Father, Daughter and Accountant Investigated for 3.3M Shekel Tax Evasion
Israeli tax authorities are investigating a father, daughter, and their accountant for allegedly concealing 3.3 million shekels in income. The Rishon LeZion Magistrate's Court released them under restrictive conditions as the investigation continues.
An investigation by the Central Tax Investigations Office is underway against a father, his daughter, and their accountant on suspicion of failing to report income amounting to approximately 3.3 million shekels and evading tax payments over several years. The suspects were brought this week before the Rishon LeZion Magistrate's Court, which decided to release them under restrictive conditions.
Establishment of the Company and Share Transfers
According to the arrest request, in 2017 the father, Riyad Masawra, established a company engaged in providing safety testing and training services in the workplace. Since he was undergoing insolvency proceedings at the time, he registered his wife as the shareholder of the company.
Subsequently, after a short period, the father transferred the company's shares to his daughter, Samar Masawra. Several years later, the shares were transferred once again, this time into the hands of the suspect's wife. In 2025, the company announced the cessation of its operations and closed its file with VAT.
The investigation began following a routine audit conducted at the Netanya Assessing Officer's office. During the audit, a suspicion arose that the suspects were not reporting their incomes and were evading tax payments over several years. Consequently, the file was transferred to the Central Tax Investigations Office for handling.
Findings of the Tax Authority Investigation
From the findings of the investigation, it appears that over the years, the company's financial reports showed a growing owner's withdrawal balance that increased year after year. According to the Tax Authority, this balance is subject to tax by the shareholder, and therefore it should have been reported as income within the framework of the personal reports submitted.
It also emerged from the investigation that the owner's withdrawal balance was not reported in the capital declaration submitted by the daughter in 2022 to the Tax Authority. According to the investigation's findings, the total unreported income stands at approximately 3.3 million shekels.
«The investigation reveals that the owner's withdrawal balance was omitted from the financial statements and personal reports submitted to the authorities.»
Involvement of the Accountant and Court Proceedings
The suspects' accountant, Fuad Jaber, was also included in the investigation. According to the Tax Authority, Jaber prepared the company's reports throughout the entire period and was aware of the owner's withdrawal balances presented in the financial statements.
The investigation shows that the accountant did not include the said income in the personal reports he prepared and submitted for the shareholders.
This week, the investigation became public, and within its framework, searches were conducted and evidence was seized. In addition, the suspects were questioned and testimonies were collected from other involved parties in the case.
Subsequently, the father, his daughter, and the accountant were brought before the Rishon LeZion Magistrate's Court. The court decided to release the three under restrictive conditions. The Tax Authority emphasizes that the investigation is ongoing.
