The mother of a child with special needs complained to the Office of the Ombudsman that the Israel Tax Authority (Tax Authority) had rejected her request to transfer the income tax credit points that were registered on her name to her husband, the father of the child.
According to the Income Tax Ordinance [New Version], if an Israeli resident had a paralyzed, blind or retarded child during the tax year, or if his spouse had such a child, then in calculating his or his spouse's tax, two credit points shall be taken into account for each child.
The complainant claimed that she had registered herself at the Tax Authority as the spouse eligible for the credit points, but after doing so had realized that her work income was low and that she would thus not be entitled to take advantage of the credit points; hence it was preferable that the credit points be registered on her husband's name. She had contacted the Tax Authority two days after the initial registration and requested to change it, but her request had been denied.
Following the Office of the Ombudsman's inquiry, the head of the Tax Authority online information and services center (OISC) in the city of Rosh Ha'Ayin spoke to the complainant's employer and asked him to declare that during the tax year the complainant had not been given, and would not be given, the credit points registered on her name. On the basis of this declaration, the Tax Authority transferred the credit points to the complainant's husband and informed the complainant of the decision.
This constitutes an exceptional proceeding, since in general it is not possible by law to change the identity of the person receiving the credit points within the same tax year.
The Office commended the OISC in Rosh Ha'Ayin for its swift handling of the matter and for its willingness to look for a creative and flexible solution for the complainant.