Accountant Arrested in Rosh Ha'ayin for Allegedly Concealing 60 Million Shekel Income

An accountant from Rosh Ha'ayin, Shlomo Tzedekia, has been arrested on suspicion of failing to report tens of millions of shekels in income on a client's tax return. The investigation, led by the Tax Authority's Central Investigations Unit, alleges that Tzedekia represented a major shareholder in an innovative technology company. He allegedly handled the client's annual tax filings and capital gains reports related to the sale of company shares to an American firm but omitted the substantial income received from the transaction.

According to the Tax Authority, computer analysis revealed that the client received approximately 60 million shekels between 2023 and 2024 from the share sale. While a trustee holding the shares withheld 30% tax at source, this was reportedly considered only a tax advance. The income was allegedly not included in the client's personal tax return. Authorities suspect that due to this non-disclosure, an additional 3% surtax, amounting to about 1.8 million shekels, was not paid on the income exceeding the threshold set by the Income Tax Ordinance.

During the investigation, searches were conducted, evidence was seized, and Tzedekia was interrogated. Other individuals involved have also provided testimony, and the investigation is ongoing. Tzedekia was released by the Rishon LeZion Magistrate's Court under restrictive conditions, including a 60-day prohibition on contacting other parties involved in the case. He must also report any changes in his address, employment, or phone numbers, refrain from obstructing the investigation, and appear for questioning and trial when required. To secure his release, Tzedekia signed a 200,000 shekel personal commitment, a third-party guarantee of 150,000 shekels, and a 10,000 shekel cash deposit or bank guarantee.

The Tax Authority emphasized that withholding tax at source does not exempt individuals from reporting income and paying surtaxes where applicable. This obligation extends to one-time income sources such as stock sales, employee option exercises, and lottery or gambling winnings.