Israeli Businessman Sentenced to 44 Months for Tax Fraud Scheme
Translated & summarized from Globes by baba
Avner Aluk, owner of Sagiv Technologies Fire Shielding Ltd., was sentenced to 44 months in prison for using fictitious invoices to illegally deduct 5.75 million shekels in input tax. The Ramla Magistrate's Court also imposed a 10-month suspended sentence and a 100,000 shekel fine. Aluk was convicted of multiple tax fraud charges, and the court considered his prior convictions. The ruling also activated a previously suspended sentence.
The story in 6 lines · by baba
- Avner Aluk received 44 months in prison for using fake invoices to steal 5.75 million shekels.
- Aluk's company, Sagiv Technologies, illegally deducted input tax using 139 fictitious invoices.
- The court convicted Aluk of multiple tax fraud charges, including under aggravating circumstances.
- Aluk's prior tax convictions and a suspended sentence were considered in the sentencing.
- The judge rejected Aluk's argument against activating his suspended sentence.
- Aluk was also fined 100,000 shekels and received a further 10-month suspended sentence.
The Magistrate's Court in Ramla has sentenced Avner Aluk, owner of Sagiv Technologies Fire Shielding Ltd., to 44 months in prison for using fictitious invoices to defraud the state. The court found that between 2012 and 2015, Aluk's company received 139 fake invoices from five different companies, which were then included in its tax reports, leading to an illegal deduction of approximately 5.75 million shekels in input tax.
Prosecutors alleged that Aluk attempted to conceal his involvement by appointing various individuals as company managers who were merely his proxies. The company, Sagiv Technologies, used these invoices, which did not represent any real transactions, to illegally deduct VAT.
Aluk denied the charges, but after a trial, he and his company were convicted of 35 counts of unlawfully deducting input tax under aggravating circumstances, four counts of preparing or authorizing false accounting records, and one count of fraudulent use of documents. The court also took into account Aluk's four prior tax offense convictions, including a suspended sentence of four months.
Judge Hisham Abu Shakhada rejected Aluk's argument that the suspended sentence should not be activated, stating that the test for activating a suspended sentence is substantive, not merely technical. The judge noted Aluk's criminal history and his failure to rectify the financial discrepancies, even partially.
In addition to the 44 months of actual prison time, Aluk received a 10-month suspended sentence and a fine of 100,000 shekels. The company was given a symbolic fine. The case was handled by lawyers Eitan La'amei and Dvir Amar from the Central District Legal Department of the Tax Authority, with investigations by the Tel Aviv Customs and VAT investigations unit. Aluk was represented by attorney Albert Haral.
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