Smotrich’s proposal

Bayit Yehudi MK Bezalel Smotrich’s proposal to revoke tax benefits for NGOs that work “against the state” (“Knesset members debate tax breaks for non-governmental organizations,” May 16) is, in principle, correct. He would remove both their exemption from paying tax on the income they receive, and the Sec. 46 privilege, which allows their donors to deduct contributions from their personal income tax.

But some of the proposal’s critics also have a point, so I’d like to offer an alternative approach.

The bill is drafted as an amendment to Sec 219B of the Income Tax Ordinance, which sets forth the criteria for public organizations entitled to tax breaks. It would exclude those NGOs that work against the state or engage in delegitimization. Since these criteria are ideological, it opens the proposal to charges of subjectivity and restrictions on freedom of speech. Even professionals from the Tax Authority are concerned. However, these charges can be overcome with ease.

Virtually all of the organizations that fit Smotrich’s criteria are funded by foreign governments and are therefore defined as “foreign agents” under several of our laws, the latest one adopted in 2016. These laws impose various sanctions on foreign agents, including the obligations of transparency and disclosure. It would be easier to amend Sec 219B to simply disqualify “foreign agents” from receiving any tax breaks, either on their own income or for the benefit of their donors.

No foreign-funded NGO is entitled to tax breaks funded by Israel citizens, regardless of its ideology. JAN SOKOLOVSKY

Jerusalem