Two contractors from Jerusalem were arrested on suspicion of concealing millions of shekels in revenue from a construction and renovation project in the Yifei Nof neighborhood of the capital

A.Y. and F.N., contractors from Jerusalem, are suspected of concealing revenue of millions of shekels from a construction and renovation project in three buildings in the capital. Judge Elad Persky of the Jerusalem Magistrate’s Court accepted the request of the investigating unit and on July 19, 2018, ordered the arrest of the two and their subsequent release on bail. Investigation of the two suspects shows that they received 4 million shekels for their work. Y reported 440,000 shekels and N reported 800,000 shekels, and the remaining 2.8 million was not reported to the tax authorities.

According to the requests for detention that were submitted to the court by the Jerusalem Income Tax Investigators, Y, a contractor/entrepreneur who operates independently and as owner of WEA Building Structures Ltd. and N is a contractor and owner of Francis Francis, a construction company. According to the requests, the Tax Authority received information that Y, through subcontractor F, carried out construction and renovations in three buildings on Shaulzon Street in the Har Nof neighborhood of Jerusalem in the years 2011-2013, and concealed part of the financial proceeds they received and used fictitious invoices.

The homes of the two suspects were searched by authorities last week. Y admitted during his interrogation that he received about 4 million shekels for his work, but only reported 440,000 to the Tax Authority, and failed to report the balance of 3.5 million shekels. In his interrogation, N admitted that he reported only 800,000 shekels, and when asked about the balance not reported to the Tax Authority, he replied that he had not received more than that sum, even though he was presented with a document showing that he received the funds beyond the report.

It has also been learned that Y presented what officials believe are fictitious statements, confirming these invoices were given to him by N, who carried out the work on the ground. N told investigators the invoices are not his and therefore, he did not give them to Y.

(YWN Israel Desk – Jerusalem)