which the goods were released from the control of the Customs or from the day on which they were acquired, as the case may be". Amendment of 27. At the end of section 64A of the principal Law, there shall be added section 64A. the words "and with the addition of interest at the rate of 22 per cent of the amount of such duty, tax and charges from the day on which the goods were released from the control of the Customs or from the day on which they were acquired, as the case may be." 1) P.G. of 1937, Suppl. I, p. 215 (English Edition). 2) Sefer Ha-Chukkim of 5712, p. 344; LSI vol. VI, p. 150. 3) P.G. of 1944, Suppl. I, p. 39 (English Edition). 4) Sefer Ha-Chukkim of 5724, p. 17; LSI vol. XVIII, p. 173. 288 28. The following sections shall be inserted after section 65 of the Addition of principal Law: sections 65A and 65B. "Drawback 65A. (a) The Ministers may with the approval of the grant. Finance Committee of the Knesset prescribe rules for the giving of a drawback grant to an approved enter• prise or an equipment rental enterprise which has ac• quired exempted goods referred to in section 62 (a) produced in Israel. The grant may be equal to the whole or part of the amount of indirect taxes paid on the goods used for the production of the goods acquired by the enterprise or may be different proportions of the amount of taxes paid as aforesaid or may be calculated on some other basis, all according to classes of enterprises or classes of goods. (b) For the purposes of this Law, a drawback grant shall to all intents be treated as an exemption from indirect taxes under section 62.". Grant for 65B. (a) The Ministers may, with the approval of the payment of Finance Committee of the Knesset, prescribe that a per• indirect taxes. son entitled to exemption from or a refund of indirect taxes shall, instead of such exemption or refund, be given a grant for the payment of indirect taxes. The grant may be a proportion of the whole or part of the amount of the original cost, within the meaning of sec• tion 40A, of the goods or may be calculated on some other basis, and it may be of different amounts according to different classes of enterprises or classes of goods. (b) A grant for the payment of indirect taxes shall be regarded as a grant exempt from income tax for the acquisition of property, and the provisions of section 21 (b) of the Ordinance shall apply. (c) For the purposes of this Law, a grant for indirect taxes shall to all intents be treated as an exemp• tion from indirect taxes under section 62.". 29. In section 74 of the principal Law — Amendment of section 74. (1) in subsection (a), the words "or an enterprise containing approved parts established at different times" shall be inserted after the words "the approved project" and the words "or if it contains several approved parts, in respect of each ap• proved part according to the time when it was approved" shall be added at the end; 289 (2) in subsection (b) — (a) paragraph (1) shall be replaced by the following paragraph: "(1) the Board shall prescribe the mode of cal• culating the part of the chargeable income of the enterprise which is to be regarded as the charge• able income of any approved part; so long as the Board has not prescribed the mode of calculation, there shall be regarded as the chargeable income of any approved part such part of the chargeable income of the whole enterprise as bears to the whole of such chargeable income the same pro• portion as the value of the fixed assets of the enter• prise in that approved part bears at the time to the value of the fixed assets of the whole enterprise; in respect of each part of the enterprise, deprecia• tion shall only be deducted from the chargeable income of the same part and in respect of the assets therein; where the chargeable income of an approved part is less than the amount of deprecia• tion, and a balance of accelerated depreciation remains, deduction of such balance shall be per• mitted in the next following successive years from the chargeable income of that approved part; in this paragraph — "depreciation" includes an additional deprecia• tion allowance prescribed under any law; "accelerated depreciation" means the extra de• preciation allowance which may be requested under section 42 and the additions thereto under any law;"; (b) in paragraph (3), the words "the approved part" shall be replaced by the words "the approved parts". Amendment of 30. In section 75 of the principal Law — section 75. (1) subsection (a) shall be replaced by the following sub• section : "(a) Where it appears to the Director that a person who has received approval has not complied with any of the provisions of this Law or the regulations made thereunder of has not complied with the approved pro• ject or any of the conditions of the approval, he may send the holder of the approval advance notice of his 290 intention to propose to the Board that it consider the suspension or prospective or retrospective cancellation of the approval. Where notice as aforesaid has been delivered, the Board may — (1) defer benefits and grants pending clarifica• tion of the matter; (2) suspend or prospectively or retrospectively cancel the approval if despite the notice the holder of the approval does not within fifteen days of re• ceipt of the notice comply with the aforesaid pro• visions, project or conditions of approval; and upon its doing so, the holder of the approval shall pay the fees, taxes and other compulsory charges in respect of which the benefits were granted un• less the Board prescribes that they shall not be paid or shall only be paid in part; payment shall be made at. the times prescribed by the Board or by the Director in accordance with its directives."; (2) in subsection (b), the words "thirty days" shall be re• placed by the words "sixty days"; (3) in subsection (c), the words "or an addition of 20 per cent of the amount to be returned, whichever is more" shall be added at the end.. 31. In section 75A of the principal Law, the words "or as the Director Amendment of may prescribe in accordance with its directives" shall be added at the end. section 75A. 32. In section 75B of the principal Law — Amendment of * r section 75B. (1) in subsection (a), the words "a grant under section 40B (1) ". shall be replaced by the words "any grant under this Law", the words "or by the Director in accordance with its directives "shall be inserted after the words "at a later time prescribed by the Board" and the words "thirty days" shall be replaced by the words "sixty days". (2) in subsection (b), the words "a grant under section 40B" shall be replaced by the words "any grant under this Law", the words "or it passes a resolution for its voluntary winding-up" shall be inserted after the words "or a winding- up order is made for it", the words "or the passing of the resolution" shall be inserted after the words "the making of the winding-up order" and the words "the same shall also apply, mutatis mutandis, to an individual against whom a re• ceiving order has been made in bankruptcy proceedings" shall be added at the end; 291 ' "" (3) in subsection (c), the word "thirty" shall be replaced by the word "sixty"; (4) the following subsection shall be added after subsec tion (d): "(e) Where a grant or part thereof has been returned, under the provisions of subsection (a) or (b), the income for the years between the giving and the return of the grant shall be determined as if the grant or the returned part thereof had not been given, and assessments made for the said years shall be amended accordingly.". Addition of 33. The following section shall be inserted after section 76 of the section76A. principal Law: "Publication 76A. Rules prescribed by the Board under this Law .".be published ״of rules of Board. sha Amendment of 34. In section 94 of the principal Law — section94• (1) in subsection (a) - (a) the expression "grant" in the opening passage shall be replaced by the expression'"investment grant"; (b) the expression "the 14th Tammuz, 5737 (30th June, 1977)" in paragraph (1) shall be replaced by the expression "the 14th Nisan, 5740 (31st March, 1980)"; (c) paragraph (2) shall be re-marked as paragraph (3) and the following paragraph shall be inserted before it: "(2) he received approval between the 1st Nisan, 5736 (1st April, 1976) and the 25th Adar, 5741 (31st March, 1981) and implemented the project within the period prescribed by the Board in the instrument of approval but not later than the 9th Nisan, 5745 (31st March, 1985);"; (2) in subsection (b), the words "in the case of rental equip ment, means the arrival thereof in the area of the lessee enter prise" shall be inserted after the words "means the arrival thereof in the area of the enterprise". Replacement 35. The Schedule to the principal Law shall be replaced by the following of Schedule. Schedule: "SCHEDULE (Section 40C) Rate of Investment Grant Enterprise in Enterprise in Enterprise in Development Development Other Zone "A" Zone "B" Zone 30 per cent 15 per cent 5 per cent" 292 36. In section 20 (b) of the Encouragement of Capital Investments Amendment of (Amendment No. 8) Law, 5731—19711), the following shall be added at Encouragement of Capital the end: "if he makes application for the grant within eighteen months Investment after the date on which the project was implemented or, where the Board (Amendment No. 8) Law. has postponed the coming into force of the approval until more than eighteen months after the date of completion of the implementation of the project, within six months after the date of the coming into force of the approval or within six months after the date of publication of the Encouragement of Capital Investments (Amendment No. 14) Law, 5736— 1976, whichever period ends last.". 37. In the Customs Ordinance2) — Amendment of (1) section 160A is hereby repealed; Customs Ordinance. (2) in section 160C, the expression "in sections 160 and 160A" shall be replaced by the expression "in section 160". 3 38. In the Defence Loan (Approved Undertakings) Law, 5734—1974 ), Amendment of in section 1, the expression "section 47" in paragraph (1) of the definition Defence Loan (Approved of "privileged income" shall be replaced by the expression "section 47 Undertakings) (a)(1) or 2 (b) (1) or (c)(1)". Law. 39. This Law shall have effect from the 1st Nisan, 5736 (1st April, 1976): Commencement. ־Provided that section 19(2) shall have effect from the tax year 1975 oh wards. 40. A person who made application f6r approval of a project by the Transitional 29th Adar, 5736 (31st March, 1976) and was given the approval after that provision, date shall be entitled to opt for benefits, including an investment grant, under this Law or under the principal Law as in force before its amend ment by this Law. 41. Where before the coming into force of this Law a person applied for Validation, and received a grant for the payment of indirect taxes instead of exemp tion from or a refund of indirect taxes, such grant shall be deemed to have been validly given instead of an exemption or refund as aforesaid. 42. This Law shall be published in Reshumot within thirty days from Publication, the date of its adoption by the Knesset. YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State 1) Sefer Ha-Chukkim of 5731, p. 30 — LSI vol. XXV, p. 20. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 3, p. 39; NVvol I, p. 51. 3) Sefer Ha-Chukkim of 5734, p. 67; LSI vol. XXVIII, p. 64. 293 (No. 113) SAVINGS LOANS LAW, 5736—1976* Definitions. 1. In this Law, "savings loan" means — (1) a loan under the Savings Loan Law, 5730 0, the date of repayment which is the 1st October, 1976; (2) a loan under the Savings Loan Law, 5731—19712), the date of repayment of which is the 1st October, 1976, or the 1st October, 1977. New loan. 2. A person who, having made a savings loan, forbears from demand" ity its repayment until the expiration of four years from the date of re• payment stated in section 1 (hereinafter referred to as "the original date of repayment") shall be deemed to have re-lent the redemption money of the loan certificate in his possession for the said four years and the loan certificate shall be deemed to have been issued in respect of the new loan. Conditions of 3. (a) The new loan shall bear interest at the rate of 5 per cent per new loan. annum. (b) The provisions of sections 10 (b), 11, 12 (c) and 12A of the Law under which the savings loan was made shall apply to the new loan: Provided that subsection (a) (2) and (3) of section 11 shall for this purpose be read as follows: "(2) "basic index" means the cost-of-living index published for the month of June preceding the original date of repayment; (3) "new index" means the cost-of-living index last published before the new date of repayment". YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Pinnace EFRAYIM KATZIR President of the State * Passed by the Knesset on the 4th Elul, 5736 (30th August, 1976) and published in Sefer Ha-Chukkim No. 828 of the 14th Elul, 5736 (9th September, 1976), p. 296; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1258 of 5736, p. 366. 1) Sefer Ha-Chukkim of 5730, p. 52; LSI vol. XXIV, p. 46. 2) Sefer Ha-Chukkim of 5731, p. 76; LSI vol. XXV, p. 71. 294 BUDGET LAWS BUDGET (FINANCIAL YEAR 1975) (No. 2) LAW, 5736—1976* 1. In addition to the amounts which it is authorised to expend under Additional Budget for the the Budget (Financial Year 1975) Law, 5735—1975i) (hereinafter referred year 1975. to as "the principal Law"), the Government is authorised to expend in the financial year 1975 an amount of 9,445,000,000 pounds (hereinafter referred to as "the Additional Budget"). 2. The provisions of the principal Law shall also apply to the Addi• Application of principal Law. tional Budget. 3. This Law shall have effect from the date of the coming into force Commencement. of the principal Law. FORECAST OF RECEIPTS AND LOANS (FINANCIAL YEAR 1975) (No. 2) IL Grand Total 9,145,000,000 Part A — Ordinary Receipts 7,360,040,000 Part B — Receipts from Loans and Capital Account 1,784,960,000 Part A — Ordinary Receipts 7,360,040,000 Taxes and Compulsory Payments 40,000,000 Taxes on Income and Property 2,700,000,000 01 — Income Tax 2,540,000,000 04 — Taxes on Property (less Compensation Fund) 110,000,000 05 — Banks and Insurance Companies Tax 50,000,000 Taxes on Expenditure (—) 970,000,000 11 — Customs Duty and Import Charge (—) 770,000,000 13 — Purchase Tax (95 p. ct.) (—) 311,000,000 15 — Excise 20,000,000 18 — Fuel Tax (—) 90,000,000 19 — Foreign Travel Tax 50,000,000 22 — Defence Stamp Impost (—) 25,000,000 23 — Increment Tax and Exchange Rate Differen• tials 250,000,000 24 — Vehicle Fees (58 p. ct.) (—) 700,000 26 — Port Charge (—) 87,000,000 * Passed by the Knesset on the 22nd Adar Alef, 5736 (23rd February, 1976) and published in Chukkei Taktziv No. 67 of the 6th Nisan, 5736 (6th April, 1976), p. 3; the Bill and an Explanatory Note were published in Chukkei Taktziv (Hat- za'ot) No. 63 of 5736, p. 3. 1) Chukkei Taktziv No. 66, p. 3; LSI vol. XXIX, p. 332. 295 Compulsory Loan and War Damage Compensation Tax (—) 1,690,000,000 31 — War Loan (—) 1,690,000,000 Transferred Revenue 32 — Direct to Local Authorities (—) 500,000 (2) Vehicle Fees (21 p. ct.) (—) 500,000 33 — General Grant-in-Aid through Ministry of the Interior : 500,000 (1) Purchase Tax (5 p. ct.) 1,000,000 (2) Vehicle Fees (21 p. ct.) (—) 500,000 Interest and Profits 950,000,000 35 — Collection of Interest 100,000,000 40 — Profits of Bank of Israel '. 850,000,000 Transfer from Part B 6,370,040,000 Part B — Receipts from Loans and Capital Account 1,784,960,000 Internal Loans 440,000,000 Loans from National Insurance Institute 440,000,000 Foreign Loans and Grants-in-Aid 3,625,000,000 Food Surpluses • 20,000,000 External Loans and Grants-in-Aid 3,650,000,000 Advance Payments from Bank of Israel 4,090,000,000 Transfer to Part A (—) 6,370,040,000 FIRST SCHEDULE V EXPENDITURE BUDGET (FINANCIAL YEAR 1975) (No. 2) IL GRAND TOTAL 9,145,000,000 Part A—Ordinary Expenditure 7,360,040,000 Part B—Development Expenditure and Capital Account.. 1,784,960,000 Part A—Ordinary Expenditure 7,360,040,000 Government and Administration 144,084,000 12,194,000׳ Ministry of Finance — 05 06 — Ministry of the Interior 5,450,000 07 — Ministry of Police 44,800,000 09 — Ministry of Foreign Affairs 2,740,000 12 — Benefits and Compensation 51,900,000 13 — Sundry Expenditure 27,000,000 Defence 3,495,000,000 Ministry of Defence 3,325,000,000 Emergency Expenditure (Civil) 60,000,000 Budget of Israel-Held Areas 110,000,000 Local Authorities 165,000,000 18 — Grant-in-Aid to Local Authorities 165,000,000 Social and Community Services 2,077,740,000 20 — Ministry of Education and Culture 228,591,000 21 — Higher Education 66,000,000 22 — Ministry of Religious Affairs 6,148,000 23 — Ministry of Labour 27,230,000 24 — Ministry of Health 58,746,000 25 — Pensions to Invalids 400,000,000 26 — Ministry of Social Welfare 14,525,000 27 — National Insurance 788,400,000 28 — Contribution to Broadcasting Authority 27,100,000 29 — Ministry of Housing 57,000,000 32 — Subsidies for the Stabilisation of Prices 800,000,000 Economy 341,704,000 33 — Ministry of Agriculture 17,000,000 36 _ Ministry of Commerce and Industry 5,150,000 37 — Ministry of Tourism 1,800,000 38 — Encouragement of Exports 256,000,000 40 — Ministry of Transport 3,850,000 41 — Contribution to Vehicles Budget 650,000,000 42 —- Grants-in-Aid and Subsidies to Transport 51,404,000 45 _ Payment of Interest 530,000,000 Reserves 606,512,000 47 — Special Budgets 606,512,000 Part B—Development Expenditure and Capital Account .. 1,784,960,000 Development Expenditure 844,960,000 Investments in Government and Administration 3,450,000 / 52 — Police and Prisons 3,450,000 57 — Local Authorities 39,750,000 Investments in Social and Community Services .... 310,090,000 60 — Education 29,330,000 61 — Higher Education 2,700,000 63 — Religion 17,700,000 64 — Employment and Vocational Training 3,800,000 297 67 — Health 102,400,000 68 — Social Welfare 23,160,000 70 — Housing 131,000,000 Investments in Branches of the Economy 491,670,000 72 — Agriculture 71,000,000 73 — Water Projects 10,000,000 75 — Petroleum Pipelines and Drillings 82,000,000 76 — Industry and Handicraft 88,400,000 79 — Transport 20,770,000 ׳,Roads 3000,000 — 80 81 — Communications 20,000,000 83 — Various Enterprises ., 196,500,000 84 — Payment of Debts 840,000,000 85 — Budgetary Funds for Short-Term Financing .... 100,000,000 SECOND SCHEDULE — EARMARKED REVENUE Budget No.2 IL Grand Total 51,550,000 Part A Ordinary Expenditure ..11,550,000 Part B—Development Expenditure and Capital Account.. 40,000,000 Part A—Ordinary Expenditure 11,550,000 24—Ministry of Health 1,250,000 24.10—Head Office 163/90 Revenue from Sick-Fund 950,000 136/91 Revenue from Hadassah 300,000 32 — Subsidies for Stabilisation of Prices 10,300,000 32.20 — Subsidies for Products and Raw Products to Agriculturists / 141/96 Contribution from Fish Marketing Agencies 30,000 183/73 Revenue from Fodder Differentials 10,000,000 Part B—Development Expenditure and Capital Account .... 40,000,000 70—Housing 40,000,000 510/73 Revenue from External Agencies — Financing of Loans to Young Couples — Amount of Scheme 40,000,000 THIRD SCHEDULE — BUSINESS ENTERPRISES Budget No. 2 IL Business Enterprises Total Revenue 125,200,000 90—Revenue of Housing Enterprises 25,200,000 90 Revenue from Financing Operations 25,200,000 97—Revenue of Trading Account , 100,000,000 80 Increase of Stock 100,000,000 Business Enterprises Total Expenditure 125,200,000 90—Expenditure of Housing Enterprises 25,200,000 A. Operational Expenses 25,200,000 97—Expenditure of Trading Account 100,000,000 (A detailed presentation of the data of the First and Third Schedules s omitted in this translation.) YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State INTERIM BUDGET (FINANCIAL YEAR 1976) LAW, 5736—1976* 1. The Government is authorised to expend in the period from the Expenditure 1st Nisan, 5736 (1st April, 1976) to the 2nd Tammuz, 5736 (30th June, Budget and division 1976) an amount of 16,242,137,000 pounds, being the fifth part of the thereof. amount specified in section 2 of the Budget (Financial Year 1976) Bill, 5736—1976!) (hereinafter referred to as "the Bill"), less the amounts specified in budget heads 47, "General Reserve", 87, "Reserve for Development Expenditure", and 48 and 88, "Price Increase Reserves", in the first column of the First Schedule to the Bill; this amount is divided into parts, budget heads, fields of operation, schemes and subschemes, within the meaning of section 1 of the Bill, which are equal to the fifth part of the parts, budget heads, fields of operation, schemes and sub- schemes in the first column of the First Schedule to the Bill, less budget heads 47, "General Reserve", 87, "Reserve for Development Expendi• ture", and 48 and 88, "Price Increase Reserves". * Passed by the Knesset on the 28th Adar Bet, 5736 (30th March, 1976) and pub• lished in Chukkei Taktziv No. 68 of the 8th Nisan, 5736 (8th April, 1976), p. 22; the Bill was published in Chukkei Taktziv (Hatza'ot) No. 64 of 5736, p. 31. 1) Chukkei Taktziv (Hatza'ot) No. 64, p. 14. 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 4010525.000מ3^22 ~~ ^'"" * משרד המשפטים (התימה מוסדית). Revenue- 2. (a) In addition to the amount which it is authorised to expend Conditioned Expenditure under section 1, the Government is authorised to expend in the aforesaid Budget and period, under that section, an amount of830,340,000 pounds, being the fifth division thereof. part of the amount specified in section 4 of the Bill, as revenue-conditioned expenditure; this amount shall be divided into parts, budget heads, fields of operation, schemes and subschemes which are equal to the fifth part of the parts, budget heads, fields of operation, schemes and subschemes in the second column of the First Schedule to the Bill. (b) The Government is authorised to expend the amounts referred to in this section on condition that the amount expended on a particular subscheme does not exceed the amount of receipts actually collected for that subscheme. Authorisation- 3. In respect of any subscheme in the First Schedule to the Bill in which -contract־to liability and an amount appears in the third column, it shall not be permissible to division thereof. operate, or contract a liability, in the period mentioned in section 1 save within the limits of an amount equal to half that amount. Maximum 4. The Government is authorised to fill in the period mentioned in number of posts and division section 1 64,862 i posts, being the number of posts specified in section thereof. 6 of the Bill, less the number of posts specified in budget head 47, "Gene ral Reserve", in the fourth column of the First Schedule to the Bill; this number of posts shall be divided into parts, budget heads, fields of opera tion, schemes and subschemes equal to the parts, budget heads, fields of operation, schemes and subschemes in the fourth column of the First Schedule to the Bill, less budget head 47, "General Reserve". ' Security Budget. 5. The fifth part of the amount specified in budget head 15 of the Bill, "Ministry of Defence", is hereinafter referred to as "the Security Interim Budget"; the provisions of section 7 of the Bill shall apply to the Security Interim Budget. Business 6. (a) In addition to the amounts which it is authorised to expend Enterprises under sections 1 and 2, the Government is authorised to expend in the Budget and division thereof. period mentioned in section 1 the fifth part of each of the amounts specified in the first column of the second part of the Second Schedule to the Bill; the said amounts shall be divided into budget heads, fields of operation, schemes and subschemes equal to the fifth part of the budget heads, fields of operation, schemes and subschemes in the first column of the second part of the Second Schedule to the Bill. (b) The provisions of section 3 shall apply to a subscheme in the second part of the Second Schedule to the Bill in which an amount ap pears in the third column. (c) In addition to the number of posts which it is authorised to fill under section 4, the Government is authorised to fill in the period 300 mentioned in section 1 the number of posts specified in the fourth column of the second part of the Second Schedule to the Bill; the said number of posts shall be divided into budget heads, fields of operation, schemes and subschemes equal to the budget heads, fields of operation, schemes and subschemes in the fourth column of the second part of the Second Schedule to the Bill. Use of head 7. The Minister of Finance may, with the approval of the Finance "Emergency Committee of the Knesset, prescribe the purposes for which the fifth Expenditure part of the amount in budget head 16, "Emergency Expenditure (Civil)". (Civil)", shall be used. 8. The Minister of Finance shall by the 9th Kislev, 5737 (1st Decem• Supply of particulars. ber, 1976) submit to the Finance Committee of the Knesset particulars as to — (1) expenditure, including revenue-conditioned expendi• ture, incurred; (2) receipts collected; (3) the number of posts filled; (4) liabilities created, as the Committee may request. 9. (a) The Minister of Finance is charged with the implementation Implementation of this Law and may make regulations as to everything relating to its and regulations. implementation, including the further breakdown of subschemes, other than subschemes in budget head 02, "Knesset". (b) The Chairman of the Knesset may make regulations as to the further breakdown of subschemes in budget head 02 "Knesset". 10. In the Budget (Financial Year 1975) Law, 5735—1975!), the closing Amendment of passage of section 11(b), beginning with the words "Provided that", Budget (Financial Year 1975) Law. shall be deleted. 11. (a) This Law, except section 10, shall have effect from the 1st Commencement. Nisan, 5736 (1st April, 1976). (b) Section 10 shall have effect from the 20th Nisan, 5735 (1st April, 1975). YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State 1) Chukkei Taktziv No. 66 of 5735, p. 5 ; LSI vol. XXIX, p. 332. BUDGET (FINANCIAL YEAR 1976) LAW, 5736—1976* Definitions. 1. In this Law — "the financial year 1976" means the financial year beginning the 1st Nisan, 5736 (1st April, 1976) and ending the 12th Nisan, 5737 (31st March, 1977); "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, speci• fied in a heading marked with adash and two dots; "scheme" means an amount, or a number of posts, specified in a heading marked with a double dash and a dot; "subscheme" 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 — means the Minis• ter designated by the Government or the person appointed by that Minister. Expenditure 2. The Government may expend in the financial year 1976 an amount Budget and of 87,600,000,000 pounds; the division of that amount into parts and of division thereof. each part into budget heads, fields of operation, schemes and subschemes shall be as set out in the first column of the First Schedule, headlined "Expenditure". Additional 3. Notwithstanding the provisions of section 2, the Government is expenditure. authorised to expend in the financial year 1976, with the prior approval of the Committee, additional amounts for purposes which shall be desig• nated by the Committee after it appears to it that the revenue necessary to cover the additional expenditure will be received. Revenue- 4. (a) In addition to the amounts which it is authorised to expend Conditioned under sections 2 and 3, the Government is authorised to expend in the Expenditure Budget financial year 1976 an amount of 5,296,633,000 pounds as "revenue- and division conditioned expenditure", provided that the receipts to finance the ex- thereof. * Passed by the Knesset on the 1st Tammuz, 5736 (29th June, 1976) and published in Chukkei Taktziv No. 69 of the 12th Av, 5736 (9th August, 1976), p. 3; the Bill and an Explanatory Note were published in Chukkei Taktziv (Hatza'ot) No. 64 of 5736, p. 14. 302 penditure will be received; the division of this amount into parts and of each part into budget heads, fields of operation, schemes and subschemes shall be as set out in the second column of the First Schedule, headlined "Revenue-Conditioned Expenditure". (b) The Government is authorised to expend the amounts of the Revenue-Conditioned Expenditure Budget on condition that the amount expended on a particular subscheme does not exceed the amount of receipts which will actually be collected for that subscheme by the ex piration of two months from the expiration of the financial year. Authorisati , . , . , , , ״ .״ , . , 5. In respect of a subscheme in the First Schedule in which an amount to contract appears in the third column, headlined "Authorisation to Contract liabilities. Liabilities", it shall not be permissible to operate or contract a liability in the finanical year 1976 save within the limits of that amount. 1 ower 6. The Government may in the financial year 1976 fill 64,900 posts! ^1"n g the division of this number of posts into parts and of each part into budget heads, fields of operation, schemes and subschemes shall be as set out in the fourth column of the First Schedule, headlined "Manpower Ceiling". 7. (a) The amount appropriated in the Expenditure Budget under Security Budget, budget head 15, "Ministry of Defence", is hereinafter referred to as "the Security Budget"; the division of the Security Budget into fields of opera tion, schemes and subschemes shall be prescribed, upon the proposal of the Government; 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 Budget, and authorisations to contract liabilities, as well as manpower ceilings, shall be indicated in the Security Budget; for these purposes, sections 4, 5, 6 and 9 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 join1 committee mentioned in subsection (a). 8. (a) If the transferred revenue from purchase tax exceeds Transferred 293,000,000 pounds, the Government may expend the excess revenue revenue• within six months from the expiration of the financial year 1976 for the purpose stated in budget head 17, "Local Authorities"; the same shall apply if the transferred revenue from vehicle licence fees exceeds 70,000,000 pounds or the transferred revenue from land appreciation tax exceeds 115,000,000 pounds or the transferred revenue from addi tional tax exceeds 95,000,000 pounds. 303 (b) In this section — "transferred revenue from purchase tax" means 5 per cent of the total revenue received from purchase tax; "transferred revenue from vehicle licence fees" means 42 per cent of the total revenue received from vehicle licence fees; "transferred revenue from land appreciation tax" means 60 per cent from the total income received from land appreciation tax; 3 "transferred revenue from additional tax" means 33 V per cent of the total revenue received from additional tax under the Land'Ap• preciation Tax Law, 5723—19631). Business 9. (a) In addition to the amounts which it is authorised to expend Enterprises under sections 2, 3, 4, 7 and 8, the Government is authorised to expend in Budget. ^ financjai vear !976 the amounts specified in the first column of the second part of the Second Schedule (such amounts hereinafter referred to as the "Business Enterprises Budget"); the division of the Business Enterprises Budget into budget heads, fields of operation^ schemes and subschemes shall be as set out in that part. (b) The provisions of section 5 shall apply to a subscheme in the second part of the Second Schedule in which any amount appears in the third column. (c) In addition to the number of posts which it is authorised to fill under section 6, the Government is authorised to fill in the financial year 1976 the number of posts specified in the fourth column of the second part of the Business Enterprises Budget; the division of the said posts into budget heads, fields of operation, schemes and subschemes shall be as set out in that part. (d) The estimated receipts to cover the Business Enterprises Bud• get in the financial year 1976 is as set out in the first part of the Second Schedule. (e) If the Minister of Finance considers that any of the amounts of receipts set out in the first part of the Second Schedule will exceed the estimate or that any additional receipts, outside the estimate, will be received, he may, by notice to the Committee, prescribe the subschemes for which the additional amounts are to be expended: Provided that an amount exceeding 2,000,000 pounds or 10 per cent of the amount of the original subscheme, whichever is more, may only be expended with the prior approval of the Committee. (f) Notwithstanding the provisions of section 15 (b), an amount appropriated under the Business Enterprises Budget to the payment of the consideration for any work, service or property shall be deemed to i) Sefer Ha-Chukkim of 5723, p. 156; LSI vol. XVII, p. 193. 304 or the service or ׳have been expended when the work has been carried out property for which it is intended to be paid has been received. (g) In this section, "receipts" includes the value of services rendered and property supplied in the financial year 1976. 10. (a) Upon the proposal of the person in charge of any budget head variations in the First Schedule, except budget head 02, "Knesset", the Minister of Finance may — (1) by notice to the Committee transfer any amount of ex penditure from one subscheme to another or a newly-added subscheme of that budget head: Provided that he shall not in this manner vary any subscheme by an amount exceeding 2,000,000 pounds or 10 per cent of the amount of the original subscheme, whichever is more, save with the approval of the Committee; (2) by notice to the Committee increase the amount of revenue-conditioned expenditure in any subscheme, or add revenue-conditioned expenditure in a newly-added subscheme, of that budget head: Provided that he shall not in this manner vary any subscheme by an amount exceeding 2,000,000 pounds or 10 per cent of the amount of the original subscheme, which ever is more, save with the prior approval of the Committee; (3) by notice to the Committee transfer any amount of an authorisation-to-contract-a-liability from one subscheme to another of that budget head: Provided that he shall not in this manner vary any subscheme by an amount exceeding 5,000,000 pounds or 10 per cent of the amount of the original subscheme, whichever is more, save with the prior approval of the Committee; (4) with the prior' approval of the Committee increase the liability in any subscheme, or add־contract-a־authorisation-to an authorisation-to-contract-a-liability in a newly-added sub- scheme, of that budget head; (5) by notice to the Committee transfer any number of posts from one subscheme to another or a newly-added sub- scheme of that budget head: Provided that he shall not in this manner vary any subscheme by a number of posts ex ceeding ten or 10 per cent of the number of posts in the original subscheme, whichever is more, save with the prior approval of the Committee. (b) In budget head 02, "Knesset", the Committee may, upon the proposal of the Chairman of the Knesset, transfer any amount, or number of posts, from one subscheme to another or a newly-added subscheme. (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 — 305 (1) by notice to the Committee transfer any amount of ex• penditure or of any authorisation-to-contract-a-liability from one subscheme to another or a newly-added subscheme of that budget head: Provided that he shall not|in this manner vary any scheme by an amount exceeding 5,000,000 pounds or 20 per cent of the amount of the original scheme, whichever is more, save with the prior approval of the Committee; (2) by notice to the Committee transfer any number of posts from one subscheme to another or a newly-added sub- scheme of that budget head: Provided that he shall not in this manner vary any scheme by a numbsr of posts exceeding twenty-five or 20 per cent of the number of posts of the original subscheme, whichever is more, 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 required by changes in the structure or functions of Government Ministries, provided that the amounts transfer• red 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 operation, scheme or subscheme, 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 subscheme to budget head 47, "General Reserve"; the same shall also apply in respect of budget head 87, "Reserve for Development Expenditure": Provided that the transfer shall in this case be from budget heads in Part B of the First Schedule. Use of reserves. H. (a) The Minister of Finance may, by notice to the Committee, prescribe 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 without the prior approval of the Committee increase in this manner any subscheme by an amount exceeding 2,000,000 pounds or 10 per cent of the amount of the subscheme, whichever is more, or by a number of posts exceeding ten or 10 per cent of the number of posts of the subscheme, whichever is more. 306 The same shall apply to the amounts of budget head 87, "Reserve for Development Expenditure": Provided that these may only be ex• pended under heads of expenditure in Part B of the First Schedule. (b) The Minister of Finance may, with the approval of the Com• mittee, prescribe the purposes for which the amount set out in budget head 16, "Emergency Expenditure (Civil)" is to be expended. (c) The Minister of Finance may, by notice to the Committee, prescribe the apportionment of the amounts of budget heads 48 and 88, "Reserves for Price Increases": Provided that these may only be used to cover price increases in existing subschemes. 12. (a) Where a surplus remains under any of the heads of expendi- Use of surpluses ture set out in the Budget (Financial Year 1975) Law, 5735—1975'), of 1975Budset• other than the head of expenditure of the Knesset, the Minister of Finance may permit such surplus to be used, within four months from the expira• tion of the financial year 1975, for the purpose for which it was ap• propriated or, subject to the provisions of section 10 of the said Law, .for another purpose within the scope of the same head of expenditure. Where a surplus remains after the expiration of four months, the Minister of Finance may, with the prior approval of the Committee, permit it to be used until the expiration of the financial year 1976 for a purpose within the scope of the same head of expenditure. (b) Where a surplus as referred to in subsection (a) is intended for payment for any work carried out or ordered or service or property received or ordered before the expiration of the financial year 1975, the Minister of Finance may, by notice to the Committee, permit it to be used during the financial year 1976 for the purpose to which it was appro• priated. (c) Where a surplus remains under the head of expenditure of the Knesset set out in the Budget Law for the year 1975, the Committee may, on the proposal of the Chairman of the Knesset, permit it to be used during the financial year 1976 for a purpose within the scope of the same head of expenditure. (d) Where the use of a surplus has been permitted under this section, the amount permitted to be expended shall, with any such adaptation as may be appropriate, be added to the Budget for the financial year 1976 as if it were a part thereof. 13. (a) Where a surplus remains under any of the items set out in the Special surpluses. Budget (Financial Year 1975) Law, 5735—1975, and enumerated in the Third Schedule (such enumeration hereinafter referred to as "the Special Surpluses List"), the Minister of Finance may permit it to be used within four months from the expiration of the financial year, for the purpose i) Chukkei Taktziv No. 66 of 5735, p. 5; LSI vol. XXIX, p. 332. 307 to which it was appropriated. Where a surplus remains after the expira• tion of four months, the Minister of Finance may, with the prior approval of the Committee, permit it to be used until the expiration of the financial year 1976 for the purpose to which it was appropriated. (b) The Minister of Finance may, with the prior approval of the Committee, add items to the Special Surpluses List. (c) Where the use of a surplus has been permitted under this section, the amount permitted to be expended shall, with any such adaptation as may be appropriate, be added to the Budget for the finan• cial year 1976 as if it were a part thereof. Time for notice 14. Notice to, or a request for approval by, the Committee under sec• or request tions 10 to 13 shall be filed not later than the 10th Adar, 5737 (28th to Committee. February, 1977). Appropriated 15. (a) An amount appropriated shall be deemed to have been ex• amount deemed pended when the person entitled thereto has been sent a notification to have been expended. that his account with the Accountant-General has been credited there• with. (b) An amount appropriated 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 received, provided that it is paid by the expiration of one month from the expiration of the financial year. Report. 16. (a) Within six months from the expiration of the financial year 1976, the Minister of Finance shall submit to the Knesset — " (1) a report of the receipts collected; (2) a report of the expenditure, including revenue-condi• tioned expenditure, incurred; (3) a report of the number of posts filled. (b) The reports shall be drawn up in respect of the 1976 Budget and the 1976 Business Enterprises Budget 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, schemes and subschemes. Implementation, 17. (a) The Minister of Finance is charged with the implementation regulations and of this Law and may make regulations as to any matter relating to its delegation of powers. implementation, including the further breakdown of subschemes, except subschemes in budget head 02, "Knesset". (b) The Chairman of the Knesset may make regulations as to the further breakdown of subschemes in budget head 02 — "Knesset". 308 (c) The Minister of Finance may delegate any of his powers under this Law, including the power to make regulations prescribing rules for the fiscal administration and accountancy of the State, but not including the power to make regulations with legislative effect. 18. The amounts which the Government may expend or for which it !^"^3 0I t may contract liability, and the posts which it may fill, under this Law include the amounts which it has been authorised to expend or to con• tract liability for, and the posts which it has been authorised to fill, under the Interim Budget (Financial Year 1976) Law, 5736—19761). 19. This Law shall have effect from the 1st Nisan, 5736 (1st April, 1976). Commencement. 20. This Law shall be published in Reshumot within two months from Publication of the date of its adoption. (Following are condensed versions, as appearing at the beginning of the First and Second Schedules, respectively, of the Ordinary and Development Budgets and the Business Enterprises Budget. The re• mainder of the First and Second Schedules, containing the further break• down of the said Budgets, and the Third Schedule, containing the Special Surpluses List (see section 13 of the Law), are omitted in this translation). 1) Chukkei Taktziv No. 68, p. 22; supra, p. 299. 309 Authorisa• Revenue- tion to Manpower Expenditure Conditioned Head Contract Ceiling Expenditure Liability 1,000 1,000 1,000 pounds pounds pounds GRAND TOTAL 87,600,000 5,296,633 64,900 Part A: Ordinary Expenditure 70,100,000 2,475,433 64,900 Part B: Development Expenditure and Cap• ital Account ....17,500,000 2,821,200 Part A: Ordinary Expenditure 70,100,000 2,475,433 64,900 Government and Administration 2,590,205 107,113 29,890 01 President of the State 3,050 10 34 02 Knesset 35,435 — 03 Members of Government 1,500 — 04 Prime Minister's Office 60,470 9,200 878 05 Ministry of Finance 407,855 33,392 6,795.5 06 Ministry of the Interior 53,900 3,735 4,700 791 07 Ministry of Police 906,200 34,108 18,565 08 Ministry of Justice 130,350 5,318 1,846.5 09 Ministry of Foreign Affairs 335,700 21,350 5,750 980 11 State Comptroller's Office 36,920 — 12 Benefits and Compensation 494,000 — 13 Sundry Expenditure 87,825 — 14 Financing of Political Parties 37,000 — Defence 34,685,000 15 Ministry of Defence 34,010,000 16 Emergency Expenditure (Civil) 350,000 Contribution to Budget of Israel- Held Areas 325,000 Local Authorities 3,008,000 17 Transferred Revenue 1,534,000 18 Grant-in-Aid to Local Authorities .. 1,474,000 310 Authorisa• Revenue- tion to Manpower Expenditure Conditioned Head Contract Ceiling Expenditure Liability Social and Community Services 10,601,450 2,280,074 25,775 20 Ministry of Education and Culture .. 3,491,000 35,527 3,074.5 21 Higher Education 475,000 710,000 22 Ministry of Religious Affairs 149,000 3,785 454 23 Ministry of Labour 280,500 30,610 63,000 1,936 24 Ministry of Health 1,059,300 645,422 16,498 25 Pensions to Invalids 317,300 72 26 Ministry of Social Welfare 679,600 32,955 2,124 27 National Insurance ' 2,190,000 28 Contribution to Broadcasting Autho• rity 20,000 29 Ministry of Housing 402,350 6,930 1,051.5 30 Ministry of Immigrant Absorption .. 62,600 1,750 565 , 32 Subsidies for the Prices of Basic Com• modities 1,475,000 1,523,095 Economic Purposes 5,278,650 88,246 9,175.5 33 Ministry of Agriculture 230,700 41,000 3,708.5 35 Atomic Energy Commission 120,000 36 Ministry of Commerce and Industry 317,550 29,912 1,121 37 Ministry of Tourism 67,100 4,151 7,500 279 38 Encouragement of Exports 4,050,000 40 Ministry of Transport ' 101,900 5,673 1,517.5 41 Contribution to Railways Budget— 67,800 42 Grants-in-Aid and Subsidies to Trans• port 175,000 43 Public Works Department and Sur• veys 94,600 7,510 2,549.5 45 Payment of Interest 9,000,000 Reserves 4,936,695 59.5 47 General Reserve 3,594,695 59.5 48 Reserve for Price Increases 1,342,000 311 Authorisa• Revenue- tion to Manpower Head Conditioned Contract Ceiling Expenditure Liability Part B : Development Expenditure and Cap• ital Account 17,500,000 2,821,200 Development Expenditure 7,529,350 2,821,200 Investments in Government and Ad• ministration 64,650 — 51 Government Buildings 37,600 — 78,500 52 Police and Prisons 22,000 — 22,000 53 Law Courts 5,050 — 6,000 57 Local Authorities 115,000 110,800 232,500 Investments in Social and Communal Services 4,563,700 1,100,450 60 Education 470,000 20,000 252,000 61 Higher Education 107,000 — 63 Religion 45,500 — 2,600 64 Employment and Vocational Training 50,500 15,350 71,750 67 Health 486,000 52,000 82,025 68 Social Welfare 111,700 3,600 49,050 70 Housing 3,293,000 1,009,500 4,507,900 Investments in Branches of the Eco• nomy 2,786,000 1,609,950 72 Agriculture 222,000 454,050 759,470 73 Water Projects 135,000 142,500 359,638 75 Investments in Petroleum Economy.. 398,000 135,000 467,140 76 Industry and Handicraft 862,500 628,000 70,000 78 Tourism 14,000 75,750 30,450 79 Transport 187,000 24,550 112,025 80 Roads 139,000 3,000 166,000 81 Communications 565,000 145,000 124,900 83 Various Enterprises 263,500 2,100 92,200 84 Payment of Debts 9,000,000 — 85 Budgetary Funds for Short-Term Fi• nancing 199,500 — 87 Reserve for Development Expenditure 537,950 — 88 Reserve for Price Increases 233,200 — 312 FORECAST OF RECEIPTS AND LOANS FOR THE FINANCIAL YEAR 1976 Forecast of Revenue for Financial Year 1976 1,000 pounds GRAND TOTAL 87,600,000 Part A: Ordinary Receipts 70,100,000 PartB: Receipts from Loans and Capital Account 17,500,000 Part A: Ordinary Receipts 70,100,000 Taxes and Compulsory Payments 47,240,000 Income and Property Taxes 21,462,000 01 Income Tax 18,669,000 Tax from Non-Profit Organisations 210,000 02 Appreciation Tax (40 p. ct.) 75,000 03 Additional Tax (i) 185,000 04 Taxes on Property (less Compensation Fund) 1,035,000 05 Banks and Insurance Companies Tax 273,000 06 Employers'Tax 1,015,000 Taxes on Expenditure 22,985,000 11 Customs Duty and Import Charge 8,325,000 12 Value-Added Tax 4,510,000 13 Purchase Tax (95 p. ct.) 5,532,000 15 Excise 721,000 18 Fuel Tax 2,274,000 19 Foreign Travel Tax 230,000 20 Stamp Duty 486,000 21 Entertainment Tax 4,000 22 Defence Stamp Impost 405,000 23 Increment Tax and Exchange Rate Differentials .. 70,000 24 Vehicle Licence Fees (58 p. ct.) 100,000 25 • Other Licensing Fees 328,000 313 Compulsory Loans and War Damage Compensa• tion Tax 1,620,000 28 Employers' Savings Loan 1,140,000 30 Compensation Fund 250,000 31 War Loan (from land appreciation) 250,000 Additional Taxes 600,000 Allocation in Lieu of Property Rate (—) 961,000 Transferred Revenue 1,534,000 32 To Local Authorities Direct 1,206,000 1) Property Rate Substitute (4. 828 p.ct.) 961,000 2) Vehicle Fees (21 p. ct.) 35,000 3) Land Appreciation Tax (60 p.ct.) 115,000 4) Additional Tax (i) 95,000 33 By Way of General Grant-in-Aid (Ministry of the Interior) 328,000 1) Purchase Tax (5 p. ct.) .. 293,000 2) Vehicle Fees (21 p. ct.).. 35,000 Interest and Profits .... 2,287,000 35 Collection of Interest 1,150,000 36 Interest from Economic Units 9,500 37 Interest from Business Enterprises 500,000 38 Interest from Government Corporations 22,000 39 Interest from Statutory Authorities 5,500 40 Profits from Bank of Israel 600,000 Royalties 420,000 42 Royalties from Business Enterprises 383,000 43 Royalties from Natural Resources 37,000 Sundry Receipts 255,000 46 Repayments o/a Budgets of Earlier Years 55,000 47 Revenue from Various Services 200,000 Transfer from Part B. ..,, 19,898,000 314 Part B : Receipts from Loans and Capital Account 17,500,000 Repayment of Investments and Government Loans 1,070,000 51 Collection of Principal and Sale of Property 450,000 52 Depreciation, Economic Units 18,000 54 Depreciation, Business Enterprises 158,200 55 Depreciation, Statutory Authorities 3,900 56 Depreciation, Government Corporations 8,800 61 Revenue o/a Participation in Communication Investments 344,000 62 Revenue from Ports Authority and Jaffa Port 400 63 Revenue of Israel Lands Authority 86,700 Allocations for Pensions and Compensation 203,000 71 Allocations by Economic Units 65,000 72 Allocations by Business Enterprises 138,000 Internal Loans 10,345,000 81 Loan from National Insurance Institute 2,045,000 82 Revenue from Emissions and Deposits 8,300,000 Foreign Loans and Grants-in-Aid 23,080,000 91 Food Surpluses — 92 Foreign Loans and Grants-in-Aid 23,080,000 Advance Payment from Bank of Israel 2,700,000 Transfer to Part A (—) 19,898,000 315 SECOND SCHEDULE: BUSINESS ENTERPRISES -Authonsa ״ Revenue- tion to Manpower . ... ״ ... _ . ״ _ ״ Head Expenditure Conditioned ... Contract Ceiling Expenditure Liability 1,000 1,000 1,000 pounds pounds pounds TOTAL REVENUE OF BUSINESS EN TERPRISES 11,371,445 89 Revenue of Treasury Enterprises 150,054 a. Government Printer 87,750 b. Office Mechanisation Centre 62,304 90 Revenue of Housing Enterprises 4,025,000 a. Revenue from Immigrant Housing 983,320 b. Revenue from Housing for Slum Clearance and Rehabilitation of Substandard Housing 1,495,320 c. Revenue from Housing for Young Couples 242,500 d. Revenue from Housing in Deve lopment Zones 632,800 e. Revenue from Housing in Settle ments 293,980 f. Revenue from Various Activities 130,000 g. Revenue from Minorities Housing 17,600 h. Revenue of Public Institutions .. 43,000 i. Revenue from Financing Opera tions 240,000 91 Revenue of Productivity Institute .. 28,970 a. Information and Demonstration.. 1,500 b. Activities concerned with Partic ular Trades and Industries 10,220 c. Instruction 9,250 d. Institutes and Centres 8,000 92 Revenue from Educational Equip ment Institute 8,720 a. Information and Instruction 750 b. Research and Development 1,500 c. Publication of Textbooks 3,970 316 Authorisa• Revenue- tion to Manpower Expenditure Conditioned Head Contract Ceiling Expenditure Liability 1,000 1,000 1,000 pounds pounds pounds d. Manufacture of Models 2,500 93 Revenue of Railways 179,350 a. Passenger Transport 27,600 b. Goods Transport 69,400 c. Traffic 1,200 d. Sundry Revenue 3,600 e. Work for Non-Governmental Agencies 4,000 f. Maintenance of Ashkelon El- Arish Line J 2,550 g. Contribution from Ordinary Bud• get 71,000 94 Revenue of Airport and Aerodromes 179,571 a. Ben-Gurion International Airport 165,500 b. Inland Aerodromes 14,071 95 Revenue of Jaffa Port 1,780 96 Revenue of Postal Enterprises 2,620,000 a. Postal Services 286,000 b. Philatelic Sales 36,000 c. Telephones 2,045,000 d. Sundry Revenue 8,000 e. Services for Non-Governmental Agencies 204,000 f. Postal Bank 41,000 97 Revenue of Trading Account 3,600,000 98 Revenue of Israel Lands Administration 518,000 a. Ordinary Revenue 138,400 b. ' Capital Revenue 372,000 c. Revenue of Custodian of Absen• tees'Property 7,600 99 Revenue of Saving-for-Building Scheme.... 60,000 317 Authorisa• Revenue- tion to Manpower Expenditure Conditioned Contract , Ceiling Expenditure Liability 1,000 1,000 1,000 pounds pounds pounds TOTAL EXPENDITURE OF BUSINESS ENTERPRISES 11,371,445 19,220* 89 Expenditure of Treasury Enterprises.. 150,054 881 a. Government Printer 87,750 468* b. Office Mechanisation Centre 62,304 412-1 90 Expenditure of Housing Enterprises.. 4,025,000 5,507,900 a. Operational Expenditure 3,399,630 b. Financing Expenditure 625,730 91 Expenditure of Productivity Institute 28,970 306 a. Operational Expenditure 28,844 b. Special Payments 126 Depreciation 120 Interest 6 92 Expenditure of Educational Equip• ment Institute 8,720 64 a. Operational Expenditure 8,720 b. Special Payments 13 Depreciation 10 Interest 3 93 Expenditure of Railways 179,350 1,977* a. Operational Expenditure 151,172 b. Special Payments 21,628 Depreciation 5,617 Interest 16,011 c. Expenditure for Non-Govern• mental Agencies 6,550 94 Expenditure of Airport and Aerodromes.. 179,571 893 a. Operational Expenses 120,571 b. Special Payments 59,000 Depreciation and Repayment of Principal 32,480 Interest o/a Loans 25,720 Interest o/a Land • •800 318 Authorisa• Revenue- tion to Manpower Expenditure Conditioned Contract Ceiling Expenditure Liability 1,000 1,000 1,000 pounds pounds pounds 95 Expenditure of Jaffa Port 1,780 3 96 Expenditure of Postal Enterprises 2,620,000 14,530 a. Operational Expenditure 1,545,090 b. Special Payments 1,075,090 Depreciation 120,090 Interest ... 228,000 Royalties 383,000 Repayments o/a Earlier Invest• ments 344,000 97 Expenditure of Trading Account .... 3,600,000 4,000,000 — 98 Expenditure of Israel Lands Adminis- tation 518,000 160,500 566 a. Ordinary Budget 90,500 Management Expenditure 56,000 Management of immovable Prop• erty 34,500 b. Development Budget and Capital Expenditure 280,500 c. Special Payments 147,000 99 Expenditure of Saving-for-Building Scheme 60,000 YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State 319 INDEX OF LAWS IN THE ORDER OF THE DATES OF THEIR ADOPTION BY THE KNESSET Title Date of Adoption Postal Bank (Amendment No. 3) Law 16th Cheshvan, 5736 (21st October, 1975) Defence (Finance) Regulations (Extension of Validity) Law 16th Cheshvan, 5736 (21st October, 1975) Council for Higher Education (Amendment No. 5) Law 23rd Cheshvan, 5736 (28th October, 1975) State Service (Benefits) (Amendment No. 10) Law 14th Kislev, 5736 (18th November, 1975) State Service (Benefits) (Amendment No. 11 and Transitional Provisions) Law 14th Kislev, 5736 (18th November, 1975) Local Authorities (Television and Wireless Aerial Masts) Law 20th Kislev, 5736 (24th November, 1975) State Service (Discipline) (Amendment No. 4) Law 20th Kislev, 5736 (24th November, 1975) Customs Ordinance (Amendment No. 6) Law 21st Kislev, 5736 (25th November, 1975) State Service (Benefits) (Amendment No. 12) Law 21st Kislev, 5736 (25th November, 1975) Savings Loan (5735—1975) (Amendment) Law 21st Kislev, 5736 (25th November, 1975) Employers' Tax (5735—1975) (Amend• ment Law) 21st Kislev, 5736 (25th November, 1975) Local Authorities (Legal Advice) Law 5th Tevet, 5736 (9th December,11976) Short-Term Loan (Amendment No. 11) Law 5th Tevet, 5736 (9th December, 1975) National Defence Loan (5729—1969) (Amendment No. 6) Law 5th Tevet, 5736 (9th December, 1975) Loan (Insurance Companies) (Amendment No. 3) Law 12th Tevet, 5736 (16th December, 1975) Explosives (Amendment No. 2) Law 12th Tevet, 5736 (16th December, 1975) Emergency Regulations (Compulsory Pay• ments) (Amendment and Extension of Validity) Law 18th Tevet, 5736 (22nd December, 1975) Inspection of Schools (Amendment No. 3) Law 18th Tevet, 5736 (22nd December, 1975) World Zionist Organisation — Jewish Agency for Israel (Status) (Amendment) Law 19th Tevet, 5736 (23rd December, 1975) Capacity and Guardianship (Amendment No. 4) Law 19th Tevet, 5736 (23rd December, 1975) Emergency Regulations (Arrangements Following Change in Rate of Currency) (Extension of Validity) Law 20th Tevet, 5736 (24th December, 1975) Value Added Tax Law 25th Tevet, 5736 (29th December, 1975) 320 Title Date of Adoption Encouragement of Industry (Taxes) Amendment No. 5) Law 26th Tevet, 5736 (30th December, 1975) Joint Investments Trust (Amendment No. 2) Law 26th Tevet, 5736 (30th December, 1975) Estate Duty (Amendment No. 6) Law 26th Tevet, 5736 (30th December, 1975) Emergency Regulations (Registration and Mobilisation of Equipment) (Extension of Validity) Law 26th Tevet, 5736 (30th December, 1975) Income Tax Ordinance (Amendment No. 23) Law 4th Shevat, 5736 (6th January, 1976) Emergency Regulations (Commodities and Services (Control) — Further Provisions) (Extension of Validity) Law 5th Shevat, 5736 (7th January, 1976) Red Shield of David (Amendment) Law 11th Shevat, 5736 (13th January, 1976) : Local Authorities (Regulation of Guard- Service) (Amendment No. 2) Law 17th Shevat, 5736 (19th January, 1976) Traffic Ordinance (Amendment No. 13) Law 17th Shevat, 5736 (19th January, 1976) Income Tax Ordinance (Amendment No. 2 of 5722—1962) (Amendment No. 7) Law 18th Shevat, 5736 (20th January, 1976) Development Loan (Amendment No. 14) Law 18th Shevat, 5736 (20th January, 1976) Invalids (Pensions and Rehabilitation) (Amendment No. 9) Law 18th Shevat, 5736 (20th January, 1976) Family Law Amendment (Maintenance) (Amendment) Law 18th Shevat, 5736 (20th January, 1976) Public Bodies (Elections) (Amendment) Law 18th Shevat, 5736 (20th January, 1976) Emergency Labour Service (Amendment (25th Shevat. 5736 (27th January, 1976׳ No. 2) Law Succession (Amendment No. 3) Law 2nd Adar Alef, 5736 (3rd February, 1976) Chamber of Advocates (Temporary Pro visions No. 2) Law 2nd Adar Alef, 5736 (3rd February, 1976) Wage Protection (Amendment No. 11) Law Compulsory Education (Amendment No. 10) Law 2nd Adar Alef, 5736 (3rd February, 1976) Municipalities Ordinance (Amendment No. 19) Law 2nd Adar Alef, 5736 (3rd February, 1976) Bankruptcy Ordinance (Amendment No. 6) Law 9th Adar Alef, 5736 (10th February, 1976) Fallen Soldiers' Families (Pensions and Re habilitation) (Amendment No. 11) Law 17th Adar Alef, 5736 (18th February, 1976) Services Import Tax Law 22nd Adar Alef, 5736 (23rd February, 1976) Budget (Financial Year 1975) (No. 2) Law 22nd Adar Alef, 5736 (23rd February, 1976) Chamber of Advocates (Amendment No. 9) Law 29th Adar Alef, 5736 (1st March, 1976) 321 Title Date of Adoption Services Tax (Banking Institutions and In• surance Companies) (Amendment No. 4) Law 7th Adar Bet, 5736 (9th March, 1976) Vegetable Production and Marketing Board (Amendment No. 2) Law 7th Adar Bet, 5736 (9th March, 1976) Sale (Apartments) (Assurance of Invest• ment of Persons Acquiring Apartments) (Amendment) Law 21st Adar Bet, 5736 (23rd March, 1976) National Insurance (Amendment No. 21) Law 28th Adar Bet, 5736 (30th March, 1976) Collective Agreements (Amendment No. 2) Law 28th Adar Bet, 5736 (30th March, 1976) Interim Budget (Financial Year 1976) Law 28th Adar Bet, 5736 (30th March, 1976) Advance Payment Law 29th Adar Bet, 5736 (31st March, 1976) Reserve Service (Compensation) (Amend• ment No. 10) Law 29th Adar Bet, 5736 (31st March, 1976) Water (Amendment No. 6) Law 29th Adar Bet, 5736 (31st March, 1976) Municipalities Ordinance (Amendment No. 20) Law 29th Adar Bet, 5736 (31st March, 1976) Local Authorities (Election and Tenure of Head and Deputy Heads) (Amendment) Law 29th Adar Bet, 5736 (31st March, 1976) Basic Law: The Army 29th Adar Bet, 5736 (31st March, 1976) Free Port Zones (Amendment) Law 29th Adar Bet, 5736 (31st March, 1976) Succession (Amendment No. 4) Law 29th Adar Bet, 5736 (31st March, 1976) Income Tax Ordinance (Amendment No. 24) Law 29th Adar Bet, 5736 (31st March, 1976) Defence Stamp (Amendment and Exten• sion of Period of Operation) (Amend• ment No. 12) Law 29th Adar Bat, 5736 (31st March, 1976) Inter-American Development Bank (Con• vention) Law 29th Adar Bet, 5736 (31st March, 1976) Defence Loan (Approved Undertakings) (Amendment No. 2) Law 29th Adar Bet, 5736 (31st. March 1976) Encouragement of Saving, Income Tax Reductions and Guarantee of Loans (Amendment No. 4) Law 29th Adar Bet, 5736 (31st. March 1976) Medical Practitioners Ordinance (Amendment No. 4) Law 29th Adar Bet, 5736 (31st .March, 1976) State Service (Benefits) (Amendment No. 14) Law 29th Adar Bet, 5736 (31st. March, 1976) Savings Loan Law 12th Nisan, 5736 (12th April, 1976) Parallel Tax (Amendment) Law 12th Nisan, 5736 (12th April, 1976) Emergency Regulations (Areas Held by the Defence Army of Israel — Criminal Jurisdiction and Legal Assistance) (Con• tinuance in Force) Law 3rd Iyar, 5736 (3rd May, 1976) 322 Title Date of Adoption Collective Agreements (Temporary Provi• sion) Law 3rd Iyar, 5736 (3rd May, 1976) Property Tax and Compensation Fund (Amendment No. 12) Law 11th Iyar, 5736 (11th May, 1976) Labour Courts (Amendment No. 6) Law 12th Iyar, 5736 (12th May, 1976) Traffic Ordinance (Amendment No. 14) Law 24th Iyar, 5736 (24th May, 1976) Shipping (Seamen) (Amendment No. 2) Law 25th Iyar, 4736 (25th May, 1976) Civil Defence (Amendment No. 5) Law 25th Iyar, 5736 (25th May, 1976) Notaries Law 3rd Sivan, 5736 (1st June, 1976) Sick Pay Law 16th Sivan, 5736 (14th June, 1976) Encouragement of Saving, Income-Tax Reduction and Guarantee of Loans (Validation) Law 16th Iyar, 5736 (14th June, 1976) Banking Ordinance (Amendment No. 10) Law 16th Iyar, 5736 (14th June, 1976) Mikve Yisrael Agricultural School Law 23rd Sivan, 5736 (21st June, 1976) Purchase Tax (Goods and Services) (Amendment No. 6) Law 24th Sivan, 5736 (22nd June, 1976) Commodities and Services (Control) (Amendment No. 5) Law 24th Sivan, 5736 (22nd June, 1976) Tourist Services Law 30th Sivan, 5736 (28th June, 1976) Emergency Regulations (Commodities and Services (Control) — Further Provisions) (Extension of Validity) (No. 2) Law 30th Sivan, 5736 (28th June, 1976) Absentees' Property (Compensation) (Amendment) Law 1st Tammuz, 5736 (29th June, 1976) Income Tax Ordinance (Amendment No. 3 of 5723—1963) (Amendment No. 3) Law 1st Tammuz, 5736 (29th June, 1976) Development Loan (Amendment No. 15) Law 1st Tammuz, 5736 (29th June, 1976) Budget (Financial Year 1976) Law 1st Tammuz, 5736 (29th June, 1976) Adjudication of Interest (Amendment) Law 7th Tammuz, 5736 (5th July, 1976) Legal Assistance to Foreign States (Amendment No. 3) Law 7th Tammuz, 5736 (5th July, 1976) Safety in Public Places (Amendment) Law 8th Tammuz, 5736 (6th July, 1976) Criminal Procedure (Amendment No. 8) Law 15th Tammuz, 5736 (13th July, 1976) Small Claims (Jurisdiction) Law 15th Tammuz, 5736 (13th July, 1976) Banking Ordinance (Amendment No. 11) Law 15th Tammuz, 5736 (13th July, 1976) State Service (Benefits) (Amendment No. 10) (Amendment) Law 15th Tammuz, 5736 (13th July, 1976) 323 Title Date of Adoption Local Authorities (Objection to Deter- mination of General Rate) Law 21st Tammuz, 5736 (19th July, 1976) Planning and Building (Amendment No. 6) Law 21st Tammuz, 5736 (19th July, 1976) Planning arid Building (Amendment No. 7) Law 21st Tariimuz, 5736 (19th July, 1976) Employment of Women (Amendment No. 5) Law 22nd Tammuz, 5736 (20th July, 1976) Dentists Ordinance (Amendment No. 6) Law 22nd Tammuz, 5736 (20th July, 1976) Collective Agreements (Amendment No. 3) •, Law 22nd Tammuz, 5736 (20th July, 1976) Maintenance of Cleanliness Law 28th Tammuz, 5736 (26th July, 1976) Defence Service (Amendment No. 12) Law 28th Tammuz, 5736 (26th July, 1976) Encouragement of Capital Investments (Amendment No. 14) Law 29th Tammuz, 5736 (27th July, 1976) National Insurance (Amendment No. 22) Law 1st Av, 5736 (28th July, 1976) Land Appreciation Tax (Transitional Pro• visions) Law 1st Av, 5736 (28th July, 1976) State Service (Benefits) (Amendment No. 15) Law 1st Av, 5736 (28th July, 1976) Emergency Regulations (Protection of Ed• ucational Institutions) (Amendment and Extension of Validity) Law 1st Av, 5736 (28th July, 1976) Broadcasting Authority (Temporary Pro• vision) Law 1st Av, 5736 (28th July, 1976) National Insurance (Amendment No. 23) Law 1st Av, 5736 (28th July, 1976) National Insurance (Amendment No. 24) Law 1st Av, 5736 (28th July, 1976) Ornamental Plants Production and Mar• keting Board Law 1st Av, 5736 (28th July, 1976) Public Bodies (Transactions) (Enforcement of Bookkeeping) Law 7th Av, 5736 (3rd August, 1976) Savings Loan Law 4th Elul, 5736 (30th August, 1976) 324 ALPHABETICAL INDEX OF LAWS Title Page A Absentees' Property (Compensation) (Amendment) Law, 5736—1976.... 222 Adjudication of Interest (Amendment) Law, 5736—1976 234 Advance Payment Law, 5736—1976 130 B Banking Ordinance (Amendment No. 10) Law, 5736—1976 208 Banking Ordinance (Amendment No. 11) Law, 5736—1976 242 Bankruptcy Ordinance (Amendment No. 6) Law, 5736—1976 110 Basic Law: The Army 150 Broadcasting Authority (Temporary Provision) Law, 5736—1976 269 Budget (Financial Year 1975) (No. 2) Law, 5736—1976 295 Budget (Financial Year 1976) Law, 5736—1976 302 C Capacity and Guardianship (Amendment No. 4) Law, 5736—1975 45 Chamber of Advocates (Amendment No. 9) Law, 5736—1976 126 Chamber of Advocates (Temporary Provisions No. 2) Law, 5736—1976.. 103 Civil Defence (Amendment No. 5) Law, 5736—1976 190 Collective Agreements (Amendment No. 2) Law, 5736—1976 134 Collective Agreements (Amendment No. 3) Law, 5736—1976 260 Collective Agreements (Temporary Provision) Law, 5736—1976 181 Commodities and Services (Control) (Amendment No. 5) Law, 5736—1976 226 Compulsory Education (Amendment No. 10) Law, 5736—1976 104 Council for Higher Education (Amendment No. 5) Law, 5736—1976 5 Criminal Procedure (Amendment No. 8) Law, 5736—1976 236 Customs Ordinance (Amendment No 6) Law, 5736—1976 14 D Defence (Finance) Regulations (Extension of Validity) Law, 5736—1975.. 4 Defence Loan (Approved Undertakings) (Amendment No. 2) Law, 5736— 1975 157 Defence Service (Amendment No. 12) Law, 5736—1975 265 Defence Stamp (Amendment and Extension of Period of Operation) (Amendment No. 12) Law, 5736—1976 156 Dentists Ordinance (Amendment No. 6) Law, 5736—1976 248 Development Loan (Amendment No. 14) Law, 5736—1976 96 Development Loan "(Amendment No. 15) Law, 5736—1976 234 325 Title Page E Emergency Labour Service (Amendment No. 2) Law, 5736—1975 100 Emergency- "Regulations (Areas Held by the Defence Army of Israel — Criminal Jurisdiction and Legal Assistance) (Continuance in Force) Law, 5736—1976 180 Emergency Regulations (Arrangements Following Change in Rate of Currency) (Extension of Validity) Law, 5736—1975 27 Emergency Regulations (Commodities and Services (Control) — Further Provisions) (Extension of Validity) Law, 5736—1976 90 Emergency Regulations (Commodities and Services (Control) — Further Provisions) (Extension of Validity) (No. 2) Law, 5736—1976 232 Emergency Regulations (Compulsory Payments) (Amendment and Ex• tension of Validity) Law, 5736—1975 42 Emergency Regulations (Protection of Educational Institutions) (Amend• ment and Extension of Validity) Law, 5736—1976 268 Emergency Regulations (Registration and Mobilisation of Equipment) (Extension of Validity) Law, 5736—1976 86 Employers' Tax (5735—1975) (Amendment) Law, 5736—1975 20 Employment of Women (Amendment No. 5) Law, 5736—1975 247 Encouragement of Capital Investments (Amendment No. 14) Law, 5736— 1975 277 Encouragement of Industry (Taxes) (Amendment No. 5) Law, 5736—1975 80 Encouragement of Saving, Income Tax Reductions and Guarantee of Loans (Amendment No. 4) Law, 5736—1976 158 Encouragement of Saving, Income Tax Reductions and Guarantee of Loans (Validation) Law, 5736—1976 207 Estate Duty (Amendment No. 6) Law, 5736—1975 84 Explosives (Amendment No. 2) Law, 5736—1975 26 F Fallen Soldiers' Families (Pensions and Rehabilitation) (Amendment No. 11) Law, 5736—1976 119 Family Law Amendment (Maintenance) (Amendment) Law, 5736—1976 99 Free Port Zones (Amendment) Law, 5736—1976 151 I Income Tax Ordinance (Amendment No. 2 of 5722—1962 (Amendment No.7) Law, 5736—1976 95 Income Tax Ordinance (Amendment No. 3 of 5723—1963) (Amendment No. 3) Law, 5736—1976 233 326 Title Page Income Tax Ordinance (Amendment No. 23) Law, 5736—1976 90 Income Tax Ordinance (Amendment No. 24) Law, 5736—1976 153 Inspection of Schools (Amendment No. 3) Law, 5736—1976 43 Inter-American Development Bank (Convention) Law, 5736—1976 156 Interim Budget (Financial Year 1976) Law, 5736—1976 299 Invalids (Pensions and Rehabilitation) (Amendment No. 9) Law, 5736— 1976..... 97 J Joint Investments Trust (Amendment No. 2) Law, 5736—1975 83 L Labour Courts (Amendment No. 6) Law, 5736—1976 186 Land Appreciation Tax (Transitional Provisions) Law, 5736—1976 265 Legal Assistance to Foreign States (Amendment No. 3) Law, 5736—1976 235 Loan (Insurance Companies) (Amendment No. 3) Law, 5736—1976 24 Local Authorities (Election and Tenure of Head and Deputy Heads) (Amendment) Law, 5736—1976 150 Local Authorities (Legal Advice) Law, 5736—1975 21 Local Authorities (Objection to Determination of General Rate) Law, 5736—1975 244 Local Authorities (Regulation of Guard-Service) (Amendment No. 2) Law, 5736—1976 92 Local Authorities (Television and Wireless Aerial Masts) Law, 5736—1976 9 M Maintenance of Cleanliness Law, 5736—1976 264 Medical Practitioners Ordinance (Amendment No. 4) Law, 5736—1976.. 159 Mikve Yisrael Agricultural School Law, 5736—1976 219 Municipalities Ordinance (Amendment No. 19) Law, 5736—1976 110 Municipalities Ordinance (Amendment No. 20) Law, 5736—1976 138 N National Defence Loan (5729—1969) (Amendment No. 6) Law, 5736—1975 23 National Insurance (Amendment No. 21) Law, 5736—1976 165 National Insurance (Amendment No. 22)-Law, 5736—1976 262 National Insurance (Amendment No. 23) Law, 5736—1976 270 National Insurance «(Amendment No. 24) Law, 5736—1976 271 Notaries Law, 5736—1976 190 O Ornamental Plants Production and Marketing Board Law, 5736—1976.. 273 327 Title Page P Parallel Tax (Amendment) Law, 5736—1976 179 Property Tax and Compensation Fund (Amendment No. 12) Law, 5736— 1976 182 Planning and Building (Amendment No. 6) Law, 5736—1976 245 Planning and Building (Amendment No. 7) Law, 5736—1976 246 Postal Bank (Amendment No. 3) Law, 5736—1975 3 Public Bodies (Elections) (Amendment) Law, 5736—1976 100 Public Bodies (Transactions) (Enforcement of Bookkeeping) Law, 5736— 1976 275 Purchase Tax (Goods and Services) (Amendment No 6) Law, 5736—1976 210 R Red Shield of David (Amendment) Law, 5736—1976 91 Reserve Service (Compensation) (Amendment No. 10) Law, 5736—1976 132 S Safety in Public Places (Amendment) Law, 5736—1976 236 Sale (Apartments) (Assurance of Investment of Persons Acquiring Apartments) (Amendment) Law, 5736—1976 130 Savings Loan Law, 5736—1976 176 Savings Loans Law, 5736—1976 294 Savings Loan (5735—1975) (Amendment) Law, 5736—1976 19 Services Import Tax Law, 5736—1976 112 Services Tax (Banking Institutions and Insurance Companies) (Amendment No. 4) Law, 5736—1976 127 Shipping (Seamen) (Amendment No. 2) Law, 5736—1976 187 Short-Term Loan (Amendment No. 11) Law, 5736—1976 23 Sick Pay Law, 5736—1976 202 Small Claims (Jurisdiction) Law, 5736—1976 240 State Service (Benefits) (Amendment No. 10) Law, 5736—1975 6 State Service (Benefits) (Amendment No. 10) (Amendment) Law, 5736— 1976 243 State Service (Benefits) (Amendment No. 11 and Transitional Provisions) Law, 5736—1975 7 State Service (Benefits) (Amendment No. 12) Law, 5736—1975 15 State Service (Benefits) (Amendment No. 14) Law, 5736—1975 164 State Service (Benefits) (Amendment No. 15) Law, 5736—1976 267 State Service (Discipline) (Amendment No. 4) Law, 5736—1975 18 Succession (Amendment No. 3) Law, 5736—1976 102 Succession (Amendment No. 4) Law, 5736—1976 152 328 Title Page T Tourist Services Law, 5736—1976 223 Traffic Ordinance (Amendment No. 13) Law, 5736—1976 95 Traffic Ordinance (Amendment No. 14) Law, 5736—1976 189 V Value Added Tax Law, 5736—1975 46 Vegetable Production and Marketing Board (Amendment No. 2) Law, 5736—1975 129 W Wage Protection (Amendment No. 11) Law, 5736—1976 105 Water (Amendment No. 6) Law, 5736—1976 137 World Zionist Organisation — Jewish Agency for Israel (Status) (Amend• ment) Law, 5736—1975 43 329 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 4010525.000מ3^22 ~~ ^'"" * משרד המשפטים (התימה מוסדית).