Religious Zionism MK Simcha Rothman vowed on Tuesday to block a bill that would enable Israel’s Tax Authority to access citizens’ bank accounts.
Rothman, head of the Knesset Constitution Committee, said in a post on Telegram that he is working to delay the advance of the bill, which would require banks, insurance companies and clearinghouses to report to the Tax Authority on all of their clients’ business accounts.
According to Rothman, the bill also would authorize the Tax Authority Director Eran Yaacov to require any financial entity to transfer fiscal information to the Tax Authority about any selected group of customers with common economic characteristics, as defined by the Tax Authority director.
“This is a bill that severely infringes on the constitutional right to privacy stipulated in the Basic Law on Human Dignity and Freedom,” Rothman said in his statement.
“Already in the initial discussion, everyone in the room understood this and it was agreed that without substantial changes it would not be possible to move forward.
“That’s why I asked the representatives of the Ministry of Justice in the debate today why they, who claim to be “gatekeepers,” did not even ask one of the basic questions that came up in the debate on the law in the Constitution Committee.
“The Constitution Committee under my chairmanship will continue to stand guard and prevent as much as possible unnecessary damage to the privacy of Israeli citizens,” Rothman promised.
The Tax Authority director had already warned last December that his office would demand Israeli banks forward information about their customers’ accounts to his office.
Speaking at the annual conference of The Chamber of Insurance Agents in Eilat, Yaacov said the Tax Authority “must ask for customer accounts from entities like banks, financial institutions, insurance companies and provident funds,” and said he would propose the reforms as part of the new Arrangements Law currently being debated by Israeli lawmakers.
The Arrangements Law (also called the “Economic Policy Law”) is a government-sponsored bill presented to the Knesset each year alongside the State Budget Law that incorporates government bills and legislative amendments needed for the government to fulfill its economic policies. Some lawmakers contend, however, that the law contains legislation that is not essential for passing the state budget.
