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Laws of the State of Israel LAWS OF THE STATE OF ISRAEL Vol. 29 5735 — 1974/75 FROM 23rd TISHRI, 5735 — 9.10.74 to 20th ELUL, 5735 — 27.8 Authorised Translation from the Hebrew Prepared at the Ministry of Justice PUBLISHED BY THE GOVERNMENT PRINTER JERUSALEM LAWS OF THE STATE OF ISRAEL Vol. 29 5735 — 1974/75 FROM 23rd TISHRI, 5735—9.10.74 to 20th ELUL, 5735—27.8.75 Authorised Translation from the Hebrew Prepared at the Ministry of Justice PUBLISHED BY THE GOVERNMENT PRINTER JERUSALEM CONTENTS Page Laws 3 Budget Laws 328 Index'of Laws in the Order of the Dates of Their Adoption by the Knesset 344 Alphabetical Index of Laws 349 EXPLANATIONS I.R. {!ton Rishmi) — The Official Gazette during the tenure of the Provisional Council of State Reshumot The Official Gazette since the: incep• tion of the Knesset Sections of Reshumot referred to in this translation: Yalkut Ha-Pirsumim — Government Notices Sefer Ha-Chukkim — Principal Legislation Chukkei Taktziv — Budgetary Legislation Kovetz — Subsidiary Legislation Ha-Takkanot Hatza'ot Chok — Bills Chukkei Taktziv — Budget Bills (Hatza'ot) Dinei Yisrael (from — The revised, up-to-date and binding No. 2: Dinei Hebrew text of legislation enacted Medinat Yisrael) before the establishment of the State (Nusach Chadash) — The Official Gazette of the Mandatory P.G. (Palestine Gazette) Government — The 1934 revised edition of Palestine Laws 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) LAND APPRECIATION TAX (AMENDMENT No. 5) LAW, 5735—1974* 1. In the Land Appreciation Tax Law, 5723—1963 *) (hereinafter Replacement of section 9 referred to as "the principal Law"), section 9 shall be replaced by the following section: "Additional tax 9. (a) The sale of a real estate right shall be from acquirer of real estate chargeable with additional tax. The addition shall be right or real a proportion of the sale value or a specific amount, estate association right. according to the type of sale or land, as the Minister of Finance may prescribe with the approval of the Finance Committee of the Knesset. (b) (1) A real estate association act shall be chargeable with the amount of additional tax leviable on the sale of a real estate right the value of which is a proportionate part — within the meaning of section 14(c) — of the aggregate value of the real estate rights owned by the assocation. (2) A real estate association act shall not be chargeable with stamp duty under the Stamp Duty on Documents Law, 5721—1961 2). (c) The additional tax shall be paid by the purchaser or the person on whom association rights are conferred. (d) The Minister of Finance may, with the approval of the Finance Committee of the Knesset, prescribe rules for the grant of exemption from the whole or part of the additional tax, and he may, * Passed by the Knesset on the 23rd Tishri, 5735 (9th October, 1974) and published in Sefer Ha-Chukkim No. 746 of the 2nd Cheshvan, 5735 (18th October, 1974), p. 2; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1125 of 5734, p. 207. 1) Sefer Ha-Chukkim of 5723, p. 156 — LSI vol. XVII, p. 193; Sefer Ha- Chukkim of 5725, p. 40— LSI vol. XIX, p. 41; Sefer Ha-Chukkim of 5727, p. 105— LSI vol. XXI, p. 193; Sefer Ha-Chukkim of 5728, p. 181 — LSI vol. XXII, p. 209; Sefer Ha-Chukkim of 5731, p. 80 — LSI vol. XXV, p. 76. 2) Sefer Ha-Chukkim of 5721, p. 64; LSI vol. XV, p. 57. with approval as aforesaid, prescribe different rules in respect of different classes of persons liable or different classes of land. (e) Additional tax shall for all purposes, except exemption under Chapter Six, the time for payment under section 91 and as regards section 114, be treated as tax. (f) The Minister of Finance may by regulations, with the approval of the Finance Committee of the Knesset, prescribe the time for the payment of the additional tax.". Replacement of 2. Section 9A of the principal Law shall be replaced by the fol- •״ • ! .section 9A lowing section: "Transfer 9A. (a) The Treasury shall transfer 60 per cent of authorities. anv tax and one third of ^ additional tax to the local authority in whose area the land in respect of which such tax or additional tax has been paid is situated. (b) Where the land is situated in the areas of several local authorities, the amount to be trans­ ferred as aforesaid shall be apportioned among them in accordance with the value of the land situated in the area of each.". Application and 3. (a) Where a person purchased a real estate right before the com- in int0 force of the rin pTo^skHB.1 S P cipal Law and his right has not yet been registered in the Land Register, he shall be liable to additional tax as specified hereunder; for this purpose, he may at any time make a declaration, and he shall do so before the registration of the right in the Land Register. (1) If he makes the declaration within two years from the date of publication of this Law, the additional tax shall be paid in accordance with the value of the real estate right on the day he acquired it and at the rate obtaining on the date of the declaration. (2) If he makes the declaration more than two years after the date of publication of this Law, the additional tax shall be paid in accordance with the value of the real estate right on the date of the declaration and at the rate obtaining on that date. 4 (b) Where a person purchased a real estate right between the coming into force of the principal Law and the date of publication of this Law and has not paid additional tax — whether or not he was liable to it — and his right has not yet been registered in the Land Register, or where a person purchased a real estate association right and has not paid additional tax, such person shall be liable to addi• tional tax as specified hereunder: (1) if he was exempt from additional tax under section 9 (f) of the principal Law as in force before being amended by the Land Appreciation Tax (Amendment No. 2) Law, 5727— 1967 1). the provisions of subsection (a) shall apply to him; (2) if he made a declaration before the publication of this Law, but he has not yet been assessed to additional tax or it has been decided that he is not liable to additional tax, the additional tax shall be in accordance with the smaller of the following two: (a) the value of the right on the date of the declaration and the amount of land transfer fee and additional fee, under the Local Authorities (Land Transfer Fee) Law, 5719—1959 2), leviable on the said date; (b) the value of the right, and the amounts of the addi• tional tax, on the date of publication of this Law; (3) if he did not make a declaration before the publication of this Law, he shall be liable to additional tax in accordance with the smaller of the following two: (a) the value of the right on the date of acquisition and the amount of the land transfer fee and additional fee under the Local Authorities (Land Transfer Fee) Law, 5719—1959, plus interest at the rate of 1 per cent in respect of every fifteen days from the date of acquisition to the date of payment; (6) the value of the right, and the amounts of the addi• tional tax, on the date of publication of this Law; (4) a person to whom paragraph (2) or (3) applies, other than a person who made a declaration after the 6th Tevet, 5734 (31st December, 1973), shall make a declaration within six months from the date of publication of this Law: Provided that a person who made a declaration before the said date *) Sefer Ha-Chukkim of 5727, p. 105; LSI vol. XXI, p. 193. z) Sefer Ha-Chukkim of 5719, p. 82; LSI vol. XIII, p. 84. shall make an abridged declaration in the form prescribed by the Director; (5) the provisions of this subsection shall not apply to a person liable to additional tax under an assessment not sub• ject to contestation or appeal. (c) For the purposes of subsections (a) (2) and (b), "value" means the amount which may be expected to be obtained from the sale of a real estate right by a willing seller to a willing purchaser. (d) Where a person liable to additional tax under subsection (b) does not pay it at the prescribed time, interest shall be added to it at the rate of 1 per cent in respect of every fifteen days of delay; and if he is also bound to make a declaration under subsection (b) (4) and does not make it at the prescribed time, interest shall also be added as aforesaid in respect of the period between the time for making the declaration and the time when it is made; section 94 of the principal Law shall not apply to a delay as aforesaid. (e) A person who has paid additional tax in accordance with an assessment made under the Land (Fees) Regulations, 5730—19701). shall be deemed to have paid the amount of additional tax due from him even if the transaction was not registered in the Land Register in due time.
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