Bo 5786 – The Torah’s Tax Year

When does the Tax year begin and end?

For Americans and Israelis, this is a strange question because the tax year is simply the calendar year. They report their taxes from January 1st through December 31st. However, in many countries, it’s not so straightforward—each has its own reasons.

The UK runs from April 6th to April 5th. This dates back to when New Year’s Day was celebrated on March 25th, known as “Lady Day” for Christian reasons beyond the scope of a Torah and Taxes blog. In 1752, when the UK switched from the Julian to the Gregorian calendar, the date moved 11 days forward to April 6th to correct the calculation error caused by the imperfect Julian system. Anyone born between September 2nd and 14th missed their birthday that year. Ever since, the British have been too stuck in their ways to change it.

India, even while part of the British Empire, managed to shift the start of the year to April 1st to align with the agricultural season. Australians, in a more rebellious move, ditched the British system entirely in the early 1900s and replaced it with July 1st.

The first Mitzvah the Jewish people were commanded was given even before they left Egypt: setting the Jewish calendar, beginning with the month of Nissan. Why does Nissan have to be the first month?

The Ramban explains that time is always relative to what is important. There must be a reference point to look forward to or back at. The days of the week are numbered building up to Shabbos. The months of the year are counted from the Exodus from Egypt. This structures the calendar around focal points that influence our mindset and values.

The Sforno adds another dimension. The most valuable asset a free person has—which a slave does not—is time. A slave is not the master of his own time; the master decides what is to be done and when. A free person, however, can choose their tasks and how they wish to devote their time. The Exodus marked the beginning of the Jewish people’s journey into living life by their own decisions, masters of their own time. How they spent it was entirely up to them—for good or for bad.

For any yearly related filings or other financial issues you require assistance with please reach out at [email protected].

Good Shabbos.