A pivotal ruling by the appeals committee determined that construction companies winning projects under the 'Price for the Resident' program are not required to pay purchase tax on land. The court found that these projects do not constitute a purchase of 'real estate rights' due to the extensive state control over project conditions. This decision may compel the Israeli Tax Authority to refund hundreds of millions of shekels to the affected contractors. The Tax Authority stated it would review the ruling. This decision raises questions about the distinction between tax and accounting rules and how the state manages land sales at reduced prices for affordable housing construction. Critics argue that the state did not merely hire contractors for construction services but sold land at low prices, allowing companies to build housing for lottery winners and the open market.
