Tax Authority Conducts Major Raids, Catches Dozens of Businesses Evading Taxes

Israel's Tax Authority recently conducted a series of large-scale inspections across the Northern and Sharon regions, targeting businesses to ensure compliance with bookkeeping regulations, income reporting, and the cash-use reduction law. During these operations, 161 businesses were examined, with 93 found to have not reported income. Numerous violations of the cash-use reduction law were also discovered.

The sweeps took place in various locations including Tiberias, Karmiel, the Golan Heights, Afula, Nazareth, Netanya, and Haifa. The inspections involved mystery shopping and preliminary surveillance across diverse business sectors. In the Haifa area, market stalls were particularly scrutinized, revealing widespread failure to report income, improper bookkeeping, unauthorized use of bookkeeping exemptions, and cash-use law breaches.

Specific cases highlighted included a wholesaler in Tayibe advertising on TikTok who failed to report tens of thousands of shekels in income. In the Sakhnin area, nearly 90% of businesses inspected either failed to report income or maintain proper books. Examples include a butcher shop in Arraba where a prior purchase was not recorded, with the owner claiming ignorance. A clothing store owner also cited unfamiliarity with regulations when a purchase went unrecorded. In the Golan Heights, a garage was found to have not reported 136,000 shekels in income, with the owner citing outstanding debts.

In Netanya and its surroundings, over 60% of businesses inspected failed to report income received through various methods including bank transfers, payment apps, and cash. The Tax Authority stated that the National Unit for Bookkeeping Management will continue its enforcement efforts to combat the black market and tax evasion, aiming to improve deterrence, ensure accurate reporting and tax collection, and promote equitable burden-sharing among citizens.