The Real Estate Taxation Appeal Committee has ruled that developers who won Mehir LaMishtaken tenders are not liable for purchase tax on the land component. The Committee accepted the position of Ashdar Building Company, represented by Adv. Leor Nouman and Adv. Guy Wertheim of S. Horowitz, holding that the rights granted to developers were so restricted that they do not constitute “real estate rights” under the Real Estate Taxation Law. In practice, the contractors acted as the long arm of the state, providing construction services only. A procedural arrangement applies this ruling to over 150 additional appeals nationwide – with a refund potential of hundreds of millions of shekels.
