Israeli Court Sentences Ismail Aggo to Prison for 1.8 Million Shekel VAT Fraud

The Ramla Magistrate's Court convicted Ismail Aggo of value-added tax (VAT) offenses involving approximately 1.8 million shekels. Aggo was sentenced to 22 months in prison and fined 90,000 shekels, according to the Israeli Tax Authority.

The amended indictment revealed that in 2017, Aggo and his company, Migdaley Aggo Ltd., received 57 fictitious invoices totaling around 7 million shekels. These invoices were used to unlawfully deduct input VAT of about 519,000 shekels despite no actual transactions taking place. Additionally, as a licensed business operator, Aggo received 67 more fake invoices worth approximately 9.2 million shekels, enabling further improper VAT deductions of around 834,000 shekels. These invoices were recorded in the company’s accounting books.

Aggo was also found guilty of involving another individual, who was intermittently in rehabilitation for substance abuse, to assist in the scheme. He instructed this person on how to interact with the accountant and other parties, drove him to cash checks, had him sign documents, and told him to remain silent if questioned. This assistance facilitated the deduction of fictitious invoices totaling about 435,000 shekels.

The Tax Authority emphasized that the total tax loss of roughly 1.8 million shekels has not been recovered, even partially. The case highlights ongoing efforts to combat VAT fraud in Israel.