M and S (father and son/name on file), owners of grocery stores in Meah Shearim and Geula, have been arrested by Tax Authority officials for alleged tax evasion. The two were arraigned before Jerusalem Magistrate Court and ordered detained until Thursday, 25 Shevat.

Working with VAT inspectors, income tax officials suspect the father and son team, who own a number of companies which have been operating since January 2013. These companies operate four minimarkets in the areas mentioned along with two storage facilities and are alleged to have evaded both income tax and value added tax by filing false tax returns.

They reported an annual turnover of NIS 44 million in 2014, but inspectors explain following their investigation, their actual turnover is much higher and they have conducted significant dealings without reporting the income.

A search of their homes in the Har Shmuel neighborhood was conducted on Monday, 22 Shevat, as well as their businesses in Meah Shearim and Geula. The inspectors carrying out the search were accompanied by heavy security including border police and Yassam commando police. They were attacked with rocks, dirty diapers and other items.

A family member was caught trying to hide NIS 7,000 in dirty diaper that was tossed into the garbage. Safes were also found in the home which contained “a lot of jewelry” according to the report, and inspectors have learned the two own “a real estate worth NIS millions” that was registered in the names of their children in recent years during a period they reported a drop in their earnings.

(YWN – Israel Desk, Jerusalem)