LawTax Law
Fines, Fees and Costs Collection Authority Law, 5755-1995
חוק המרכז לגביית קנסות, אגרות והוצאות, תשנ"ה-1995
Published: 1995-04-06Consolidated Hebrew text as of 2026-07-16 · Last amended 2026-07-28✓ Amendment status checked against the Knesset legislation record on 2026-09-28
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More
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Definitions§
1.
In this Law –
"court" – includes a Labour Court, a religious court, a Chief Execution Officer under the Execution Law, 5727-1967 (hereinafter – the Execution Law), but does not include a military court within the meaning of the Military Justice Law, 5715-1955;
"collector" – an office holder under section 5 of the Execution Law, and also a public employee appointed by the Director of the Centre for the purpose of collecting a debt under this Law;
"public body" – one of the following –
(1)a Government ministry;
(2)a local authority;
(3)the National Insurance Institute, "Bezeq", the Israeli Company for Communications Ltd., the Israel Electric Corporation Ltd., the Jerusalem District Electric Corporation Ltd.;
(4)a corporation performing a public function by law, which the Minister of Justice has designated by Order, with the approval of the Constitution, Law and Justice Committee of the Knesset;
"arrears charges", "linkage differentials" and "shekel interest" – as defined in the Interest and Linkage Law, 5721-1961;
"service" – service under Chapter XIX of the Civil Procedure Regulations, 5779-2018, or by a method in respect of which the conditions set out in sections 3f or 3g of the Digital Communication with Public Bodies Law, 5778-2018 are satisfied;
"linkage differentials and interest" – (Repealed);
"debt" – one of the following, including linkage differentials, interest and arrears charges added thereto by law, and excluding a debt paid to a local authority that is not a debt as referred to in paragraph (16a) –
(1)a fine imposed by a court, paid to the State Treasury or to a fund;
(2)an administrative fine within the meaning of the Administrative Offences Law, 5746-1985 (in this definition – administrative fine), even if it is paid to a corporation established by law that the Minister of Justice has designated by Order, with the approval of the Constitution, Law and Justice Committee of the Knesset;
(3)a fine for a fixed-penalty offence within the meaning of section 228 of the Criminal Procedure Law [Consolidated Version], 5742-1982;
(4)a civil fine or monetary sanction prescribed in legislation;
(5)a fine within the meaning of the Contempt of Court Ordinance;
(5a)an undertaking to refrain from an offence, within the meaning of section 72 of the Penal Law, 5737-1977 (in this Law – the Penal Law), and the surety therefor if given, provided that a ground for their collection has arisen under section 76 of that Law;
(5b)a security for the deferral of execution of a sentence given under section 87 of the Penal Law, provided that the court has given a forfeiture decision in respect thereof;
(5c)a security as defined in section 41 of the Criminal Procedure Law (Enforcement Powers – Arrests), 5756-1996 (in this Law – the Criminal Procedure Law (Enforcement Powers – Arrests)), given under Section F of Chapter II of that Law, provided that the court has given a forfeiture decision in respect thereof;
(6)compensation within the meaning of –
(a)section 77 of the Penal Law and section 38 of the Criminal Procedure Law (Enforcement Powers – Arrests);
(b)section 26(8) of the Youth (Adjudication, Punishment and Modes of Treatment) Law, 5731-1971;
(c)section 11(1) and (3) of the Probation Ordinance [New Version], 5729-1969;
(7)a fee under –
(a)the Courts Law [Consolidated Version], 5744-1984;
(b)the Execution Law;
(c)the Judges Law, 5715-1955;
(d)the Druze Religious Courts Law, 5723-1962;
(e)the Qadis Law, 5721-1961;
(f)the Labour Courts Law, 5729-1969;
(f1)the Elections (Methods of Propaganda) Law, 5719-1959;
(g)the Law listed in the Fourth Schedule; a debt by virtue of this sub-paragraph shall not be collected by means of the Tax Ordinance (Collection) even if that Ordinance applies to it;
(8)costs awarded by a court or a body empowered by law to impose a civil fine or monetary sanction, in favour of the State Treasury or a fund;
(9)double the costs incurred as detailed below:
(a)for the purpose of carrying out an instruction, notice or order in respect of a nuisance under section 71b of the Public Health Ordinance, 1940;
(b)for the purpose of carrying out an order for the removal of a nuisance under section 11b(b) of the Nuisance Prevention Law, 5721-1961;
(c)for the purpose of demolishing, removing or disposing of a sign under section 8(b) of the Roads (Signposting) Law, 5726-1966;
(d)for the purpose of carrying out an order for keeping clean under section 13b(b) of the Cleanliness Law, 5744-1984;
(e)for the purpose of carrying out an order for the removal of poisons or an order to restore the original state, under section 16a(b) of the Hazardous Substances Law, 5753-1993;
(f)for the purpose of carrying out an order for the removal of a radiation source, under section 15 of the Non-Ionising Radiation Law, 5766-2005;
(g)for the purpose of carrying out orders under sections 45, 46 and 48 of the Clean Air Law, 5768-2008;
(h)for the purpose of carrying out an administrative order in respect of asbestos, under section 49 of the Prevention of Asbestos and Harmful Dust Hazards Law, 5771-2011;
(10)removal costs determined in a removal order under the provisions of section 13 of the Entry into Israel Law, 5712-1952;
(11)payments owed by persons entitled to representation under section 23 of the Public Defender Law, 5756-1995;
(12)a sum to be transferred to the State Treasury under section 28y2 of the Political Parties Law, 5752-1992;
(13)a sum to be paid to the State under law to which the Tax Ordinance (Collection) applies, provided that the Minister of Justice and the Minister concerned (hereinafter – the Ministers) have approved its collection on the proposal of the Director of the Centre and the accountant of the Government ministry concerned; notice of such approval shall be published in Reshumot (Official Gazette); where the Ministers have given such approval, the debt shall not be collected by means of the Tax Ordinance (Collection);
(14)a tax, fee, levy or other compulsory payment to be paid to the State under law, the amount of which is prescribed in legislation, and to which the Tax Ordinance (Collection) does not apply, provided that the Minister of Justice, with the consent of the Minister concerned, has designated it by Order, with the approval of the Constitution, Law and Justice Committee of the Knesset, and after the Ministers have approved its collection by means of the Centre, on the proposal of the Director of the Centre and the accountant of the Government ministry concerned;
(15)a sum to be transferred to the State Treasury under section 10c(xv) of the Political Parties Financing Law, 5733-1973;
(16)a fine imposed by a court or an administrative fine, paid to the fund of a local committee within the meaning of the Planning and Building Law, 5725-1965 (in this Law – local committee), provided that the Minister of Justice has approved its collection on the proposal of the Director of the Centre and the chairperson of the local committee; notice of such approval shall be published in Reshumot (Official Gazette); where the Minister has given such approval, the fine shall not be collected by means of the Tax Ordinance (Collection);
(16a)a fine imposed by a court, an administrative fine, a fine for a traffic violation under the Administrative Traffic Violations Law, 5784-2024, and also costs awarded by a traffic court under that Law or a fine as referred to in paragraph (3), paid to the fund of a local authority, provided that the Minister of Justice has approved their collection on the proposal of the Director of the Centre and the head of the local authority; where the Minister has given such approval, the fine or costs referred to shall not be collected by means of the Tax Ordinance (Collection); the Minister may revoke the approval at any time, and shall revoke it at the request of the head of the local authority unless he considers that there are reasons justifying otherwise; notice of approval and notice of revocation of approval as aforesaid shall be published in Reshumot (Official Gazette);
(16b)a fine or costs imposed by a disciplinary committee, an ethics committee or a tribunal by virtue of a Law listed in the Fifth Schedule;
(17)any other debt prescribed in a law as subject to the provisions of this Law;
"debtor" – a person who, at the time prescribed by law or by a judgment of a court, has not paid a debt, in whole or in part;
"information" – one of the following –
(1)data from a register required to be maintained by law in respect of a person's property;
(2)data from a database within the meaning of the Privacy Protection Law, 5741-1981, insofar as they relate to the rights of a debtor, including bank account numbers of any type and other identifying particulars of a bank account, insofar as they relate to the debtor's rights in the bank account;
(3)the debtor's place of employment;
(4)the following identity particulars: the name, the previous name, the identity number and particulars of an Israeli or foreign passport, the address including a previous address and the telephone number;
(5)in respect of a debtor that is a corporation, the fact that the corporation is active and has a business turnover;
(6)data indicating the location of the debtor;
"fund" – a fund established by law under the responsibility of a Government ministry, to which debt monies have been designated and which the Minister of Justice has designated by Order with the approval of the Constitution, Law and Justice Committee of the Knesset;
"Registrar for Centre Matters" – within the meaning of section 6a(a).
"arrears supplement" – a late payment fine or a similar payment by whatever name called, in respect of non-payment on time, including an arrears supplement under section 67 of the Penal Law, 5737-1977, and arrears charges.
The Fines, Fees and Costs Collection Authority§
2.
(a)The Minister of Justice shall establish a fines, fees and costs collection authority (in this Law – the Authority), whose function is to collect debts; he shall appoint, in consultation with the Minister of Finance, a director for the Authority.
(b)The Director of the Authority may delegate his powers to his deputy, and may appoint him to act as his alternate in his absence.
(b1)The Director of the Authority may also delegate his powers to an employee of the Authority who has at least five years of professional seniority and who has undergone appropriate training in the field of the powers to be vested in him, provided that he shall not delegate to such an employee the following powers:
(1)the power to appoint a collector;
(2)the power to make a proposal for the collection of a debt through the Authority, as referred to in paragraphs (13), (14), (16) or (16a) of the definition of "debt";
(3)the power to make a proposal to accept payment under section 2b;
(4)the power to apply to the Registrar for Authority matters with a request under sections 5(d), 7, 7a or 8;
(5)the power to prescribe rules under section 5b(b);
(6)the power to order the execution of substituted service under section 5(c).
(c)The Director of the Authority shall also have the powers vested in his deputy; the deputy director of the Authority shall have the powers vested in a collector.
Shekel Interest and Arrears Charges§
2a.
In the absence of another provision in law or in a decision of a court, in respect of arrears in the payment of a debt, shekel interest and arrears charges shall be added to the amount of the debt from the date prescribed by law or in the decision, as the case may be, and if no such date has been prescribed, from the date of the decision, in each case until the date of actual payment, and the provisions of the Interest and Linkage Law, 5721-1961 shall apply, with the necessary modifications.
Acceptance of Payment for a Debt Before Its Due Date§
2b.
(a)The Authority may accept from a person payment for a debt before its due date, provided that the Minister of Justice and the Minister concerned have approved its acceptance pursuant to a proposal of the Director of the Authority and the accountant of the relevant body; notice of such approval shall be published in Reshumot (Official Gazette).
(b)Information that has reached the Authority under subsection (a) shall be used only for the purpose of accepting payment as referred to in that subsection.
(c)The powers under this Law, other than the power to accept payment for a debt under this section, shall apply in respect of a debt as referred to in subsection (a) only after its due date has passed.
Collection of a Debt§
3.
(a)A debt that has not been paid on its due date shall be collected through a collector appointed by the Director of the Authority.
(b)A debt shall be collected in accordance with the provisions of this Law and, with the necessary modifications, in accordance with the provisions of the Tax (Collection) Ordinance; for this purpose, the debt shall be deemed a tax, and the powers of a tax collector, a collection officer and a collection superintendent under that Ordinance shall vest accordingly in the collector, the deputy director of the Authority and the Director of the Authority, respectively.
(c)The Director of the Authority shall determine what proceedings are to be taken for the collection of a debt that the Authority is charged with collecting, and the order in which they are to be taken.
(d)Where a person is liable for debts of different types as detailed in the definition of "debt", the order of allocation of monies paid to the account of each debt shall be pro rata to the amounts of the debts, unless the debtor has requested that a payment be allocated to the account of a specific debt.
(d1)Notwithstanding the provisions of subsection (d), where a person is also liable for a debt that is compensation as referred to in paragraph (6) of the definition of "debt", monies paid shall be allocated to the account of the debt first to the account of that compensation debt.
(e)Nothing in the provisions of this section shall derogate from other methods of collection prescribed in legislation, unless expressly provided otherwise in law.
(f)For the purpose of collecting a debt under subsection (b), the Director of the Authority may also seize a vehicle of the debtor parked in a public place, provided that the following are met, as the case may be:
(1)the vehicle is parked adjacent to the debtor's premises;
(2)if the vehicle is not parked adjacent to the debtor's premises – the following conditions are met:
(a)prior to the seizure, the vehicle was seized by registration at the Licensing Authority and notice thereof was sent to the debtor;
(b)the Director of the Authority made a genuine effort to notify, shortly before the seizure, the debtor, and if the debtor is a corporation – the person who regularly drives the vehicle, the debtor's legal representative or the corporation's registered office, of the intention to seize the vehicle;
(c)the vehicle is not registered as a vehicle of a person with a disability according to the registration at the Licensing Authority.
(g)Where the Enforcement and Collection Authority has received notice from an insurer of a change in the status of a seized vehicle under section 108b of the Insurance Supervision Law, the Director of the Authority may impose a third-party garnishment order on the debtor's right to insurance proceeds held by the insurer.
(h)In proceedings for the realisation of insurance proceeds that are in lieu of a stolen vehicle or a total-loss vehicle on which a garnishment order has been imposed as referred to in subsection (g), the Director of the Authority shall consider considerations similar to those he would have considered in proceedings for the realisation of a seized vehicle, with the necessary modifications; repayment of the debt through the realisation of the insurance proceeds is subject to the transfer of ownership of the vehicle to the insurer by virtue of a power of attorney from the debtor for the transfer of ownership of the vehicle, or by virtue of an order of the Registrar for Authority matters directing the Licensing Authority accordingly, unless exceptional circumstances exist that justify otherwise, and for reasons that shall be recorded.
(i)Where 60 days have elapsed from the date on which notice was received under section 108b of the Insurance Supervision Law, the Director of the Authority shall cancel the garnishment order and shall notify the Licensing Authority and the parties concerned accordingly.
(j)In this section –
"Insurance Supervision Law" – the Financial Services Supervision Law (Insurance), 5741-1981;
"insurer" – as defined in the Insurance Supervision Law;
"total-loss vehicle" – as defined in section 108b of the Insurance Supervision Law.
Compensation to a Victim of an Offence§
3a.
(a)Where a court has ordered a defendant to pay compensation as referred to in paragraph (6) of the definition of "debt" to a victim of an offence listed in the Third Schedule, the Authority shall pay the victim the amount of compensation awarded, up to a ceiling of NIS 10,000, less the amount paid by the debtor, at the time and under the conditions prescribed by the Minister of Justice, with the approval of the Constitution, Law and Justice Committee of the Knesset.
(b)Where the Authority has paid compensation to a victim under subsection (a), every amount paid to the account of the debt, up to the amount of compensation paid by the Authority as aforesaid, shall be allocated in favour of the State Treasury, together with the Accountant General's interest within the meaning of the notice regarding the rate of the Accountant General's interest as published in Reshumot (Official Gazette).
(c)The Minister of Justice, with the consent of the Minister of Finance and with the approval of the Constitution, Law and Justice Committee of the Knesset, may, by Order –
(1)add offences to the Third Schedule;
(2)increase the amount referred to in subsection (a).
Collection Costs and Payment of the Debt§
4.
(a)The costs of taking collection proceedings under this Law, as shall be prescribed, shall be borne by the debtor, and their legal status, for all purposes, shall be the same as that of the debt.
(b)Monies paid on account of the debt as a result of proceedings under this Law shall be allocated first to the account of the costs under subsection (a), and thereafter to the account of the debt in the following order: arrears supplement, interest and principal including linkage differentials.
(c)The provision of subsection (b), regarding the allocation of a payment to the account of the costs first, shall not apply to a debt that is compensation as referred to in paragraph (6) of the definition of "debt" in section 1.
Payment Demand§
5.
(a)No proceedings shall be taken to collect a debt under this Law before a demand for payment of the debt has been sent to the debtor simultaneously by two methods – one by ordinary post and the other by service – and in which the date by which the debtor is to pay the debt shall be stated (hereinafter – the payment demand).
(b)Without derogating from the provisions of subsection (a), where a debtor has approached the Centre in connection with a particular debt and the details of the approach indicate that the debtor has received the payment demand, the debtor shall be deemed to have been served with the payment demand, unless the Director of the Centre has directed otherwise; at the time of the debtor's approach to the Centre as aforesaid, the updated particulars of the debt and an explanation of the significance of the approach as referred to in this subsection shall be provided to the debtor, as far as possible.
(c)
(1)Where the Director of the Centre has found that service cannot be effected under subsection (a), the Director may apply to the Registrar for Centre Matters with a request to order that substituted service of the additional payment demand be effected as referred to in section 164 of the Civil Procedure Regulations, 5779-2018; an application under this subsection shall be submitted in writing and a declaration shall be attached thereto for the purpose of verifying the reason preventing the effecting of service;
(2)Notwithstanding the provisions of paragraph (1), the Director of the Centre or a deputy thereof may order that substituted service of the payment demand be effected as referred to in section 164 of the Civil Procedure Regulations, 5779-2018, if all of the following conditions are met:
(a)a fine has been imposed by the court, and the debtor was present at the time of sentencing;
(b)two years have not elapsed since the sentencing;
(c)it was not possible to effect service of the payment demand on the debtor at any of the debtor's addresses that the Director of the Centre or an employee of the Centre whom the Director has authorised for that purpose is able to obtain under section 6;
(3)The Director of the Centre or a deputy thereof shall order the manner of effecting substituted service as referred to in paragraph (2) in the manner that appears to the Director or deputy to be most appropriate for bringing the payment demand to the knowledge of the debtor, after examining the characteristics of the debtor and the reasons for preventing service, and shall give reasons for the decision;
(4)The Director of the Enforcement and Collection Authority, as defined in section 1 of the Execution Law, shall report to the Constitution, Law and Justice Committee of the Knesset, annually, on the manner of implementation of paragraphs (2) and (3).
(d)
(1)Notwithstanding the provisions of subsection (a), where the Director of the Centre has found that one of the following obtains, the Director may apply to the Registrar for Centre Matters with a request to obtain approval to take proceedings for the collection of a debt before the payment demand has been sent to the debtor (in this section – approval to take proceedings before dispatch of a payment demand):
(a)there is a reasonable concern that the debtor will conceal assets upon receipt of the payment demand;
(b)there is a reasonable concern that the debtor is about to leave the country;
(2)To an application as referred to in paragraph (1), the Director of the Centre shall attach a declaration for the purpose of verifying the facts contained in the application;
(3)The Registrar for Centre Matters shall grant approval to take proceedings before dispatch of a payment demand if satisfied that the circumstances of the matter justify it.
A Decision Requiring Clarification§
5a.
(a)Where the Director of the Authority is of the opinion that a decision regarding the payment of a debt, or part thereof, requires clarification for the purpose of its execution, he, or a person authorised by him for that purpose, may apply in writing to the court or to the body that gave the decision, as the case may be, in order to obtain clarification; such an application shall not operate to delay the execution of that part of the decision in respect of which clarification has not been requested.
(b)Where a hearing has taken place on a request for clarification as referred to in subsection (a), the court or the body before which the request is being heard shall summon the debtor.
Authority of the Director to Spread or Defer Payment of a Debt§
5b.
(a)The Director of the Authority may, upon the application of a debtor, spread or defer payment of a debt, in one of the following:
(1)in accordance with rules made under subsection (b);
(2)if satisfied that there were reasonable grounds for the non-payment of the debt, in whole or in part, on time, or that special personal circumstances of the debtor exist that justify the spreading or deferral of the payment as aforesaid.
(a1)Where the Director has spread or deferred a debt into payments as referred to in subsection (a), no arrears supplement shall be added to the debt in respect of the period during which the spreading or deferral as aforesaid applies; should the debtor cease to make the payments as aforesaid and the spreading or deferral of payment of the debt is cancelled, an arrears supplement shall be added, as the case may be, from the date of the last payment under the spreading or deferral that was not paid.
(b)The Director of the Authority may prescribe in rules provisions with respect to the spreading or deferral of payment of a debt under the provisions of this Section; the rules shall be published in Reshumot (Official Gazette).
Authority to Exempt from Payment of Interest and Arrears Supplement§
5c.
The Director of the Authority may exempt a debtor, upon the debtor's application, from payment of interest and an arrears supplement, in whole or in part, that have been added by law to a debt as defined in section 1, except under paragraph (6) of the definition of "debt", if satisfied that there were reasonable grounds for the non-payment of the debt, in whole or in part, on time, that the debtor has paid the debt or part thereof in accordance with a spreading or deferral prescribed for the debtor under section 5b, or that special personal circumstances of the debtor exist that justify an exemption as aforesaid.
Disclosure of Information§
6.
(a)The Director of the Authority, or an employee of the Authority whom the Director has authorised for that purpose, may require a public body to provide information about a debtor for the purpose of collecting a debt or for the purpose of locating the debtor's assets, to the extent required for those purposes.
(b)Notwithstanding any law, the public body shall furnish the information it has been requested to furnish under subsection (a) and that is in its possession.
(b1)Where the Director of the Authority has determined that a debtor's address is not the debtor's correct address, the Director may require the entities listed in the First Schedule to furnish the debtor's address, except for the address of a debtor whose address must not be disclosed for reasons of protection of the debtor as set out in the Second Schedule.
(b2)
(1)The Director of the Authority may require a licensed provider, as defined in the Communications Law (Telecommunications and Broadcasts), 5742-1982 (hereinafter – a licensed provider), that provides a telephony service as defined in that Law, to furnish the debtor's mobile or landline telephone numbers, and such information may be furnished through another entity acting on behalf of the licensed provider that provides an information service for the purpose of enquiring into telephone numbers, provided that telephone numbers of a debtor who has requested of the licensed provider that such numbers remain confidential shall not be furnished, all in accordance with the provisions under paragraph (3);
(2)the telephone numbers referred to in paragraph (1) may be used by the Authority for the purpose of contacting the debtor in order to notify the debtor of the collection proceedings being conducted against the debtor;
(3)the Minister of Justice shall prescribe provisions with respect to paragraph (1), in order to prevent a licensed provider or another entity acting on its behalf from being exposed to information about the identity of a debtor upon the furnishing of telephone numbers as referred to in that paragraph;
(4)notification by telephone of collection proceedings under this subsection shall not constitute service of a demand for payment of the debt under section 5.
(b3)The Minister of Justice, with the approval of the Constitution, Law and Justice Committee of the Knesset, may prescribe by Order –
(1)additional entities to be included in the First Schedule;
(2)additional addresses to be included in the Second Schedule.
(b4)The Director of the Authority or an employee of the Authority whom the Director has authorised for that purpose may require information under subsections (a) to (b2) concerning the contact details of a victim of an offence, the victim's guardian, estate administrator, heirs or family members, as the case may be, for the purpose of transferring compensation moneys collected from the debtor on behalf of that victim or compensation to which the victim is entitled under section 3a, and the provisions of those subsections shall apply, with the necessary modifications, to this subsection.
(c)Information as aforesaid shall be used only for the purpose of implementing this Law; information received under subsection (b4) shall be used only for the purpose referred to in that subsection and shall be deleted upon completion of its use.
Registrars for Authority Matters§
6a.
(a)The Minister of Justice shall designate, in each district, an execution office whose registrars shall also serve as registrars for Authority matters and shall have the powers vested in registrars for Authority matters under this Law; notice thereof shall be published in Reshumot (Official Gazette); in exercising the powers as aforesaid, the execution registrar shall serve as a registrar for Authority matters.
(b)The provisions of sections 3a to 3d and 73a of the Execution Law shall apply to a registrar for Authority matters and to the proceedings before the registrar, with the necessary modifications; for this purpose, the supervisor of registrars and the person responsible for investigating complaints, as defined in the Execution Law, shall serve as the supervisor of registrars for Authority matters and the person responsible for investigating complaints relating to registrars for Authority matters.
(c)In every execution office, including an office not designated under subsection (a), it shall be possible to submit applications and documents and to obtain information in files opened under sections 7 and 7a of this Law.
(d)In this section, "district" – a district in accordance with the jurisdictional areas of the District Courts designated by the Minister of Justice under section 33 of the Courts Law [Consolidated Version], 5744-1984.
Appointment of a Receiver by the Registrar for Authority Matters§
7.
(a)The Director of the Authority may, where the Director considers it necessary or beneficial for the purpose of collecting a debt, apply to the registrar for Authority matters in the district in which the debtor's place of residence or place of business is located, with a request that the registrar appoint a receiver for a specific asset of the debtor, provided that the debt or the cumulative debts of the debtor exceed NIS 50,000.
(b)Where the registrar for Authority matters to whom the Director of the Authority has directed a request under subsection (a) has found that the condition referred to in that subsection is met in respect of the debt or cumulative debts of the debtor and that there is a need or benefit in appointing a receiver for the purpose of collecting the debt or debts, the registrar may appoint a receiver for the debtor's asset.
(c)In proceedings under this section, the registrar for Authority matters shall afford the parties an opportunity to present their arguments and to submit their evidence in writing or orally, in the form, at the time and in the manner prescribed under section 7e.
(d)Where the debtor has argued in a hearing or in writing that the debtor lacks the ability to pay the debt, has requested a spreading or deferral of payment of the debt, or has requested an exemption from payment of an arrears supplement, the provisions of section 7d shall apply, with the necessary modifications.
(e)The provisions of sections 38 to 42 and Chapter V of the Execution Law shall apply to the appointment and operation of the receiver, with the necessary modifications.
(f)Where the debt has been repaid, the registrar for Authority matters shall order the termination of the receiver's function and the cancellation of all proceedings against the debtor.
(g)The Minister of Justice, with the approval of the Constitution, Law and Justice Committee of the Knesset, may amend by Order the amount prescribed in subsection (a).
Imposition of Restrictions by the Registrar for Authority Matters§
7a.
(a)The Director of the Authority may apply to the registrar for Authority matters in the district in which the debtor's place of residence or place of business is located, with a request to impose on the debtor a restriction as referred to in subsection (c), one or more, for the purpose of collecting the debt, where the conditions set out below are met, provided that the Director shall not submit such a request if satisfied that the debtor lacks the ability to pay the debt:
(1)the Director of the Authority is satisfied that the imposition of the restriction on the debtor is justified in the circumstances of the matter, having regard to the degree of harm to the debtor, and has found that it is not possible to take other proceedings for the collection of the debt whose degree of harm to the debtor is lesser, taking into account the proceedings taken for the purpose of collecting the debt, including proceedings to obtain information about the debtor;
(2)the debt has not been repaid within one year from the date on which a demand for payment of the debt was fully served on the debtor in accordance with the provisions of section 5, and in respect of compensation as referred to in paragraph (6) of the definition of "debt" – within three months from the date of pronouncement of the sentence;
(3)the debtor has not submitted an application under section 5b, 5c or 7d, or such application has been refused, or the debtor is not complying, without reasonable justification, with the payments prescribed for the debtor under those sections;
(4)the debt or the cumulative debts of the debtor that meet the conditions prescribed in paragraphs (2) and (3) exceed NIS 5,000, and in respect of compensation as referred to in paragraph (6) of the definition of "debt" – compensation in the amount of at least NIS 2,000.
(b)The Minister of Justice, with the approval of the Constitution, Law and Justice Committee of the Knesset, may amend by Order the periods and amounts prescribed in subsection (a)(2) and (4).
(c)Where the registrar for Authority matters to whom the Director of the Authority has directed a request under subsection (a), having afforded the debtor an opportunity to present arguments before the registrar, is satisfied that the conditions referred to in that subsection are met in respect of the debtor and that the imposition of the restriction on the debtor is justified in the circumstances of the matter, having regard to the degree of harm to the debtor, taking into account the proceedings taken for the purpose of collecting the debt, including proceedings to obtain information about the debtor, to the extent required, and has found that it is not possible to take other proceedings for the collection of the debt whose degree of harm to the debtor is lesser, the registrar may impose on the debtor a restriction, one or more, as detailed below, in accordance with the request of the Director of the Authority, all for a period and on conditions to be determined, provided that the registrar shall not impose such a restriction if satisfied that the debtor lacks the ability to pay the debt:
(1)restricting the debtor from obtaining an Israeli passport or a travel document under the Passports Law, 5712-1952, from holding such a passport or travel document, or from renewing their validity, provided that they shall be valid for the purpose of returning to Israel; this restriction shall not be imposed if the registrar for Authority matters is satisfied that the departure from Israel is necessary for reasons of the health of the debtor or of a family member dependent on the debtor;
(2)staying the debtor's departure from the country; this restriction shall not be imposed if the registrar for Authority matters is satisfied that the departure from Israel is necessary for reasons of the health of the debtor or of a family member dependent on the debtor;
(3)restricting the debtor as a special restricted customer, within the meaning of section 3c of the Cheques Without Cover Law, 5741-1981;
(4)
(a)restricting the debtor from making use of a charge card, as defined in the Execution Law; for this purpose, such a restriction shall have the same effect as termination of a payment services contract, as defined in the Payment Services Law, 5779-2019, with respect to the issuance of the charge card, by notice of the debtor; notice thereof shall be given to the issuer in the manner to be prescribed, and the date of receipt of the notice shall be deemed the date of termination of the contract, notwithstanding the provisions of section 6(a)(1) of that Law;
(b)a restriction as referred to in sub-paragraph (a) shall not be regarded as termination of a contract by notice of the debtor, for the purpose of provisions in the contract under which the customer is liable for any payment by reason of the very shortening of the period of use of the charge card, such as a charge on the debtor for payment in respect of conditional-use gifts received by the debtor from the issuer;
(5)restricting the debtor from founding a corporation or from being an interested party in a corporation, directly or indirectly, including together with another or through another, and if the debtor participated in the founding of a corporation or was an interested party in a corporation – giving directions with respect to the cessation of the debtor's position or membership in the corporation; nothing in the provisions under this paragraph or in their breach shall derogate from the validity of an incorporation or legal act of a corporation in which the debtor was a founder or an interested party as aforesaid; for this purpose, "interested party" – within the meaning of the Securities Law, 5728-1968, and in respect of a corporation that has no share capital – a person who is a member of the corporation or a member of the committee or management of that corporation;
(6)(Repealed).
(d)A restriction as referred to in subsection (c) shall not be imposed unless the debtor has been summoned to a hearing on the matter, by a summons sent by registered post, and the parties have been afforded an opportunity to present their arguments and to submit their evidence before the registrar for Authority matters; the summons to the hearing shall state that the Director of the Authority has requested to impose on the debtor a restriction, one or more, unless the debt is repaid, and also that the debtor is entitled to request, under section 5b, 5c or 7d, a spreading or deferral of payment of the debt or an exemption from payment of an arrears supplement.
(e)Where the debtor has argued in a hearing or in written arguments that the debtor lacks the ability to pay the debt, or has requested a spreading or deferral of payment of the debt or an exemption from payment of an arrears supplement, the provisions of section 7d shall apply, with the necessary modifications.
Limitation on Restriction Regarding a Charge Card§
7b.
(a)A restriction under section 7a shall not apply to an immediate charge card, as defined in the Execution Law, 5727-1967, with which transactions may be carried out against a credit balance only, or to a charge card as defined in that Law in which the monetary value loaded thereon is only that of a benefit or other payment from those listed below, which under any law are not subject to attachment at all or are not subject to attachment except for the purpose of payment of maintenance debt owed by the debtor to the debtor's spouse, child or parent under a judgment or other decision of a competent court or tribunal, or in respect of which there is a statutory prohibition on or restriction of their attachment:
(1)a monetary benefit or other payment paid by the National Insurance Institute;
(2)a monetary benefit or other payment paid by another State institution, as designated by the Minister of Justice with the approval of the Constitution, Law and Justice Committee of the Knesset.
(b)Where a prohibition on attachment of a benefit or other payment as referred to in subsection (a) applies for a certain period of time under any law, the provisions regarding the prohibition shall also apply to payment of the benefit or the other payment by means of an immediate charge card or a charge card as aforesaid, with the necessary modifications.
Cancellation of Restrictions§
7c.
(a)Where the debt has been repaid or the registrar for Authority matters has determined that the debtor lacks the ability to pay the debt, the registrar shall order the cancellation of a restriction imposed on the debtor under the provisions of section 7a.
(b)Without derogating from the provisions of subsection (a), the registrar for Authority matters shall order the cancellation of a restriction imposed under the provisions of section 7a if satisfied that the debtor is complying with the payments prescribed for the debtor by law.
(c)
(1)Where a restriction has been cancelled as referred to in subsection (b), the registrar for Authority matters may reimpose it, on the registrar's own initiative or at the request of the Director of the Authority, if satisfied that the debtor has ceased to comply with those payments;
(2)a restriction reimposed before the expiry of one year from the date of its cancellation shall take effect without the need to send a summons to a hearing under section 7a(d) or to send a warning under paragraph (3); notice of the renewal of the restriction shall be sent to the debtor by registered post and shall take effect at the expiry of 15 days from the date it was sent;
(3)where one year has elapsed from the date of cancellation of the restriction, a warning shall be sent to the debtor by post stating that the registrar for Authority matters has reimposed the restriction and that it will take effect at the expiry of thirty days from the date of its service, unless the debt is repaid or the registrar or the Director of the Authority is satisfied, on the basis of an application under section 5b, 5c or 7d, that the debtor lacks the ability to pay the debt or that other circumstances for the spreading or deferral of payment of the debt or for an exemption from payment of an arrears supplement exist or that there are other grounds for cancellation or amendment of the restriction, or unless another decision is given by the registrar.
(d)The registrar for Authority matters may cancel a restriction imposed under the provisions of section 7a, on the registrar's own initiative or at the request of the parties, and may make the cancellation subject to conditions to be determined, if the registrar finds that this is justified in the circumstances of the matter.
(e)Where a restriction imposed on a debtor has been cancelled under the provisions of this section, the Director of the Authority shall immediately, and no later than the expiry of 24 hours from the time of its cancellation, serve notice thereof on the relevant entities, as the case may be, and shall also send notice thereof to the debtor; the notice to the debtor shall state that if the debtor ceases to comply with payment as aforesaid, the registrar for Authority matters may reimpose the restriction without the need for a summons to a hearing or for the giving of a warning in accordance with the provisions of subsection (c).
Authority of the Registrar for Authority Matters to Spread a Debt, Defer the Date of its Payment or Exempt from Payment of an Arrears Supplement§
7d.
(a)Where an application as referred to in section 7 or 7a has been submitted to the registrar for Authority matters and the registrar's decision on the application has not yet been given, or the registrar has decided on such an application to appoint a receiver or to impose restrictions and the appointment or restrictions remain in force, or the registrar has decided to reimpose a restriction after it was cancelled in accordance with the provisions of section 7c(c), the registrar may, at the debtor's request, spread the debt, defer the date of its payment or grant an exemption from payment of an arrears supplement, in accordance with the provisions of section 5b or 5c, with the necessary modifications; where the debtor has submitted to the registrar for Authority matters such a request and the registrar has determined that the debtor lacks the ability to pay the debt, the registrar shall order the spreading of the debt, the deferral of the date of its payment or the granting of an exemption from payment of an arrears supplement, as the case may be.
(b)Where an application for the spreading of a debt, the deferral of the date of its payment or for an exemption from payment of an arrears supplement as referred to in this section has been submitted to the registrar for Authority matters, the registrar may examine the debtor's financial situation, assets, income level and sources thereof, the debtor's departures from and entries into Israel, debts and expenses, in order to determine the debtor's ability to pay the debt; for the purpose of implementing this section, the registrar shall have the powers referred to in section 6; examination of a debtor's ability shall be conducted in public or in camera, as the registrar shall direct.
Procedural Rules before the Registrar for Authority Matters§
7e.
The Minister of Justice shall prescribe the procedural rules for proceedings before the registrar for Authority matters; where Regulations have not been made under this section in respect of a particular matter, the registrar for Authority matters shall act in that matter in the manner that appears to the registrar to be the most just and beneficial.
Appeal against Decisions of the Registrar for Authority Matters§
7f.
(a)Decisions of the registrar for Authority matters are appealable to the Magistrate's Court, with the leave of the registrar or a Magistrate's Court judge; however, decisions given under section 7 with respect to the receivership of a dwelling under section 7a(c)(1) or (2) or under section 58 of the Execution Law, as applied by section 7(e), are appealable as of right.
(b)The filing of an appeal or an application for leave to appeal under this section shall not in itself stay a proceeding under this Law; however, the registrar for Authority matters or the court before which the appeal or the application for leave to appeal has been filed may order a stay of the proceeding, and the registrar or court may make the stay conditional upon the provision of security to its satisfaction.
Stay of Departure from the Country for the Prevention of Frustration of Collection§
8.
(a)Where the Director of the Authority has reasonable grounds to believe that the debtor is about to leave the country and thereby frustrate the collection of the debt or a proceeding for its collection, the Director may apply to a registrar for Authority matters and request that the registrar order a stay of the debtor's departure from the country and the deposit of the debtor's passport or travel document.
(b)The registrar for Authority matters shall not make an order as referred to in subsection (a) unless the amount of the debt is not less than the amount prescribed by the Minister of Justice, and the registrar is satisfied that the debtor's departure abroad is liable to frustrate the collection of the debt and that it is not possible to secure its collection by way of the provision of appropriate security or in any other manner.
(c)The validity of a stay of departure order under this section shall not exceed one year; however, the registrar for Authority matters may, upon the application of the Director of the Authority, extend this period for reasons that shall be recorded.
(d)Where the debtor is a corporation, a stay of departure order under this section may be requested against a director of the corporation; an application under this subsection shall be submitted to the Magistrate's Court; in this subsection, "director of a corporation" – a person serving as the general manager of the company, or its principal shareholders registered with the Registrar of Companies, and in any other corporation – its general manager, a committee member or a partner.
Confidentiality§
9.
A person to whom information has come for the purpose of implementing this Law shall not disclose its contents, except for the purpose of implementing this Law or pursuant to an order of a court.
Offences§
10.
A person who does one of the following shall be liable to one year's imprisonment;
(1)obstructed an action taken under this Law or interfered with its execution;
(2)disclosed information or used information contrary to the provisions of sections 6(c) or 9.
Limitation on Use of Power§
11.
(a)The receipt of information under section 6 from a tax authority within the meaning of the Law for the Amendment of Tax Laws (Exchange of Information between Tax Authorities), 5727-1967, shall be in accordance with Regulations that the Minister of Justice shall make with the consent of the Minister of Finance.
(b)The exercise of powers vested under this Law, insofar as they relate to a facility held by the Israel Defence Forces or another branch of the defence establishment approved by the Minister of Defence, or to information in their possession, shall be in accordance with Regulations that the Minister of Justice shall make with the consent of the Minister of Defence.
(c)The exercise of powers vested under this Law insofar as they relate to a facility held by the Israel Police or the Israel Prison Service, or to information in their possession, shall be in accordance with Regulations that the Minister of Justice shall make with the consent of the Minister of Police.
(d)Regulations under this section require the approval of the Constitution, Law and Justice Committee of the Knesset.
Collection on Behalf of a Fund, Corporation, Local Authority, Local Committee or the Public Defender§
12.
(a)Debt monies collected on behalf of a fund, corporation, local authority or local committee under the provisions of this Law shall be transferred to the fund, the corporation, the local authority or the local committee, as the case may be, after deducting the expenses for taking collection proceedings as referred to in section 4, and also after deducting an amount at a rate of 3% of the debt monies remaining after the deduction of expenses as aforesaid, for the purpose of covering the operating expenses of the Authority.
(b)Debt monies as defined in paragraph (11) of the definition of "debt", collected by the Authority under the provisions of this Law, shall be transferred to the Public Defender.
(c)Debt monies as defined in paragraph (16) of the definition of "debt", collected by the Authority under the provisions of this Law, shall be transferred to the local committee.
(d)Debt monies as defined in paragraph (16a) of the definition of "debt", collected by the Authority under the provisions of this Law, shall be transferred to the local authority.
Implementation and Regulations§
13.
(a)The Minister of Justice is responsible for the implementation of this Law and may, with the approval of the Constitution, Law and Justice Committee of the Knesset, make Regulations on any matter relating to its implementation.
(b)Without derogating from what is stated in paragraphs (13) and (14) of the definition of "debt" in section 1, the Minister of Justice may, with the consent of the Minister concerned and with the approval of the Constitution, Law and Justice Committee of the Knesset, amend by Order the Fourth Schedule and the Fifth Schedule.
Commencement§
14.
This Law shall commence 14 days from the date of its publication; however, with respect to a debt that is an administrative fine, a fine for a fixed-penalty offence, a civil fine, a monetary sanction, an undertaking, a surety, a security, a fee paid in a religious court or costs awarded by it, costs awarded by a body empowered by law to impose a fine or a monetary sanction, and also double costs as referred to in paragraphs (2), (3), (4), (5a) to (5c), 7(c) to (e), (8) except in relation to costs awarded by the court in favour of the State Treasury, and (9) of the definition of "debt" in section 1, its commencement shall be on the date that the Minister of Justice shall prescribe by Order.
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LawTax Law
חוק המרכז לגביית קנסות, אגרות והוצאות, תשנ"ה-1995
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