An audit conducted at a Netanya company netted the Treasury half a million shekels in VAT. The company did repair work and installed showers but auditing revealed a 50,000 NIS missing sum on its reports despite the invoices appearing for this sum. The owner did not know about the work done on the invoices.
Inquiries revealed that a friend of the owner had performed the work and provided invoices but did not transfer the money to the company but rather took cash payments. The friend had never opened a tax account despite working in the shower installation field since 2011.
The friend opened a VAT account and when the amount of work he had done was revealed, he was given a fine of double taxation and required to pay 460,000 NIS in VAT.