Income Tax Ordinance

In this Schedule —

"the Guardian" — the Custodian of enemy property appointed under Section 2 of the Trading with the Enemy Ordinance, 1939, or the Custodian of absentees' property as defined in the Absentees' Property Law, 5710-1950;

"enemy property laws" — the Trading with the Enemy Ordinance, 1939, or the Absentees' Property Law, 5710-1950, or any other law relating to trading with the enemy or with absentees, and wherever reference is made in this Schedule to money or property or income received by or in the hands of the Custodian — including money, property or income held to his order;

"property" — as defined in Section 9 of the Trading with the Enemy Ordinance, 1939, or absentee property as defined in the Absentees' Property Law, 5710-1950;

"blocked property" — money or property in the hands of the Guardian;

"blocked income" — income payable to the Guardian which would have been included in the chargeable income of a person for any tax year, but for the enemy property laws; and "income owner" — such a person.

Blocked income shall be treated as the chargeable income of the income owner, and the Guardian may be assessed in respect of that income in the same manner as the income owner would have been assessed had it been included in his chargeable income for that year.

[Blocked]

Where the Guardian has been assessed under Section 2 of this Schedule in respect of blocked income, or has received blocked income paid after deduction of tax, and it has been proved to the satisfaction of the Assessing Officer that the owner of the blocked income would have been entitled, on his claim, to relief from tax but for the enemy property laws — such entitlement shall also be granted to the Guardian, whether by way of repayment or otherwise.

[Guardian's Entitlement to Reliefs]

Where the Assessing Officer is of the opinion, based on information in his possession, that the chargeable income of a particular individual income owner ought to have included income that is not blocked income, the Assessing Officer may assess that person in respect of such non-blocked income without a notice of assessment.

[Income Owner]

Tax with which the Guardian has been assessed under Section 2 of this Schedule in respect of blocked income shall be paid by the Guardian himself or through another, out of the funds of the income owner in his hands.

25 O.G. 1930, Supp. 1 No. 923, p. 79.

26 S.H. 37, 5710, p. 86.

[Collection of Tax on Blocked Income]

168 Book of Laws 6 9th Iyar 5721 25.04.1961

Obligation of Guardian to Pay All Tax Due from Owner of Blocked Income

Out of the funds of an individual income owner in the hands of the Guardian, the Guardian shall pay — unless there is an express contrary provision in this Schedule — all tax due, upon demand of the Assessing Officer, from that individual for any assessment year or tax year, and any amount so paid shall be deemed to have been paid by that individual; in such a demand, the Assessing Officer may also include an amount in respect of which the assessment is still or may still be the subject of an objection or Appeal.

[Release of Income]

Where the Guardian has released to a person, or for his benefit, or to his legal representative, all that is in his hands to which that person would have been entitled but for the enemy property laws, then thereafter —

[Released, Liable for Pre-Release Assessment]

A Guardian who has been assessed under the provisions of this Schedule and who, before or after the assessment, paid, transferred or released the income or the property to another person, or permitted such to be done, shall — to the extent that part of the tax payable under the assessment cannot be paid by the Guardian under the provisions of this Schedule — have that part constitute a debt due to the State from the person regarded as the owner of that income under Section 7 of this Schedule, or his legal representative, if this is a case to which that Section applies, or from the person to whom the income was paid, transferred or released, and that part shall be recovered accordingly and the Guardian shall cease to be liable for the tax.

[In Due Course]

Notwithstanding the restrictions in this Ordinance on making assessments, objections and appeals, assessments may be made under Sections 2 and 4 of this Schedule at any time before the date fixed by the Minister of Finance, and an objection and appeal against such an assessment and a claim for tax relief may be submitted at any time before that date.

[Presumed Owner of Income]

For the purposes of Sections 2 to 4 of this Schedule, it shall be presumed — unless the contrary is proved — that since the third of September 1939 nothing has occurred that would have replaced an owner of blocked income or an owner of blocked property, and in any assessment under Section 2 of this Schedule the name of the income owner shall be set out.

[Accrued and Not Yet Paid]

Where income from a particular source in a particular year ought to have been paid to the Guardian but for the fact that from that source there was in that year no income available for payment, yet that income would nevertheless have been chargeable to tax but for the enemy property laws, the provisions of this Schedule shall apply as if income from that source had been available for payment in that year and had been paid to the Guardian.

The provisions of this Schedule shall apply to the assessment year beginning on the first of April 1947, and to all subsequent assessment years and tax years.

Pinchas Rosen

Minister of Justice

169 Book of Laws 6 9th Iyar 5721 25.04.1961

Comparative Table of Sections of the New Version

In old

version

In new

version

In old

version

In new

version

In old

version

In new

version

In old

version

In new

version

63(f)

63(g)

63(h)

43a(e)(f)

43a(g)

64(1)(a)(c)

63a

64(1)(b)

72(1)(4)

72(5)

72(6)

73(1) Definitions

73(1)

73(2)

73(3)

73(4)

73(5)

73(6)

73(7)(8)(9)

73(10)-

73(11)

73(12)

73(13)

74(2)(d)

74(1)

74(2)

74(a)

78(2)

78(1)

79a

79b(1)

79b(2)

79c

79d

80a

4(1)

4(2)

4(3)

4(4)

4(5)(6)

45a

54(1)(3)

54(2)

81a

81b

82a

29a

29b

29c

29d

30a

30b

30c

43(1)-(4)

43a(a)

43a(b)(c)

43a(j)

43a(h)

47(2)(3)

47(1)

48a

45b

55a

59(1)

59(2)

59(3)

59(4)(5)

60(1)

60(2)-(4)

60(5)

60(6)

60(7)

60(8)

48(1)

48(2)

48(3)

48(4)

48(4) concluding part

48(5)(6)

42(1)(2)

42(3)

42(4)

42(5)

62(1)

62(2)

62(3)

62(4)

62(5)

62(6)

62(7)

62(8)

63(a)(b)

63(c)

63(d)

147,

166-

178,

19a(2)(d)

19a(2)(e)

19a(?)

19c

52a

23(1)

23(2)(2a)

23(3)

8(b)

20(1)

20(2)(3)

20(4)

20(5)

26(5)(6)(7)

26(1)(a)-(c)

26(1) condition (b)

26(2)

26(3)

26(4)

24 concluding part, 25(2)(a)

24 opening part

25(1)(2)(b)

28a

5a(1)

5a(2)

5a(7)

5a(8)

5a(12)

5a(6)

5a(5)

5a(3)(a)

5a(3)(b)

5a(3)(c)

5a(4)

5a(11)

5a(13)(a)

5a(13)(b)(c)

5a(9)

5a(10)

5a(14)

10b

35(1)

35(1) concluding part

35(2)

35(3)

35(4)

35(6)

35(7)

35(5)

120,

5(1)

5(2)

5(3)

5(4)

5(1)(f)

concluding part (5)(6)

8(a)-(j)(l)-(p)

8b(1)

8b(2)

8b(3)

8b(4)

8b(5)

11(1)(a)-(h)

11(5)(6)(7)

11(1) condition (1)

11(4)

11(1)(i)

11(1)(i)(ii)

11(1)(i)(iii)

11(1) condition (ii)

11(1) condition (ii)

continued

11(1) condition (ii)

concluding part

11(1a)

13(1)(2)

13(3)

11(2)

11(3)

14a

14b

15a

15b

15c

15d

15f

15e

15g

16a

16d

16b

19(a)

19(b)(1)

19(b)(2)

19(b)(1)

19(b)(1)

19(c)

19a(1)(3)

19a(2)

19a(2)(a)

19a(2)(b)

19a(2)(c)

50(a)

50(b)

Comparative Table of Sections of the Old Version

In new

version

In old

version

In new

version

In old

version

In new

version

In old

version

In new

version

[Old]

42(1)(2)

42(3)

42(4)

42(5)

43a(a)

43a(b)(c)

43a(d)

43a(e)(f)

43a(g)

43a(h)

45a

45b

47(1)

47(2)(3)

48(1)

48(2)

48(3)

48(4)

48(4) concluding part

48(5)(6)

48a

52a

54(1)(3)

54(2)

55a

59(1)

59(2)

59(3)

54(b)

19a(2)(c)

19a(2)(d)

19a(2)(e)

19a(3)

19b

19c

20(1)

20(2)(3)

20(4)

20(5)

23(1)

23(2)(2a)

23(3)

24 opening part

24 concluding part

25(1)

25(2)(a)

25(2)(b)

26(1)(a)-(n)

26(1) condition (b)

26(2)

26(3)

26(4)

26(5)(6)(7)

28a

29a

29b

29c

29d

30a

30b

30c

35(1)

35(1) concluding part

35(2)

35(3)

35(4)

35(5)

35(6)

35(7)

17(9)

17(10)

50(a)

51

52

50b

54(a)

11(1)(s)

11(1)(i)(ii)

11(1)(i)(iii)

11(1)(j)

11(1)(k)

condition (i)

condition (ii)

condition (ii)

continued

condition (ii)

concluding part

11(1a)

11(2)

11(3)

11(4)

11(5)(6)(7)

13(1)(2)

13(3)

14a

14b

15a

15b

15c

15d

15e

15f

15g

16a

16b

16c

16d

19(a)

19(b)(1)

19(b)(1) opening

19(b)(1) concluding

19(b)(2)

19(c)

19a(1)

19a(2)

19a(2)(a)

19a(2)(b)

Omitted

8(a)

8(b)

8(c)

17(1)-(8)

4(1)

4(2)

4(3)

4(4)

4(5)(6)

5(1)

5(1)(f) concluding part

5(2)

5(3)

5(4)

5(5)

5(6)

5a(1)

5a(2)

5a(3)(a)

5a(3)(b)

5a(3)(c)

5a(4)

5a(5)

5a(6)

5a(7)

5a(8)

5a(9)

5a(10)

5a(11)

5a(12)

5a(13)(a)

5a(13)(b)(c)

5a(14)

8(a)-(j)(l)-(p)

8(k)

8b(1)

8b(2)

8b(3)

8b(4)

8b(5)

10b

11(1)(a)-(h)

Comparative Table of Sections of the Old Version

In new

version*

In old

version

78(1)

78(2)

79a

79b(1)

79b(2)

79c

79d

80a

81a

81b

82a

In new

version

In old

version

73(1) Definitions

73(2)

73(3)

73(4)

73(5)

73(6)

73(7)(8)(9)

73(10)

73(11)

73(12)

73(13)

74(1)

74(2)

74(2)(d)

74a

In new

version

In old

version

63(c)

63(d)

63(e)

63(f)

63(g)

63a

64(1)(a)(c)

64(1)(b)

72(1)(4)

72(5)

72(6)

73(1)

In new

version

In old

version

59(4)(5)

60(1)

60(2)-(4)

60(5)

60(6)

60(7)

60(8)

62(1)

62(2)

62(3)

62(4)

62(5)

62(6)

62(7)

62(8)

63(a)(b)