Subscribe to Print Edition | Tue., April 08, 2008 Nisan 3, 5768 | | Israel Time: 21:53 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Advertising Books Arts & Leisure Business Real Estate Easy Start Travel Week's End Anglo File

Court: Child-care expenses are tax deductible By Ido Baum Tags: taxes, Children Judge Magen Altuvia of the Tel Aviv District Court revolutionized Israeli tax law, and gave working mothers a huge break, when he accepted the appeal of attorney Vered Pery and allowed her to deduct her child-care expenses from her income taxes. The ruling declared Pery's expenses for taking care of her children while she was at work to be business-related expenses - and therefore tax deductible. Pery, a mother of two, claimed her child-care costs were not private expenses, as the Income Tax authority had ruled but were necessary expenses so she could work. Altuvia accepted Pery's reasoning, explaining if it was not for the need to work long hours outside of the home, Pery, a self-employed lawyer, would have chosen to spend as much time as possible with her children instead. The judge also wrote that if the children were not placed in a structured, supervised framework during the parents' work hours, then parents would be unable to go to work and make a living. Advertisement The case related to Pery's payments to day-care centers from 1999-2001, where she sent her children until they were old enough for school. She also explained that she was ineligible to use subsidized day-care facilities as her income was too high. She also explained that if she stayed out of the workforce for too long in order to raise her children, then she would have lost her professional skills and ruined her professional career. Therefore, she was forced to find and pay for day care. The tax authorities position was that child-care expenses are not deductible, and over the years the Knesset has chosen to provide working mothers with other tax breaks instead. For example, mothers receive child allowances and tax credits. In addition, the state claimed there was need for legislation to allow such deductions for child care. In response, the judge said: "There is nothing in any of these [tax breaks] to show that without legislative intervention, there is no reason to recognize child-care expenses." As to the the technical side, the ruling allows the deduction of two-thirds of the costs when the day-care centers do not provide meals, or when the meals were paid for separately; or half of the expenses when meals were included. Judge Altuvia's decision said that Pery, like other workers, could not be free to practice her profession and earn a living without finding a way to take care of her children, which is part of parenthood. The tax authority responded to the ruling saying: "The decision of Judge Altuvia does not meet the standard of offsetting expenses against income. In his ruling, the judge allows the deduction of child-care expenses that are personal in nature against business expenses - something which violates the rules set by the legislature as to expenses that are entirely used to generate income." The Israel Tax Authority (ITA) said it would appeal the ruling to the Supreme Court. As of now, because an appeal is expected, the ITA will not implement the ruling yet. In coming days tax assessors will receive instructions as to how to relate to income tax returns and requests to amend past returns concerning child-care expenses, said the ITA. Attorney Moshe Shekel, Pery's lawyer, was very happy yesterday. "This is a precedent-setting ruling," said Shekel, "which presents a proper economic approach, modern, egalitarian, which represents a true contribution to collecting proper taxes. The court has made a decisive contribution to equal opportunity for the Israeli economy, and brought us closer to the enlightened nations of the world." Shekel said he was proud to be a part of the historic ruling. Bookmark to del.icio.us   In his father's memory Gilad Sharon's son plans to write his father's memoirs as he lies in a coma. Jammed FM Police close an English radio station which encourages Israeli-Palestinian dialogue.   1.   Is there such a thing for Aged-care as well? 15:44  |  lily 07/04/08   2.   Time for a Chok Okef BaGatz? 15:46  |  Binyamin Dissen 07/04/08   3.   Jeepers creepers, just now? Wow. 15:53  |  unbelievable! 07/04/08   4.   Is this only for Moms? Working men can apply? 20:00  |  Haim 07/04/08   5.   Sex Discrimination Ilegal In Israel 20:45  |  Da 07/04/08   6.   go read Elinor Burkett and IRS ruling 07:57  |  Rob of Melbourne 08/04/08   7.   what ever next ? 14:03  |  SJ 08/04/08   8.   tax deductible child care 17:50  |  elliot 08/04/08   9.   if you`re against this, then YOU stay home 21:10  |  rpc 08/04/08

Today Online Bradley Burston: I want the Palestinians to win Responses: 156 Rosner: Evangelist to Yoffie: 'I'm not trying to undermine peace' Responses: 95 Moshe Arens: Making Palestine Judenrein Responses: 73 Vice PM: Ofra settlement homes built on private Palestinian land Responses: 91 Barghouti peace overture to be read at Peace Now rally Responses: 87 More Headlines 19:39 AG hints new Katsav indictment will be harsher than first 19:01 Katsav accuser: Decision to drop plea deal stems from denial 20:56 Anaylsis: All outcomes possible in Katsav sex crimes case 20:49 Tunnel meant for terrorist infiltration found in N. Gaza 20:16 Israel to bar UN official for comparing Israelis to Nazis 21:14 Peace Now: Our views are now mainstream but peace still elusive 19:38 Police release 7 peace radio staffers after night in detention 20:40 Strikes cost Israeli economy over 2.5 million workdays in 2007 14:35 Ahmadinejad: We've added 6,000 centrifuges to nuke program 19:31 Galilee Arabs paint mosque blue and white for Israel's 60th Previous Editions Select Day 07 apr 06 apr 04 apr 03 apr 02 apr 01 apr 31 mar 30 mar 28 mar 27 mar 26 mar 25 mar

Special Offers Advertisement Learn Hebrew online with Israel's best teachers Sign up for a trial lesson today Behind the Z Word Scholarly essays, commentary, podcasts, blogs and much more. NEW! Dan Boutique Jerusalem Hotel Hip Dan Hotel in Jerusalem. Attractive Introductory Rates Pardes Institute Summer Sessions Study Jewish texts and issues in Jerusalem, Co-ed, All Levels FAREWELL ISRAEL New Film The Coming War for Islamic Revival - View Movie Trailer Free the Palestinians from: Corrupt Kleptocracy, Tyrannical Theocracy, Abysmal Anarchy Fattal Hotel Chain Perfectly located hotels on best resorts of Israel. ISRAEL BONDS Build Israel Israel bonds - a multi-purpose way to celebrate Israel's 60th Eldan Rent a Car Israel's leading car rental company offers you a 20% discount on all online reservations Junkyard Junk a car - get free towing nationwide and a tax-deductible receipt

Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |

Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.

© Copyright  Haaretz. All rights reserved