Tax Authority Audits Find Over Half of Businesses in Northern Israel Failed to Report Income

The National Unit for Bookkeeping Management within the Tax Authority conducted a series of audits in numerous locations across northern Israel and the Sharon region, including Tiberias, Karmiel, the Golan Heights, Afula, Nazareth, Haifa, Netanya, Tayibe, and Sakhnin. During the operation, which involved mystery shopping and preliminary observations of businesses from various sectors, 161 businesses were inspected. It was discovered that 93 of these businesses, representing 57% of those checked, did not report any income. Additionally, many instances of violations of the cash use reduction law and non-compliance with bookkeeping regulations were found, particularly in most stalls inspected at Haifa's markets.

Several notable cases emerged during the operations. In Tayibe, a wholesaler was found to have advertised and earned tens of thousands of shekels without reporting the income. In the Sakhnin area, deficiencies were found in 90% of the inspections, including a butcher shop in Arraba where a mystery shopper's purchase was not recorded, and a clothing store whose owner claimed to be new to the business. In the Golan Heights, a garage was discovered to have failed to report income totaling 136,000 shekels. In the Netanya area, more than 60% of businesses failed to report income received through cash, bank transfers, and payment apps. The Tax Authority emphasized that its operations against the black market and tax evaders will continue indefinitely to ensure accurate reporting and equitable tax burden distribution.