The tax is reportedly being retrospectively levied on yachts purchased more than a decade ago.

A group of 15 yacht owners are disputing being subjected to Israel’s so-called “wealth tax”, according to local business press reports. 

The tax amounts to between ILS60,000 - ILS60,000 ($17,145-$28,573) per yacht. 

But the owners have claimed that their vessels were bought to operate businesses in the sailing and marine sports sectors, not for private use, and that the tax therefore should not apply to them, sources reportedly told Globes.

Discussions are reportedly taking place between Israel’s taxman and several of the yacht owners, who have submitted objections to their tax assessments. Some of the owners had reached settlements concerning the value of their yachts, it was reported. 

Three months ago, it was announced that the wealth tax was being applied to all Israeli yacht owners.

As a result, the country’s tax authority began demanding payment of purchase taxes, even if the yachts were purchased over a decade ago, according to Globes. 

The tax is based on a law that entered into force in 2014, levying fees on luxury items including quad bikes and field vehicles, furs, antique furniture, yachts, water scooters, aeroplanes and other items. 

A 15 per cent purchase tax was set for yachts and aeroplanes imported to Israel.