Churches cry foul as tax war flares up again in Israel
The heads of Christian Churches in the Holy Land have officially protested against a renewed attempt to force them to pay certain taxes in the State of Israel. The most pressing case at the moment is related to the Armenian Church, but there are many cases involving Catholic institutions.
The Patriarchs and heads of local Churches of Jerusalem have issued an official statement condemning the most recent attempt by the Municipality of Jerusalem to force Churches to pay the municipal tax known as “Arnona”. According to the statement, issued on 19 February, the actions of the Municipality are “legally dubious and morally unacceptable”.
The local government issued an order of foreclosure against the Patriarchate of the Armenian Apostolic Church, which if successful would result in the takeover of the Church’s property by the Municipality, due to alleged unpaid taxes. The Armenian Apostolic Church is one of the smallest Churches with an historical presence in the Holy Land, but the Catholic Church and the Greek Orthodox Church are also affected by this issue. The issue of whether Churches should be exempt from certain taxes, including Arnona has been debated for decades.
Relations between Christian Churches and the State in Israel are governed by an understanding known as the “status quo”, which dates back to the days of the Ottoman Empire. However, “the status quo agreement is a political statement,” said Sami el-Yousef, CEO of the Latin Patriarchate of Jerusalem, during a conversation with a delegation from Aid to the Church in Need (ACN) International. “When you look at the actual law, there is nothing that says that our institutions are exempt. If we go to court we will likely lose, so this issue requires a political solution. But all the Churches will go bankrupt if we have to pay according to the law.”
“Churches are being pushed in terms of paying taxes. Talks between the Vatican and the State of Israel began in 1994, and should have been agreed by 1996, but they are still negotiating,” Sami el-Yousef explained.
In the specific case regarding the Armenian Patriarchate, however, the Churches argue that the municipality has not respected due process. “Particularly alarming is the municipality’s attempt to enforce a debt determination without judicial scrutiny, and in defiance of the governmental committee established to negotiate such matters in good faith. This reckless move jeopardizes the Orthodox Armenian Patriarchate and sets a perilous precedent that could imperil Christian institutions throughout the Holy Land,” reads the joint statement by the Patriarchs and heads of local Churches of Jerusalem.
In a separate statement, the Armenian Patriarchate complains that the amount claimed by the municipality’s collection officer refers to alleged debts dating to 1994 but disregards the statute of limitations and includes properties that are actually leased to the Municipality itself, which owes millions of shekels in overdue rent, and accuses the collections officer of acting “as the plaintiff, the judge, and the executor, all in one, serving the interests of his employer – the Municipality”.
George Akroush, director of the Latin Patriarchate’s development office in Jerusalem, told ACN that “we have big organisations that have churches, conference halls, formation centres and maybe a small guest house and a tiny souvenir shop. And what they say is that since there is a guest house or a souvenir shop it has to pay tax, but they include the whole area.”
In their negotiations, the Churches have stressed the invaluable social role they play, arguing that if they are forced to close it will place an enormous burden on the state itself, George Akroush said. “There are not enough schools, elderly homes, centers for people with disabilities, orphanages, cultural centres, hospitals or other social services to serve the population, and the Churches, which have been here for centuries before the State of Israel was established, cover these areas, and therefore they should be exempt. If Israel imposes these taxes, several services will be stopped, because it will be impossible for the Church to afford the operations. We already operate at a deficit, and need international support, so this would cease several vital services provided to the poorest of the poor, and they will be the ones who suffer.”
In Jerusalem, there are four cases involving Catholic institutions, with more in other parts of Israel. “They have frozen the bank accounts of Latin Patriarchate’s schools in Haifa. Nobody stands up for us, so we had to negotiate. We managed to reduce the amount from two million shekels [over €500,000] to 500,000 NIS (€134,000), signing an agreement that does not commit us to paying taxes, but talks about municipal contributions. What will happen next year? We no longer have the protection we used to think we had,” said Sami el-Yousef to ACN.
“This is a clear attempt by the Municipality to undermine the Armenian Patriarchate through singling it out with economic pressure, with the aim of diminishing its presence in the Holy Land. Any court judgement regarding the alleged Arnona debt would set a dangerous precedent, extending its applicability to other Christian communities. This would have a profoundly negative impact on the overall Christian presence in the Holy Land,” the Armenian Patriarchate’s statement says.
In their own statement on 19 February, the Patriarchs and Heads of Churches call for a political solution. “The targeting of one Church is an assault on all, and we cannot remain silent while the foundations of our Christian witness in the land of Christ’s ministry are shaken. We call upon Prime Minister Benjamin Netanyahu, Interior Minister Moshe Arbel, and Minister Tzachi Hanegbi to immediately intervene, freeze all foreclosure proceedings, and ensure that negotiations resume within the above-mentioned governmental committee in order to reach to an amicable solution regarding this issue in the spirit of justice.”
