Lawyer claimed disability residency status to save NIS 450,000 on property taxes

A lawyer from Ramat Hasharon, suspected of property tax fraud totaling NIS 450,000, has been released under restrictive conditions.

Rafael Yitzhak is accused of falsely claiming disability residency status to significantly reduce his purchase tax liability. After buying a property in Ramat Hasharon in 2024, he was liable for approximately NIS 480,000 in purchase tax, as it was an additional home. Yitzhak invoked a regulation that grants disabled persons a reduced purchase tax rate of 0.5% for their own residential use.

The Netanya Real Estate Taxation Office approved his application, lowering his tax bill to NIS 30,000. However, a routine audit revealed the property was being rented to another family. Investigators found that Yitzhak only changed his address after the tax office inquired, while his family continued to reside at his original home.

Authorities detained Yitzhak on June 15 for suspected offenses under Israel's Real Estate Taxation Law. He was subsequently released under stipulations including a NIS 250,000 personal bail bond, a property lien, and a disposal prohibition order. The Central Investigation Assessor Unit is handling the ongoing investigation.