Millions in Income Not Reported: Accountant and Tax Advisor Investigated on Suspicion of Tax Offenses

In depth

The Israel Tax Authority has opened an open investigation against an accountant and a tax advisor on suspicion of assisting a controlling shareholder in a public company in concealing income. According to Bizportal, the two were questioned on suspicion of concealing income from dividends and evading full tax on them. According to Ice, they falsely reported 16.5 million shekels in dividends and concealed owner withdrawals of 14.6 million shekels.

According to Calcalist, the accountants did not report on cash withdrawals made by the controlling shareholder, and did not properly report the distribution of dividends, so that the tax rate paid was 25% and not 30%, and 800 thousand shekels were removed from the state treasury. According to Maariv, the suspicion is of failure to report millions of shekels in income of the controlling shareholder.

The court released the two on restrictive conditions, and barred publication of their names and the name of the client.