Haifa, company battle over NIS 20m. payment

January 18, 2009 14:33
1 minute read.


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


The city of Haifa and the municipal Economic Company (Hevra Kalkalit) are currently fighting a tug of war over NIS 20 million that the company is refusing to pay the city, reports www.mynet.co.il. The company says that if it transfers the money to the city, it will have to pay a dividend tax of 25 percent, or NIS 5 million, to the government, and it should keep the cash, but the city says the company is trying to make "easy money." According to the report, the company has a budget of hundreds of millions of shekels and is responsible for some of the biggest projects in Haifa, including the life sciences park currently being built in the city and the international stadium being planned for the south of the city. It is also jointly responsible, together with the Gav Yam company, for the existing Matam high-tech industrial park, and it is this venture that is at the heart of the current dispute. The report said that Matam had made hundreds of millions of shekels over the years, and that as a result both the Economic Development Company and the Gav Yam company each received NIS 20 million in dividends recently. The report said the company wants to leave the money in its own coffers and invest in other projects, but the city is demanding the money as its rightful due. "The Economic Company is looking for easy money," a city treasury official said. "The Matam company and the Economic Company have accumulated hundreds of millions of shekels and I suggest that they use these moneys. If paying taxes to the state and transferring moneys to the city are a waste of money in their eyes, then there is a problem."

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

JERUSALEM: RESETTLED upon its desolation
December 19, 2010
Vying for control of the Temple Mount – on Foursquare