Man Ordered to Pay Double Tax on Fictitious Invoices Despite State Receiving Funds
Translated & summarized from Bizportal by baba
Lior Sasson has been ordered by an Israeli court to pay over 1 million shekels in double tax for his involvement in distributing fictitious VAT invoices. Despite the original tax amount of approximately 1.37 million shekels being paid to the state by others, Sasson's appeal was rejected. The court ruled that the double tax serves both to compensate the state and deter fraud, and that Sasson's role in facilitating the scheme was significant. His personal hardships were considered but deemed insufficient to warrant further reduction of the penalty.
The story in 6 lines · by baba
- Lior Sasson must pay 1.07 million shekels in double tax for fictitious invoices.
- The original tax amount of 1.37 million shekels was already paid to the state.
- Sasson received commissions for circulating 174 fake VAT invoices between 2010 and 2014.
- A Jerusalem court rejected Sasson's appeal, upholding the double tax penalty.
- The court cited Sasson's significant role in facilitating the tax fraud scheme.
- Sasson's personal hardships were considered but did not justify further penalty reduction.
An Israeli court has upheld a hefty double tax penalty against Lior Sasson for his role in distributing fictitious VAT invoices, even though the actual tax amount was already paid to the state by others involved in the scheme. Sasson received between 1,000 and 2,000 shekels for each fake invoice he helped circulate between 2010 and 2014. The Jerusalem District Court, in a ruling on October 13, rejected Sasson's appeal, leaving him liable for 1,078,669 shekels in double tax.
Initially, the Jerusalem VAT director had demanded over 2.15 million shekels, citing a law that requires individuals who issue invoices without authorization to pay double the tax amount listed. Sasson's appeal argued that his involvement was minimal and that the primary purpose of the double tax, to recover funds for the state, was moot since the tax had already been paid. He also pointed to the fact that he did not personally issue any invoices and that some of the invoices had expired.
Sasson was convicted in a lower court for issuing 174 VAT invoices without entitlement and facilitating tax evasion. His role involved connecting the owner of a cleaning services company with another individual who sold invoices, acting as a go-between and receiving a commission. The total value of transactions for these invoices reached nearly 9.7 million shekels, which the company used to illegally deduct input tax.
In his appeal, Sasson's attorney argued his client's role was marginal and that he was not the "driving force" behind the offenses. He also highlighted Sasson's personal hardships, including drug addiction, low income as a cleaner, and difficult family circumstances, suggesting these warranted a reduction in the penalty. The state, however, countered that Sasson played a significant role in the fraud by brokering deals and securing commissions, and that the criminal penalty does not replace the civil obligation of double tax.
Judge Avigdor Dorot ruled that the double tax is a mandatory consequence under the law, serving both to restore the treasury and deter future offenses. He found that Sasson's actions, including facilitating the invoice sales and negotiating terms, constituted a substantial contribution to the tax fraud. The judge noted that Sasson's difficult personal circumstances had already been considered in the criminal sentencing and in a prior reduction of the tax demand, and that further reduction would undermine the law's objectives.