The State Comptroller’s report has devoted an intensive chapter to “holes within the information” in the true property sector, together with an infinite quantity of lacking and incorrect data within the Israel Tax Authority’s databases.
The State Comptroller discovered that over 900,000 flats – about half of the properties listed within the Land Registry – don’t seem within the Tax Authority’s actual property database. Lots of of 1000’s of items of knowledge entered into the Tax Authority’s database, such because the yr the property was constructed, the variety of flooring within the constructing and the world of the condominium are incorrect, and there are important gaps and contradictory data between the Tax Authority’s actual property database and the “authorities actual property web site.”
The consequence, in accordance with State Comptroller Matanyahu Englman, impacts the reliability, high quality and usefulness of the knowledge that reaches the general public, and its capability to match housing costs as a foundation for making a choice relating to a brand new buy, impedes the power to gather right taxes, and typically even violates the rights of residents to train their rights vis-à-vis the state.
“Incorrect tax calculation”
Till not too long ago, the Israel Tax Authority couldn’t acquire, amongst different issues, details about Israelis who inherited properties or constructed homes on land they owned, since this was not a tax occasion that required reporting. As “Globes” first revealed, solely throughout 2024 did the Tax Authority begin demanding and receiving lists from the Land Registry on tens of 1000’s of property house owners in Israel, with the intention of cross-referencing the knowledge it has with these lists.
The Tax Authority’s intention was to establish Israelis who hire out properties and conceal their earnings. In apply, in accordance with the State Comptroller, “The incompleteness of the Tax Authority’s actual property database creates problem in counting on it as an actual property database. As well as, an absence of full data might result in incorrect tax calculations, errors within the standing of residents’ property, and problem in finding property and property house owners.”
The State Comptroller additionally discovered that tons of of 1000’s of items of knowledge entered into the Tax Authority’s database – such because the yr the property was constructed, the variety of flooring within the constructing, and the dimensions of the condominium – are incorrect. As well as, because of the dependence of the housing worth index printed by the Central Bureau of Statistics on information reported to the Tax Authority, the supply of assorted advantages from contractors, and specifically financing offers haven’t been taken under consideration in actual time.
The State Comptroller notes within the report that the truth that incorrect information could be entered into the database “harms the standard, reliability and integrity of the database and the indices printed by the Central Bureau of Statistics. This leads, amongst different issues, to hurt to taxpayers by the varied methods within the Tax Authority, and the power of residents and numerous authorities our bodies to make use of the knowledge.”
Amongst different issues, the State Comptroller discovered that in no less than 53,963 transactions for flats, the yr of building recorded was incorrect or unknown. That is roughly 4.2% of the offers reported in this sort of housing. It was additionally discovered that there are 452,678 transactions for flats by which the variety of flooring within the constructing reported for actual property tax is zero and is in reality incorrect.
In 80,556 transactions, when the identical property was offered no less than as soon as extra, a distinction of no less than 20 sq. meters was discovered within the dimension of the condominium reported. Deficiencies have been additionally discovered relating to the registration of the variety of flats within the constructing – there are 578,561 transactions for properties by which the variety of flats within the constructing reported for actual property taxation is zero. Further incorrect information was additionally discovered within the entry of the values “condominium handle” and “variety of rooms”.
“Proper hand doesn’t know what the left hand is doing”
The State Comptroller additionally discovered gaps within the data contained in two authorities databases on actual property: the “Actual Property Database”, managed by the Tax Authority, and the “Authorities Actual Property Web site”, managed by the Israel Mapping Heart (MAPI), which is subordinate to the Ministry of Housing.
The State Comptroller discovered that the 2 authorities web sites produce considerably completely different outcomes, together with a distinct variety of transactions, completely different transactions, and an inconsistent presentation, in a manner that would mislead the general public. In the case of making choices primarily based on the official data, the comptroller says, “The proper hand doesn’t know what the left hand is doing.”
Tax Authority Response</b. The Tax Authority stated, “The Authority’s information relies on the taxpayer’s declaration and it’s not potential to forestall them from reporting as they want primarily based on the info of their possession, however solely to warn of a case by which the report seems uncommon. There was already an alert for an uncommon report at present and the Authority will study the potential for integrating extra alert methods. It ought to be taken under consideration that not each file is examined, and never each piece of knowledge within the elements instantly and considerably impacts the worth of the transaction, and due to this fact, even in a case that’s examined, not all information on the traits of the property is essentially examined.
“With properties which are recorded within the Land Registry and don’t seem within the Property Registry, the Authority says that “a reporting obligation can’t be utilized to operations that don’t represent a sale. Nevertheless, the Tax Authority has been working for a while to obtain information from the Land Registry/Inheritance Registry and different our bodies and combine them into the Tax Authority’s methods, however this can be a technically and operationally complicated challenge that requires loads of time and assets.”
Concerning the dealing with of requests for evaluation corrections, “The Tax Authority accepts the auditor’s remark that the time for dealing with requests for evaluation corrections ought to be shortened and is engaged on the problem.”
Printed by Globes, Israel enterprise information – en.globes.co.il – on October 21, 2025.
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