National and local authorities around the world have for the past several years been trying to define the tax obligations of the various new forms of business in the Internet era.
Online entrepreneurs and traders have been trying their best to slip under the tax radar. I would appear that Palestinian terrorists had the same idea.
For the better part of a decade, the Palestinian Authority has brazenly used large portions of the foreign financial aid it receives (and relies upon to survive) to effectively make terrorist violence one of the more lucrative job opportunities in the territories under its control. Those who carried out attacks and were jailed by Israel as a result receive what amounts to a monthly salary, with those who killed more Jews getting more money. Those who died while attacking Israelis can rest assured that their families are being well cared for with monthly stipends.
Everything else aside, Israel, which collects taxes on behalf of the Palestinian Authority, says this industry of blood, like all others, carries a tax liability for those with Israeli citizenship.
The issue came to a head in November, when a Palestinian Arab family living in east Jerusalem requested state economic support. As it turned out, the family was already receiving what are called by Israelis “pay-for-slay” payments from the Palestinian Authority, meaning that the family’s breadwinner is currently jailed for murdering Jews.
The request was denied, and Attorney-General Avichai Mandelblit determined that under Israel’s Income Tax Law, payments made by the Palestinian Authority to Arab citizens or residents of Israel are taxable as income.
Palestinian Media Watch subsequently issued a report revealing that these salaried terrorists owe millions of dollars in back taxes to the State of Israel.