Tax Authority investigates major real estate case: contractor arrested

The real estate market has recently suffered from a wave of negative headlines: senior officials are being arrested, the Tax Authority is investigating the concealment of funds, and contractors' licenses are being suspended. Just a week ago, it was reported that businessman and contractor Dudi Appel is the main suspect in an investigation being conducted by the National Unit for Economic Crime Investigations (Lahav 433). Other senior officials were questioned alongside him. The primary suspicion involves an attempt to conceal rights to real estate assets and the smuggling of assets amounting to tens of millions of shekels.

Now, another case related to the construction sector has emerged. A construction company owner from Ramat HaSharon was arrested on suspicion of offsetting fictitious invoices totaling approximately 26 million shekels. Shmuel Gazit, a shareholder and director at Niti Pituach VeBniya Ltd., was brought before the Jerusalem Magistrate's Court. The court released him under restrictive conditions.

Gazit, a resident of Ramat HaSharon, was arrested as part of an investigation conducted by the Jerusalem Customs and VAT Investigation Department. According to the suspicion, between 2022 and 2025, the suspect deducted tax invoices in the company's books that are suspected of being fictitious, with the tax amount deducted standing at approximately 4 million shekels.

The court ordered the suspect's release under restrictive conditions, including a cash deposit, guarantees, a travel ban from the country for 180 days, and a prohibition on contacting those involved in the investigation.

In recent days, it was reported that the Registrar of Contractors at the Ministry of Construction and Housing suspended the licenses of five contractors after checks revealed that the engineering professional, on whose employment the license was granted, is not actually employed by the company. The contractors whose licenses were revoked are: A.K. Abu Shahin Ofar VeMischar Ltd., Shwarzberg Mordechai, Issa Marom Koach Adam VeShmira Ltd., Arminia Bniya Ltd., and Lumko Group Yazmut VeBniya Ltd.

According to the Registrar of Contractors, this is a serious violation of license conditions, as the license is granted based on the qualifications, experience, and employment of a designated engineer, which serves as the basis for registration in the Contractors' Register. In recent months, the state has also decided to revoke several licenses on the grounds of procedural violations.