Tax Evasion

The Tax Authority arrested a brother and sister suspected of running a sophisticated network of shell companies, whose sole purpose was the distribution and offsetting of fictitious invoices in unprecedented volumes for various companies.

The State Attorney's Office has indicted former senior Tax Authority official Shimon Cohen. He is charged with concealing income, tax evasion, and money laundering totaling 29 million shekels.

New data from the Jewish People Policy Institute reveals a surprising figure in Israeli society, as one group shows exceptionally high support for bypassing tax reporting and paying in cash without receipts.

According to the suspicion, a construction company owner from the center of the country deducted fictitious invoices through his company totaling approximately 26 million shekels, while offsetting input tax of about 4 million shekels. After being questioned by the Tax Authority, he was released under restrictive conditions.

The Tax Authority is investigating a dentist from Be'er Sheva on suspicion of failing to report income of millions of shekels. According to the suspicion, the gap between deposits and reports exceeded 10 million shekels, real estate assets were omitted from a capital declaration, and a residential address was not updated.

The artificial intelligence revolution is transforming tax collection in Israel. The Israel Tax Authority is transitioning from sample audits to analyzing 100% of reports, significantly increasing the likelihood of detecting undeclared income.

As part of a large-scale enforcement operation in Rahat that included the seizure of dozens of vehicles, inspectors encountered creative attempts to evade payment. In one bakery, a man was discovered posing as a gas technician while actually running a business without receipts on the premises, while a grocery store owner who hid a phone business claimed in his defense: "These are funds I received...

In a joint enforcement operation in the south, 26 vehicles and 7 trucks belonging to tax debtors were seized, and non-registration of income totaling approximately 1 million shekels and violations of the Cash Law amounting to 380 thousand shekels were uncovered.

The Central District Court in Lod has ruled that the acquisition of NSO was an "artificial transaction." The court determined that the loan financing structure was designed to evade 8.6 million dollars in dividend taxes.

A Be'er Sheva-based company owner is accused of deducting fictitious invoices, resulting in a VAT evasion of approximately 12 million shekels. The Customs and VAT legal department has notified the court of its intent to seek an actual prison sentence.

Tax offenses under aggravating circumstances in the construction industry: A company owner is accused of fictitiously increasing expenses to evade taxes. The indictment reveals that between 2019 and 2022, the defendants deducted input tax for transactions that were never performed.