State Comptroller Matanyahu Englman has asked for an investigation into the 25% tax deduction on compensation for reservists’ spouses, citing concerns about its impact and lack of coordination with the Tax Authority.
State Comptroller Requests Investigation into 25% Tax Deduction on Reservists’ Spouses’ Compensation
According to the report of The Jerusalem Post, State Comptroller Matanyahu Englman has asked Finance Minister Bezalel Smotrich and Defense Minister Yoav Gallant to look into why the Reserve Servicemen’s Assistance Fund deducted 25% from the compensation given to spouses of reservists. This request was made as part of an audit into the rights of reservists and their families, following complaints from the Reservists’ Wives Forum. The audit team is trying to figure out why there was no coordination with the Tax Authority about this tax deduction.
Englman’s letter pointed out two main problems: the high 25% tax on the payments and the difficulty for spouses to get a tax refund because taxes are calculated separately for each spouse. He has suggested that the Tax Authority should give clear instructions to the Aid Fund on how to handle these tax issues, including how to calculate and withhold the right amount of tax.
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25% Tax Deduction on Reservists’ Compensation: State Comptroller Requests Investigation (PHOTO: The Times of Israel)
Reservists’ Wives Forum Leader Slams Tax on Military Families – Calls for Increased Support
Shagit Beckner, a leader of the Reservists’ Wives Forum, criticized the tax on these families, who already face financial challenges because their loved ones are away serving in the reserves. She thanked the State Comptroller for addressing the issue and urged for better support for these families, who make significant sacrifices for national defense.
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