Former Tax Authority Senior Official Charged in $7.5 Million Tax Evasion Scheme

Israel's State Prosecutor's Office has filed an indictment against Shimon Cohen, a former senior official at the Israel Tax Authority, accusing him of evading taxes and laundering NIS 29 million (approximately $7.5 million). Cohen, who served for 15 years at the Tax Authority, including as head of professional divisions, is also charged with aiding others in tax evasion and violating tax reporting laws.

Also indicted in the case are businessman Dudi Appel, Cohen's former partner at his accounting firm Orly Tal, and clients Zvi Shpitz and Haim Salter. The indictment details five separate charges against Cohen, including allegations that he concealed NIS 8.4 million in brokerage fees from a German real estate deal involving businessman Diego Marinberg and Amir Dayan. Cohen allegedly transferred these funds to a company he established, Rilon, and failed to report them to the tax authorities.

Further charges involve Appel, a bankrupt contractor. According to the indictment, Appel, who did not receive brokerage fees for the German deal, approached Cohen to receive a portion of the funds. To conceal these payments from the receiver of bankruptcy and tax authorities, Cohen allegedly arranged fictitious loan agreements between Appel and his sister and son, facilitating the transfer of NIS 3.5 million to Appel through these false agreements.

In conjunction with the indictment, the prosecution has also requested the freezing of assets worth tens of millions of shekels. These include 29 apartments in Tiberias valued at NIS 29 million, another apartment in Ramat Gan worth NIS 1 million, two homes in Tel Aviv valued at NIS 19 million, a property in Tiberias worth NIS 1.18 million, and two luxury vehicles.

Attorneys for Shimon Cohen called the indictment "utterly bizarre" and baseless, predicting it would collapse in court. Orly Tal's legal representative stated she is confident her client's conduct was impeccable. No response was received from Zvi Shpitz's attorney.