Tax evader: 'It slipped between my fingers'

Israel Tax Authority conducts audits among businesses using computer software to manage accounts. 40% did not record income.

Mordechai Sones,

Tax evasion
Tax evasion
iStock

The Israel Tax Authority has conducted audits among large businesses that use computer software to manage their accounting systems.

The ITA conducted 15 audits in the assessment offices in jurisdictions of Rehovot, Holon, Tel Aviv and Kfar Saba. The audits revealed that 40% of the businesses examined did not record income as required by law.

Non-reportage of income in the amount of NIS1,000,000 was discovered at a web development and Internet advertising business. The business owner and his accountant claimed, "We don't have to issue an invoice on bank transfers."

A restaurant bar in Rishon Letzion was audited and discovered that revenues of about NIS 80,000 for four events that took place there were unreported. The proprietor explained: "I have a new employee." A team of investigators was sent to the site for further checking.

Examination of a dental clinic revealed an initial non-reporting of income amounting to NIS 80,000, and this by examining only a small part of the accounting system. This clinic was also sent a team of auditers for further checking.

In a Tel Aviv small events hall, there was no income reported from NIS 8000 paid for an event held there. The owner of the hall claimed, "It was a small event." A hall in Rishon LeZion failed to record income of NIS 60,000. The owner of the hall explained, "I received a loan of NIS 50,000 and NIS 10,000 was a check I received for closing an account."

Another event hall in Rishon Lezion did not record income received from 25 checks various customers had paid. In this case, the business owner claimed, "I put every customer check in an envelope, it's for account closure."

"The audit was carried out as part of the tax authorities' extensive activity against tax evaders and 'black' capital. It is as part of the policy to increase enforcement and improve deterrence, among other methods, by conducting field operations aimed at reporting and collecting real tax revenue and balancing the burden put on citizens."


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