Tax Authority Investigates Father, Daughter, and Accountant for Alleged $3.3 Million Tax Evasion

The Israel Tax Authority's Central Investigations Unit is conducting a criminal investigation into a father, his daughter, and their accountant for allegedly failing to report approximately 3.3 million shekels (about $900,000 USD) in income over several years, thereby evading taxes. The suspects were brought before a judge at the Rishon LeZion Magistrate's Court and subsequently released under restrictive conditions.

The investigation began following a routine audit by the Netanya Tax Assessor's Office, which raised suspicions of undeclared income. The case was transferred to the Central Investigations Unit, where it was discovered that the father, Riyad Masawra, established a company in 2017 providing workplace safety testing and training. Due to his insolvency proceedings, his wife was initially listed as the shareholder, with shares later transferred to their daughter, Samar Masawra, and then back to the wife. The company ceased operations and closed its VAT file in 2025.

Investigators found that the company's financial statements showed a growing owner's withdrawal balance year after year. According to tax law, this balance is taxable to the shareholder and must be reported in personal tax returns, which did not happen. Furthermore, this owner's withdrawal balance was omitted from the daughter's capital gains declaration in 2022.

Suspicion also fell on the accountant, Fouad Jabr, who prepared the company's financial statements throughout the period. He was allegedly aware of the owner's withdrawal balances but did not include them as income in the personal tax returns he prepared for the shareholders. The investigation became public this week when tax investigators raided premises, seized evidence, and collected testimonies. The investigation is ongoing.