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

Israel's Tax Authority is investigating a father, his daughter, and their accountant on suspicion of failing to report approximately 3.3 million shekels (about $880,000 USD) in income over several years. The investigation, initiated by the Tax Authority's Central Investigations Unit following a routine audit by the Netanya assessment officer, centers on a company established in 2017 that provided workplace safety training and inspection services. Initially, the company's shares were registered to the suspect's wife due to his bankruptcy proceedings, later transferred to his daughter, and then back to his wife in 2023.

The core of the suspicion involves a growing "owner's withdrawal" balance in the company's financial reports, which legally constitutes taxable income for the shareholder. Investigators allege that this income was not reported on the personal tax returns of the daughter for 2022, nor by the father's wife after the shares were transferred back to her.

The accountant, who also serves as a lawyer and represented the company and its shareholders before the Tax Authority, is accused of preparing the company's financial statements throughout this period. He allegedly knew about the owner's withdrawal balance but did not include it as income on the personal tax filings he prepared for the shareholders.

On September 7, 2026, a formal investigation commenced, involving searches, evidence seizure, and interrogations. The suspects are accused of violating tax laws by failing to report income. A Rishon LeZion Magistrate's Court approved an agreement releasing the suspects under restrictive conditions, including a 60-day no-contact order with other involved parties (except for non-investigation related calls between father and daughter), a prohibition on obstructing the investigation, and significant financial guarantees including personal and third-party sureties and cash deposits for each suspect. The investigation is ongoing.