Over one of every ten Jerusalem business owners are hiding income from the Israel Tax Authority, inspectors have learned following a recent operation in the capital. In fact, after inspectors visited businesses to determine if they record income as the law compels, they learned 11% do not record income as they should.

Tax officials reportedly visited 182 businesses in the Jerusalem district including stores, architects, building companies, NGOs and even tax advisors. Citing one example in an architect’s office, inspectors found checks totaling NIS 64,000 but they were not recorded for tax purposes.

In another case, in a tax advisor’s office, a bank transfer of NIS 11,000 was discovered but it was not recorded for income tax officials. One store, which deals in ceramic products, had a check for NIS 25,000 which was also unrecorded. The owner insists it was a guarantee check and not a payment, permitting the client to buy items on credit.

Tax officials report they routinely visit different areas of the country, including undercover agents making purchases in stores or entering offices and inspecting how they record income towards determining if a business complies with the law.

(YWN – Israel Desk, Jerusalem)