"Armenian Church's tax evasion in Jerusalem a legal matter, not religious persecution" Israeli experts address the scandal

The Armenian Church in Jerusalem has once again found itself at the centre of a scandal—the Jerusalem Patriarchate accused the Israeli authorities of imposing "unjust, targeted, and dirty taxes" on the religious organization. "The Jerusalem Municipality is trying to confiscate property that has belonged to the Armenian Apostolic Church for centuries and auction it off in order to recover community debts that supposedly date back to 1994," stated the Patriarchate in its message on X. The Patriarchate insists that the existence of any debts has not been proven.

Is the situation truly as the Armenian Patriarchate presents it, or, as we have seen before, are the Armenians once again making a mountain out of a molehill by throwing around unfounded accusations? To get to the bottom of the matter, a Caliber.Az correspondent reached out to Israeli experts.

Political commentator from the Israeli TV channel ITON.TV Alexander Gur-Arie noted that, first and foremost, it is important to understand that the conflict at hand is not related to religious sites in Jerusalem, but rather to commercial real estate owned by various churches.

"The history of this issue goes back to 2003, when a law was passed introducing a municipal tax on commercial real estate owned by religious institutions. Prior to this, even such properties as hotels, restaurants, and other commercial enterprises affiliated with churches were exempt from taxation. However, at some point, it became clear that if commercial activities generate income, they should be taxed just like any other business entity.

It is important to note that this does not concern the taxation of temples, monasteries, or places of worship—they are still exempt from this tax. However, commercial properties such as hotels, pilgrim houses, restaurants, and other real estate used for profit-making purposes must pay municipal taxes just like any other business, which is quite logical," the political analyst emphasized.

The problem, according to Gur-Arie, is that the Armenian Church has refused to pay this tax for many years, resulting in the accumulation of enormous debts.

"At some point, they even declared a strike: for example, several years ago, the Armenians simply blocked the Church of the Holy Sepulchre for several days in protest. However, the Jerusalem Municipality continues to demand compliance with the law, which has led to even greater tension. Currently, the Armenian Apostolic Church is negotiating debt restructuring. Its representatives do not deny the need to pay the tax but are asking to be exempt from fines and penalties accumulated over the years. However, municipal authorities note that even at present, the church continues to fail to pay the tax, which complicates the situation.

From a legal perspective, if debts remain unpaid, property can be seized. This does not mean confiscation—commercial real estate can simply be seized, for example, a hotel may be closed until the debt is settled. This is standard practice in Israel: if a citizen does not pay a parking fine, their debt increases with penalties, and eventually, their car can be seized. Of course, if the debt recovery process is drawn out, the owner might lose their vehicle. The same applies to commercial real estate," the political analyst explained.

As for the land in the Armenian Quarter of Jerusalem, the political analyst notes that there have been a number of scandalous and conflict-ridden incidents associated with it.

"Several years ago, a scandal erupted in the Armenian Quarter of Jerusalem, within the fortress walls of the Old City, regarding a plot of land that had been used as a parking lot next to the seminary. At some point, representatives of big business proposed to the Armenian Church representatives to sell the land for the construction of a hotel. The deal was made quietly and approved by the Armenian Patriarch in Jerusalem, but when it became public, a scandal broke out. The sale was opposed not only by representatives of the Armenian community in Jerusalem but also in Echmiadzin. However, cancelling the deal proved difficult, as it had been legally formalized according to all the rules. Furthermore, the intermediaries, who had received large sums for organizing the deal, disappeared. As a result, the situation reached an impasse: the contractors who bought the land insisted on the right to build, while the Armenian Church attempted to annul the deal.

At some point, the conflict escalated—there were cases of vandalism, and hired unknown individuals attempted to seize the territory. It resembled scenes from the 1990s. The scandal peaked around 2019-2021, but even today, the situation remains unresolved," noted the political analyst.

According to him, some representatives of the Armenian Church present the situation as though there is an attempt to seize their temples and monasteries. In reality, no one is targeting religious sites—the issue concerns only commercial real estate that generates profit.

"A similar situation exists in the Jaffa district: the Armenian Church there owns a property used for concerts and events. But if tickets are sold, it becomes a business, not religious activity. Therefore, the municipality requires payment of the municipal tax, just like for any other commercial property. However, church representatives dispute this.

Essentially, we are witnessing a classic manipulation: an image of persecution of the Church is being created, even though the matter concerns basic tax obligations. The municipal tax is used for the city's development, street lighting, and the needs of all residents. Therefore, refusing to pay taxes under the guise of religion is, to put it mildly, inappropriate," Gur-Arie believes.

According to Roman Gurevich, Honorary Ambassador of the World Jewish Agency Sokhnut and political analyst, if municipal taxes are not paid in Jerusalem, the authorities have the right to impose fines, seize property, and take all legally prescribed actions. This has nothing to do with the nationality or religion of the individuals involved.

"The essence of the matter is that the law must be the same for everyone. The well-known scandal involving the sale of the plot in Jerusalem by the Armenian Patriarch, who sought profit, was also spun by the Armenian Church and diaspora as a new example of the persecution of Armenians. However, I believe that if the Patriarch had been an Arab or a Jew, nothing in this legal dispute or the process itself would have changed—simply because, if you are a citizen of this state, entered into a contract, and signed a document, you are responsible for it. But there is a sense that representatives of the Armenian community somehow consider themselves special and untouchable, above the demands of the law," the expert noted.

At the same time, according to our interlocutor, many strange things are happening in the Armenian Quarter.

"For example, on the disputed parking lot area, amidst a pile of construction debris, the 'Artsakh flag' suddenly appeared a few months ago, which, in my opinion, is utterly outrageous and unacceptable. Naturally, the authorities sent inspectors to remove this disgrace... It creates the impression that someone in the Armenian Quarter does not want to live peacefully and according to the laws of the State of Israel.

All these games and provocations are simply an attempt to draw attention, inflate a conflict, and turn what is a purely legal, municipal, or commercial dispute—like the case with the sold parking lot—into some kind of persecution based on ethnicity or something else. The approach is clichéd: 'They are attacking us, help us.' But in reality, no one is 'attacking' anyone, and no one is harming the Armenians. It's much ado about nothing and an abuse, in my view, of the fact that Israel upholds the rule of law. In Israel, the rights of every citizen and every community are respected. And we ask and demand that everyone follow and respect the country's laws and act accordingly. This is quite an obvious point," concluded Gurevich.