The non-profit association for the management of kindergartens took in NIS 112,000 in the period of a month, money received from parents, but failed to record the payments in the books as required by the Israel Tax Authority.

The response of a committee member was not long in coming, and he said: “We do not make out receipts because the money is received by the teachers, who have joint meals and Rosh Chodesh parties, as well a buying equipment for the kindergarten.” When asked if the teachers received a salary, he replied: “We pay their salaries from the funds received from the Education Ministry.”

A business inspection of a company that makes marble tombstones revealed that there were revenues of NIS 40,000 that were not recorded in the books, as well as invoices that were recorded for part of the amount actually paid. In addition, a notebook recording income from various clients was found. The business owner’s evasive answer was: “I do not agree with what is written.” The continued handling of the business owner was transferred to the Jerusalem and Southern Investigations Department.

These and other cases occurred this week during an audit of income tax in businesses in Greater Jerusalem, which included 157 reviews, among which it emerged that only 8% of the businesses examined did not record income as required, while the others, the majority, did. The operation, headed by the Jerusalem Assessing Officer, selected businesses in the field of commerce, services and the liberal professions.

In a review of a company providing heating solutions, a bank transfer to the business account was found at NIS 3,800 and was not recorded in the books. The response of the business owner was: “We did not manage to issue a receipt. We are diligent in recording income.”

In comparison, a 32,000-shekel check was received two weeks earlier and was not recorded in the store’s books. The owner of the store quickly explained to the visitors: “I was abroad and returned today, and only I write down the receipts.” The visitors continued to ask why he did not register the check before traveling abroad, and his answer was: “I issue receipts when I handle the client. If you were to enter in 15 minutes, the check would have been registered.”

In a marble business, there was a deposit of NIS 20,000 that was not recorded in the books. The owner replied: “I received the check two or three weeks ago and, in your presence, I have now issued a tax invoice.”

Tax officials explain, “these audits were conducted as part of the Tax Authority’s extensive activity against tax evaders and black capital. This is part of the policy of increasing enforcement activity to improve and maintain deterrence, expanding intelligence, among other things by conducting field operations aimed at reporting truth and collecting real tax, thus increasing the level of equality among citizens.”

(YWN Israel Desk – Jerusalem)