State to compensate businesses harmed by protection rackets – here's what you may be entitled to

The Israel Tax Authority has launched a pilot compensation track for business owners affected by protection money extortion. Compensation, up to NIS 2 million, will be provided for direct damage to business property or residential homes, subject to filing a police complaint and lack of insurance coverage. The program applies to damages from September 24, 2026 to November 23, 2026, and claims must be submitted within seven days.

The Israel Tax Authority launched today (Sunday) a first-of-its-kind pilot compensation track for business owners harmed by protection money extortion (protektzia). The track aims to compensate for direct damage to business property or residential homes caused by refusal to pay protection money or after filing a police complaint. The compensation ceiling stands at NIS 2 million, and it applies to damages occurring between September 24, 2026 and November 23, 2026. Eligibility is conditional on several strict requirements: filing a police complaint recognized as related to extortion, proof that the business owner could not obtain insurance coverage for malicious damage or that their claim was denied, and presenting permits that the structure was built legally. Claims must be submitted online within just seven days from the date of damage, and it is forbidden to repair the damage before an assessor from the Property Tax department arrives. Processing of applications is expected to take up to eight months.