Tax Authority Uncovers Alleged $3.3 Million Tax Evasion Scheme

Israel's Tax Authority has revealed an ongoing investigation into a father, his daughter, and their accountant, who are suspected of evading taxes on approximately $3.3 million in income over several years. The investigation, led by the Central Region Tax Investigations Unit, began after a routine audit in Netanya uncovered discrepancies in the company's financial reports.

According to the tax authority, the father, Riyad Masawra, established a workplace safety testing and training company in 2017. Due to his own financial difficulties at the time, he initially registered his wife as the shareholder. The company shares were later transferred to his daughter, Samar Masawra, and subsequently to the wife again. The company ceased operations and closed its VAT file in 2025.

Investigators found a growing balance of owner withdrawals in the company's financial statements year after year. The Tax Authority asserts that this balance is taxable income for the shareholder and should have been reported in their personal tax filings. The daughter's 2022 tax declaration also failed to report this balance, according to the findings.

The accountant, Fouad Jabr, is also under investigation. The Tax Authority alleges that Jabr prepared the company's financial statements throughout the period and was aware of the owner withdrawals, yet he did not include this income in the personal tax returns he prepared for the shareholders.

The investigation recently became public, involving searches, evidence seizure, and interviews with the suspects and other involved parties. The father, daughter, and accountant were brought before the Rishon LeZion Magistrate's Court and released under restrictive conditions. The Tax Authority stated that the investigation is ongoing.