Israeli Contractor Arrested for Allegedly Evading NIS 6 Million in Taxes
Translated & summarized from Ice by baba
Israeli building contractor Suib Zagarna was arrested on suspicion of evading approximately 6 million shekels in taxes between 2021 and 2025. The arrest is part of a wider crackdown by tax authorities on the construction sector, which has recently seen other investigations into alleged fraud and money laundering. The Ministry of Construction and Housing has also suspended licenses for five contractors due to employment discrepancies. These actions indicate a significant increase in regulatory enforcement within the industry.
The story in 5 lines · by baba
- Contractor Suib Zagarna arrested for allegedly hiding 6 million shekels in income.
- Tax authorities seized documents and digital media as part of the investigation.
- The case is part of a broader crackdown on fraud and money laundering in construction.
- Businessman Dudi Appel is also under investigation for alleged asset hiding.
- Five contractor licenses suspended by the Ministry of Construction and Housing.
Israeli tax authorities have revealed a new real estate sector tax evasion case involving Suib Zagarna, a building contractor operating primarily in southern Israel and the Arava region. Zagarna was arrested on suspicion of concealing approximately 6 million shekels in income. He was brought before the Rishon LeZion Magistrate's Court, which ordered his release under restrictive conditions to facilitate the ongoing investigation.
The investigation, led by the Israel Tax Authority's Diamond Unit, was initiated following intelligence gathering. Investigators suspect Zagarna systematically omitted a significant portion of his income from construction work performed for various clients in the southern region between 2021 and 2025. During the investigation, authorities seized accounting documents, digital media, and bookkeeping materials from Zagarna's representative after executing court orders.
An initial review of the seized materials and Zagarna's bank accounts revealed a substantial discrepancy between the actual amounts received from clients and the income reported to the tax authorities, totaling an estimated 6 million shekels. This case is part of a broader crackdown on the construction industry, with law enforcement intensifying efforts against fraud, money laundering, and fictitious offsetting in the sector.
Recent weeks have seen other high-profile investigations in the construction and real estate sectors. Businessman and contractor Dudi Appel is a central suspect in a large-scale investigation by the Lahav 433 economic crime unit concerning alleged attempts to hide real estate assets and launder tens of millions of shekels. Separately, Shmuel Gazit, a shareholder and director at Niti Development and Construction Ltd., was arrested on suspicion of using fictitious VAT invoices totaling approximately 26 million shekels and was also released under restrictive conditions.
Furthermore, the Ministry of Construction and Housing has suspended the licenses of five contractors due to suspicions that the declared engineering personnel responsible for obtaining their licenses are not actually employed by the companies. These combined enforcement actions signal an intensified period of scrutiny and raids for businesses operating in the construction industry.
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