Despite my sincere desire to continue writing about how to develop the business, certainly after a week of absence (for personal reasons), I chose to post in this column a summary of the issues relating to business owners who were affected, in two ways: direct harm - direct damage to the business due to falling missiles or shrapnel, and indirect harm - due to a decrease in profits due to a decrease in customer traffic and the like.
The government has signed regulations that allow for the payment of compensation for indirect damages to business owners in the south of the country, between 0-40 km from the Gaza Strip border, following Operation Protective Edge.
The regulations refer to the period from 8.7.14 to 31.8.14, or until the end of Operation Protective Edge, whichever comes first.
As of today, any injured party within a radius of up to 40 km from the Gaza Strip may file a claim for indirect damage to the Tax Authority's compensation fund in one of the following ways: Three routes (green): A payroll track, a turnover track, and a current expenses track. The green tracks are designed to provide a quick, simple, and practical response to affected businesses.
A condition for filing a claim in each of the tracks is the payment of salary to employees who were absent due to the security situation, under conditions to be determined in regulations and subject to the Home Front Command's directives regarding the closure of educational institutions. Business owners in the area of school settlements and/or business owners within 0-7 km of the Gaza Strip border will be able to choose between the aforementioned tracks and The red route, within the framework of which they will be entitled to claim compensation for the indirect damages that they prove regarding the loss of profit and according to the nature of the business.
below The green routes:
· Salary track - An employer will be able to file a claim for reimbursement of wages paid to employees for days of absence resulting from the security situation in accordance with the Home Front Command's guidelines. Compensation will also be provided for employees who were absent from their workplace to care for their young children under the age of 14 and, for the first time, also for a person with a disability who is prevented from arriving at and staying at the workplace because he cannot comply with the Home Front Command's guidelines.
· Turnover track - The business owner will be able to file a claim for compensation for a decrease in business turnover due to the security situation, according to the business's ongoing VAT reporting (monthly or bi-monthly). The formula will include comparing the business turnover according to the aforementioned reporting method, compared to the corresponding period last year. The total compensation in this track will not exceed NIS 3 million.
· Expenses Track - The business owner will be able to file a claim for compensation for the operational damage caused to the business during the relevant period. This track was established with the aim of compensating for excess expenses incurred by the business to maintain its normal turnover during the operation. The total compensation in this track will not exceed 3 million NIS.
Pathways to unique industries:
For unique industries such as event hall operators, hotels, and farmers, special tracks will be activated to address the nature of the industry (cancellation of reservations at hotels and event halls), and to address the various branches of agriculture. Compensation in the tracks for the unique industries will also not exceed 3 million NIS.
New business owners who began their operations by June 1, 2014 will be able to choose when filing a claim between a salary track and a turnover track that is tailored to them.
For your convenience, a direct link is attached to download a claim form for damages for direct injury.
http://taxes.gov.il/TaxesFormsList/misui2881new.pdf
Damage to the business
Business Equipment and Inventory: Coverage for damages to damaged business equipment is, by law, based on the market value of the equipment (value from a voluntary seller to a voluntary buyer in the open market - in its condition prior to the damage). You must prove your ownership of the damaged contents.
Regarding inventory, you are entitled to compensation according to the cost value of the damaged inventory (excluding VAT), after you have provided evidence that the inventory was your property.
To prove the damage, you must provide a list of the damaged equipment/inventory, financial statements or documents indicating that the equipment/inventory is your property (purchase invoices, inventory reports certified by a CPA, etc.). All material must be forwarded to the appraisers employed by us in accordance with their requirements.
The claim forms must be accompanied by income tax certificates for withholding tax and a photocopy of the check to verify the bank details, in addition to all the documents that will be required of you by the appraisers.
Important to know
Do not remove equipment, inventory, waste, or any other object found in a business/residential home without prior coordination with the compensation fund assessor at the Tax Authority.
In any case, there is no entitlement to compensation for the loss (or theft) of cash and checks damaged in the incident.
For further inquiries and details, please contact the real estate tax offices or property tax centers near your place of residence:
• Tax Assessor Ashkelon / Sderot, 1 Ooz St., Phone: 08-6623300
• Haifa Real Estate Taxation: 15 Pal-Yam St., Phone: 04-8630402
• Tiberias Real Estate Taxation: 23 Al-Hadif St., Phone: 04-6714005/6
• Real Estate Taxation Jerusalem: 66 Kanfei Nesharim St., Phone: 02-654231/4
• Real Estate Taxation Tel Aviv: 125 Menachem Begin Road, Phone: 03-7633224
It should be emphasized that the matters presented in this article do not replace the provisions of the law or established procedural provisions. In any case of contradiction or inconsistency between the provisions of this article and the provisions of the law, the provisions of the law shall prevail.
• The writer is the CEO of the consulting firm M&S, which specializes in business consulting, raising business credit, building and improving sales departments, valuations, and recovery plans. He is also the founder of the 'School of Business Management - Startup'.
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