The huge amount collected by the tax authority from taxpayers

The Tax Authority conducted an extensive VAT operation, as part of increasing collection activity and strengthening deterrence in the fight against black capital and tax evaders. The operation was conducted by all the VAT offices scattered throughout the country in cooperation with the National Collection Enforcement Unit, the book management units and the Israel Police, and as part of it approximately 2,204 Dealers who accumulated VAT debts, collected over NIS 196 million, and confiscated 25 vehicles.

Alongside the collection operations, audits were also conducted among 161 dealers in all trade branches. For example, during an audit in the Jerusalem area, it was found that a dealer submitted VAT returns for a refund over a long period of time in the amount of approximately 265,000 NIS, and this without having any expenses at all. In his investigation at the Jerusalem VAT offices, he claimed that he had built a center for rehab from drug and alcohol addictions In area A (area under security and civilian control of the Palestinian Authority).

When asked to show the business books, he claimed that he did not have them and that all the documents were with a CPA who lives in Hebron and that he was out of touch and therefore prevented him from showing his books to the auditors. Following the findings of the audit and the investigation into the case, the businessman was charged the entire amount of input tax that he illegally claimed in the years It was also determined that his books were managed in a substantial deviation in all the years of the audit (2019-2023) and the case was transferred to the legal department for the examination of the continuation of the criminal procedure and the filing of an indictment against him.

During another audit conducted for a renovation contractor in the Gush Dan area, it was found that the contractor adds the number 0 to the tax invoices, through which expenses are required in the business, it was also found that he does not report all of his transactions. The findings of the audit revealed that in this way VAT was avoided in an aggregate amount of approximately NIS 243,000. Following the audit, an assessment was issued to the contractor.

In another audit, with a woman engaged in the field of construction and renovations in Petah Tikva, it was found that her husband is the actual manager of the business and that he “forgot” to report transactions in the amount of approximately NIS 3 million. According to the dealer, the transactions were not reported due to her husband's workload and lack of concentration. Following the findings of the audit, the case was transferred to further treatment at the civil level and issuance of an assessment as well as further treatment at the criminal level.