Jerusalem – Israel’s Tax Authority says it wants a cut of gratuities traditionally offered to Jewish ritual circumcisors and a slice of the payments that private kosher inspectors usually pocket.
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A recent state comptroller’s report said unreported payments for such religious services could account for tens of millions of dollars of income kept off the books while the Israeli state struggles with a large budget deficit and high debt.
In a circular warning rabbis and others in the so-called religious services industry, the Authority said it would seek out this hidden revenue in assessing their tax bills.
“You can’t come later and say you didn’t know about it,” an Authority spokeswoman said.
There is no compulsory fee for circumcision in Israel when performed by a state-certified “mohel” or circumcisor. But it is customary for parents of newborn Jewish boys to offer a gratuity up to 1,000 shekels ($255), an amount recommended by the chief rabbinic council.
Tipping is also the norm for rabbis who officiate at weddings as part of a free service underwritten by the state. The Authority spokeswoman said they too will be targeted as part of the new enforcement campaign.
Israel has a national authority to certify that food products are kosher, but some communities – mostly among the ultra-Orthodox – ask their own rabbis to confirm privately that food meets their stricter religious standards. A gratuity would also be in order there.
There are also Kabbalah mystics around the country whom devotees seek out for blessings, personal guidance and even financial advice. A session with them usually ends with a private donation as well.
In the US, tips are reportable and taxable. Gifts, however, aren’t, to the recipient. If Israeli tax law is the same and there is no obligation to pay a mohel, rabbi or shadchan, it would seem difficult to prove tax evasion where there has merely been gift giving. What they need to do is arrange for the payers to pay such amounts as fees either to the individual or the Rabbinate and the Rabbinate employ the rabbis. That way you don’t end up with one segment of the population living tax free on an anomaly that their source of support isn’t classified as income.
There’s no way Israeli Tax Authority can prove that any Rabbi gets paid for Milah, wedding, etc.
It’s easy to prove. You look at their standard of living, just as was done with Capone. What I’m thinking is “up to 1,000 shekels ($255)” wow, that’s a bargain. In the US, you’re expected to give a lot more than that unless you’re a kli kodesh. Anyway, let’s hope the IRS doesn’t wise up to cash transactions in the US.
I would hope that since all of the target group are religious Jews proper record keeping and prompt payment will be forthcoming. If not then they are not religious. Are their services then halachically acceptable? Is their eidut kosher? Is their meila kosher? Just thinking outloud