Israel Tax Authority inspectors last week visited 200 businesses in Yerushalayim to conduct inspections. This includes nonprofit NGOs. The visits were conducted late on Thursday, 11 Kislev 5774 and during the evening hours, focusing on cafes and places of entertainment.

There were also inspections during the morning hours. Inspectors visited businesses and NGOs. Inspectors explain that the norm is that during the morning hours, about 12% of income is unreported but that figure rises as the day move on, reaching 24% of unreported income during the later day and nighttime hours. The relatively new pubs operating in Machane Yehuda were among businesses targeted and they did not fare well.

In one well known Yerushalayim nonprofit organization, considerable sums of cash were found in envelopes. Officials explained the donations were for textbooks and other assistance for poor families and they simply have not found the time to record the donations with receipts is required by law. This was more or less the explanation given from all businesses found to have income without having issued tax receipts.

One business was found with 4,500 NIS in unrecorded checks. The bookkeeper explained it was simply a time matter and not an effort to hide income.

(YWN – Israel Desk, Jerusalem)