Israel Tax Authority Inspectors visited businesses in southern Israel as part of its ongoing tax enforcement effort. The inspectors visited 348 businesses in Ashkelon, Beersheva, Ashdod, Kiryat Gat, Arad, Yerucham and other municipalities. They learned that in 8% of the businesses, income was not recorded as required by law.

During a visit to a matzah factory in Ashkelon, inspectors registered NIS 15,000 of unreported income. The case has been handed over to a tax official for further investigation. During a visit to a travel agency inspectors documented NIS 12,000 in unreported income. The owner explains it was nothing more than an honest error, not an intentional effort to defraud tax officials.

In Beersheva, inspectors visited a number of businesses and found that in one, NIS 17,000 in income was not reported in March 2016. When asked to explain, the owner stated he is new at being an independent businessman and not exactly clear on the law and how one must register income.

In another business, NIS 3,500 in undeclared income was found. That owner explained “I planned to write a receipt and simply did not get to it”.

Acting on a tip, inspectors visited a garage and learned the owner received NIS 8,000 for working on cars but did not report the income to tax authority.

(YWN – Israel Desk, Jerusalem)