Givot investors threaten revenge over Sheshinski

Investors want Rabbi Ovadia Yosef to condemn the proposals, and say they will get even with Minister of Finance Yuval Steinitz.

Does the answer to the danger of a steep rise in taxation on oil and gas discoveries lie with Rabbi Ovadia Yosef? According to the investors in Givot Olam Oil Exploration LP (TASE:GIVO.L), the answer is yes, the business section of Hebrew daily "Ma'ariv" reports today.

According to the report, Givot's investors are planning various steps to prevent the recommendations of the Sheshinski committee from being implemented. The recommendations are designed to raise substantially the state's share in the profits from oil and gas discoveries, at the expense of the investors in them.

David Weinberg, one of the main people behind the moves, has initiated an appeal to Rabbi Yosef to inform the public of the severe implications in Jewish law of the government's expected action.

"Is it permissible to change the tax regime after the investors have put in their money and invested in exploration and production in reliance on the existing regime?," Weinberg asks, adding "There is a Jewish concept of mi shepara, which is that a person who unilaterally withdraws from a commercial arrangement that has been agreed only informally and cannot be enforced by a court will face a curse and enforcement from heaven for failing to keep his word."

Weinberg states that, as a member of the Likud party, he will exact revenge From Minster of Finance Yuval Steinitz at the next party primaries, as will other Likud members.

Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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