Tax Officials: Driving School Mogul Hid Millions
A Haifa court on Sunday extended the remand of a Caesarea resident who is accused of trying to hide NIS 12 million ($4.7 million) that he took in from his national chain of driving schools. The suspect owns 13 such schools around Israel, tax officials said.
The suspect is accused of holding substantial assets in cash and hiding them in safes and stashes in a number of locations. In addition, authorities said, he ran a loan scam with his mother, in which he purported to have borrowed large sums from her in order to explain away his large holdings.
The suspect was arrested last week on suspicions that he hid income between 2007 and 2013. According to officials, he kept a legitimate set of books, issuing receipts to students, while reporting a different sum to tax authorities. In 2013, for example, he took in NIS 11.2 million, but only reported NIS 6.3 million in income, officials said.
With the excess cash, he bought real estate, registering the properties in his mother's name, the officials said.