Israel Tax Authority Launches 2M NIS Compensation Pilot for Extortion Victims
The Israel Tax Authority launched a pilot program offering up to 2 million NIS in compensation for business owners suffering property damage due to extortion or police complaints.
Israel Tax Authority Launches Pilot Program to Compensate Extortion Victims Up to 2M NIS
The Israel Tax Authority has launched a new pilot program providing a significant economic safety net for business owners whose property or homes were damaged after refusing to pay protection fees or after filing a police complaint.
Implemented under government decision 4299, the initiative covers damages incurred between September 24, 2026, and November 23, 2026. Eligible applicants can receive financial compensation of up to 2 million NIS for direct damage to equipment, inventory, business premises, and even private residences.
Eligibility Criteria and Insurance Requirements
Eligibility is restricted to owners of legal businesses holding a valid business license and an active file with the Tax Authority. Applicants must prove they filed a police complaint recognized as related to extortion and show they exhausted insurance avenues.
Claimants must demonstrate that their insurance claim was rejected, or that they failed to secure malicious damage coverage despite previous insurance, while complying with all insurer security conditions and proving lawful building construction.
Application Deadlines and Critical Warnings
The application window requires swift preparation. Claims must be submitted online to the Property Tax Fund system within just seven days of the damage incident, accompanied by all relevant documents. Processing may take up to eight months.
Crucially, business owners are strictly prohibited from repairing damaged property before official approval. Independent repairs before a property tax assessor inspects the site may result in immediate claim rejection, though clearing broken glass for safety reasons is permitted.
