Accountant Arrested for Allegedly Failing to Report NIS 60 Million Client Exit

Tax Authority officials have arrested an accountant from Rosh Ha'ayin on suspicion of failing to report approximately NIS 60 million in income from a client's stock sale. The client, a significant shareholder in an innovative technology company, reportedly sold their shares in an exit deal to an American company. The accountant, Shlomo Tzedekia, allegedly handled the transaction, the client's annual report, and capital gains filings, yet did not include the income from the stock sale in the client's personal tax return.

Investigators believe this omission led to approximately NIS 1.8 million in 'Mas Yasef' (additional tax) not being paid. Computer analysis by the Tax Authority's intelligence unit revealed the client received a cumulative NIS 60 million between 2023 and 2024 from the stock sale. Funds were transferred via a trustee who withheld 30% as a tax advance. The additional tax, Mas Yasef, is levied at 3% on taxable income exceeding a certain threshold.

Tzedekia was brought before the Rishon LeZion Magistrate's Court and released under restrictive conditions. Searches were conducted, evidence seized, and other involved parties were questioned as the investigation continues. The Tax Authority noted that withholding tax does not exempt individuals from reporting obligations or paying Mas Yasef if applicable.

Mas Yasef applies to one-time income like stock sales, option exercises, and lottery winnings. An additional 2% Mas Yasef will apply to capital gains exceeding the threshold starting in 2025. Tzedekia is presumed innocent until proven guilty.