Blog

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 aharon@goldwaterfs.co.il.Good Shabbos.

Bo 5786 – The Torah’s Tax Year

Border disputes are nothing new and are critical in determining jurisdictions for taxation. In 2022, the deal to resolve the maritime border between Israel and Lebanon opened up natural gas reserves for both countries, leading to billions of shekels in tax revenue for Israel.Many years ago, Egypt and Ethiopia were involved in a border dispute of their own, each claiming land and natural resources that could be taxed for the good of the country.Then came the frogs. As the Passuk (27:7) says, the frogs only went within the land of Egypt. The Midrash (Shemos Rabbah 10:2) comments that this fact proved useful in determining the exact land border between Egypt and Ethiopia, ending a long-standing dispute.However, the Midrash (Shemos Rabbah 13:5) makes the exact same comment in next week’s Parsha regarding the locusts. The locusts also stayed strictly within Egyptian territory, enabling the determination of Egypt’s borders.The question is obvious: surely this issue had already been resolved by the frogs?The Chebina Rov said that all the border posts were knocked down by the hail, so they were back to square one.This question was posed to Rav Chaim Kanievski, who gave his typical insightful and concise reply: “There’s no stopping Ba’alei Machlokes.” The Egyptians and their neighbours weren’t interested in resolving their issues and moving on toward a peaceful relationship for the good of everybody. No amount of miracles was going to help.For any frog related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Vaeira 5786 – Frogs were Taxing everywhere

It all started with taxes. The first move which Pharaoh made in order to enslave the Jewish people was to tax them.“Let’s come and be clever about this, maybe they’ll multiply, and when there’s a war, they’ll join our enemies, fight against us, and leave the land. So, he appointed over them tax officers in order to oppress them with suffering.” (1:10–11)The commentators ask what the connection is between the problem and the solution in the eyes of Pharaoh. The Jews were multiplying and rapidly expanding their demographic within Egypt, so why was taxing them a solution?Chizkuni says that the form of tax was through labour services. Therefore, the Jews would be so tired from working that they would come home at the end of the day and collapse, not having any time or energy for their wives. Ibn Ezra suggests that the back-breaking labour would cause the men to become medically infertile.This, Pharaoh thought, would stop the Jewish people in their tracks. However, Chazal tell us the story of the efforts the righteous women of that generation put in to ensure that they would carry on bearing children even under the most depressing of circumstances.Taxes and financial incentives have been used across the world to influence fertility rates. Famously, China’s one-child rule, which existed between 1980–2016, gave crippling fines to families that exceeded the one-child limit. The cultural preference for having boys means there is now a major shidduch crisis in China as the country lacks 30 million women. Since 2016 the Chinese Communist Party has performed a radical about-turn, now implementing policies to encourage childbirth.In Israel, there are Nekudot Zikui, tax credit points, for every child under 18. This means the tax system does encourage families to expand through income tax breaks.For any Child related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.

Shemos 5786 – Tax the Jews, Stop the Babies

Where is the first time in the Torah the word Mas (tax) appears? The answer is in this week’s Parsha, Vayechi, in Yaakov’s blessing to Yissachar (49:15).Yaakov took care to bless each of his sons according to their unique traits and the destiny of their tribes. Yissachar is described as a “strong-boned donkey,” capable of carrying the heavy yoke of Torah. Yet his blessing concludes with a surprising statement:“And you shall be a tax-servant.”What is Yaakov conveying here?Rashi suggests that as Torah scholars, Yissachar’s descendants will merit the blessing of being able to pay taxes through communal service, answering questions, and leading the Sanhedrin. Onkelos interprets the verse as referring to border skirmishes: Yissachar’s descendants would confront enemies, ultimately causing those adversaries to become tax-servants. Rashbam takes the plain meaning: Yissachar would prosper and be a responsible contributor, always fulfilling his societal obligations.In modern Israel, over half the population does not pay income tax, while the top 20% contribute roughly 80% of taxes. With the start of 2026, Mas Yesef, the tax aimed at higher earners, has increased — echoing Yaakov’s blessing that some will need to stay informed and conscientious about such obligations.With the start of 2026, Mas Yesef—the tax specifically aimed at higher earners—has increased. Yaakov’s blessing can be seen as wishing that his descendants would always be prosperous enough to need to stay informed and attentive to such changes in the tax code.For any Mas Yesef related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Vayechi 5786 – Blessed with Taxes

Yosef Hatzaddik takes on one of the most ambitious projects in human history.The Eqyptians had all been forced to sell their land to Pharoah due to the famine and were now merely staying there as farmhands. The Torah then tells us how Yosef relocated the entire population of&nbsp; Egypt and required millions of people to move house (47:21).Rashi explains that the purpose of this move was to drill into the Egyptians that they were no longer the owners of their own land.&nbsp;Why does the Torah have to tell us about this seemingly purely economic move by Yosef? Rashi goes further and tells us that there was an underlying intention behind Yosef’s actions. He knew that his brothers were ultimately making their way down to Egypt and he didn’t want anyone to insult them by calling them foreigners. Through this mass displacement venture he made everyone a foreigner in their own land so that the potential insult would completely lose its punch.The Kli Yakar is troubled by the fact that this is somewhat extreme. To cause so much suffering and balagan just to avoid an insult? He explains that it wasn’t simply about preventing awkward conversations, it was about changing the Egyptian mindset in order to soften the blow of his brothers coming down to Egypt. They would be greeted by a population who felt their pain and had personally experienced starting up a new life in a new home. This was vital for stabilizing his brothers as a community in Egypt before the persecutions began.Through Yosef’s policies, Pharaoh came to own all the land of Egypt, effectively consolidating the entire land registry under a single name. In Israel, the Tax Authorities are not so lucky. Currently, the rule is that if you have income from a rental property which makes less than 5,654NIS a month, you don’t have to report the income or pay tax on it. Consequently, the Authorities don’t have info on many rental transactions. They don't know who owns or lives where. There is a proposal to change this, requiring reporting even on rental transactions which fall below the threshold. In the meantime, they just have to wait until a missile hits. The head of Reshut Hamissim recently boasted about the amount of tax evasion they exposed during the Iran 12 Day War. When a missile struck a home, the tenants applied for compensation and were required to prove that they lived at the address. To do so, they submitted their rental contract. Upon reviewing the contract, the Authorities were able to identify the landlord and then pursue them for unreported rental income.We don’t know what tactics Pharoah used in making sure there was no unreported private use of his land.For any missile related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Vayigash 5786 – Landlord or Lord of the Land

Oil being poured from a large bottle onto a spoon

Crude oil is sometimes referred to as black gold, given its connection to general economic development and growth. Olive oil can also be a great industry for a country. Spain recently legislated an arms embargo against Israel, but they are still perfectly happy to sell us Olive Oil for our Menorahs. Clearly their understanding of Chanukah and the true power behind the Jewish war machine is somewhat lacking.One man’s gold is another man’s rubbish (or trash for my readers across the pond). Accounting is all about putting a number and fixed value to assets and liabilities, even when it’s tricky to do so. How do the Tax Authorities deal with these situations? Sometimes an object’s main value is due to it’s sentimental or religious value. Does that count as a valuation?For example, a family decides to write a Sefer Torah in memory of a recently passed relative and donate it to their local Shul. They then seek to get tax deductions based on the donation. In Israel it’s a 35% credit. Is there any monetary amount that can quantify the emotions and feelings tied into the Sefer Torah? For the family, and maybe even the community, it is priceless. But how do you tell that to Mas Hachnassa?Tax Authorities generally go with the market value. What could this item be sold to a third party for? In this case, say the Sefer Torah could be sold for 50,000NIS, then that would be the price. Even though the family would never dream of selling it.We find a fascinating theme throughout the Chanukah story. The Greeks seemingly stopped short in their goal of destroying the Jewish people. They clearly had control of the Beis Hamikdash, so why didn’t they destroy it? They defiled all the oils, why not spill them out? They took off the doors of houses, why not destroy them? They abused brides, but stopped short of forbidding marriage?The answer clear. It all has to do with value. What is something worth to you? The Bach explains that the suffering from the Greek empire came upon the Jews as they did not value the service of the Beis Hamikdash enough. They were lax and lazy in its performance. Only when they showed that they were willing to fight and die for what they believed in were they redeemed.The Greeks had no problem with cultural Judaism. You can have your homes, families, Temple and even your Menorah. But the Greeks tried to convince us of one thing. You’re not special. Nothing you do is meaningful or valuable. It’s nice and cute and culturally acceptable but doesn’t really matter.Chanukah is when we celebrate the spark in our lives that makes them special. We rededicate ourselves to living lives of values and achievements that matter.For any oil related or other financial issues, please reach out at aharon@goldwaterfs.co.il.Good Shabbos, Good Chodesh and Happy Chanukah!

Torah & Taxes Blog

Bo 5786 – The Torah’s Tax Year

Vaeira 5786 – Frogs were Taxing everywhere

Shemos 5786 – Tax the Jews, Stop the Babies

Vayechi 5786 – Blessed with Taxes

Vayigash 5786 – Landlord or Lord of the Land

Chanukah 5786 – Black Gold