The tax authorities are examining the taxation of kablanim (builders) who are left with unsold apartments.
The tax administration wants to lower the prices of entrepreneurs who hold unsold apartments in new projects, to which they respond: “an undemocratic gesture.” Furthermore, the tax administration will verify whether the entrepreneurs’ reports on profits are accurate.
“This is a movement we are examining with the Ministry of Finance, in order to contribute to the decrease in housing prices, which concerns thousands of unsold apartments held by kablanim, even though construction is completed because they do not want to lower prices. “We are currently examining the builders for the unsold apartments to force them to lower the price and sell the apartments,” said Shai Aharonovitch.
In response, the entrepreneurs present in the audience stated that “this is an undemocratic gesture.” Aharonovitch promised that a statement from the Ministry of Finance and the tax administration would be published in the coming days.
Aharonovich announced another piece of bad news regarding the reports submitted to the tax administration: “We have problems informing ourselves,” Aharonovich said. “Therefore, the tax administration will include in its work plan the subject of auditing kablanim and the reports they submit, in order to examine whether the profit percentage we receive corresponds to their actual profits in the projects.”
