Israel Tax Authority inspectors visited a store selling tashmishei kedusha in Kiryat Yam, with agents finding the store failed to report NIS 400,000 in income.

The inspectors noticed the store owner did not report income earned by credit cards, as he explained those sales are reported to his accountant, who would then report the income to authorities. When inspectors contacted his accountant, he responded that he never received such reports from the store owner.

When it became apparent to inspectors that the amount of non-recorded credit income in 2018 amounted to 28,087 shekels and in 2019 to 25,037 shekels, they intensified the examination and contacted the credit company, which transferred all the required data pertaining to his account.

Investigators from the Investigations Department joined the inspectors on site and discovered that this is a methodical business for tax evasion, and it emerges that they have concealed income of NIS 400,000. The owner of the store continued his claim and told the investigators that he was sure his accountant was reporting the income. He was questioned and the file was transferred to the criminal prosecution unit for further processing.

This and other issues were part of an audit carried out by the Haifa appraisal office in various businesses in and around Haifa, including Tirat HaCarmel, Kiryat Ata, Kiryat Yam, Rechasim, Kiryat Chaim, Dalit El Carmel, and Safiya. The inspectors visited about 87 different businesses, which revealed that 16% of the businesses examined did not report income as required by law.

A gardening contractor from Haifa, did not record income of NIS 27,000, claiming that he intended to register at the end of settling accounts with the customer in one case.

A lawyer from Haifa who did not record five bank transfers to his account in the amount of NIS 106,951 claimed: “It is my mistake that I did not issue receipts. I promise to register everything I receive immediately.”

An examination of the receipt books of a kindergarten in Haifa found that seven checks in the amount of NIS 23,186 received from parents for the months of January and February were not recorded. The teacher told the visitors that she records the income after the checks are deposited and when she is free.

Another kindergarten teacher, also from Haifa, claimed: “I was sure I recorded the amounts and it may have escaped my mind” – when she was asked to explain five checks in the amount of 17,500 that were not recorded in the business books.

An examination of the books for a business dealing in shades revealed that a post-dated check in the amount of NIS 2,500 was not recorded in the books as required by law.

The store owner quickly explained to the visitors: “I was supposed to meet my wife and give her the check to put in the bank and issue a receipt. I have no intention of hiding income.”

During a visit to a Kiryat Ata construction site, a plaster contractor was found working on the site. An examination of his books showed he is not even registered with tax authorities and does not report any income whatsoever. The contractor explained, “This is my first job and I am trying to determine if it will work out, and if it does, then I will open a file with tax officials”.

(YWN Israel Desk – Jerusalem)