Albar to Pay NIS 18 Million Over Indirect Import Fraud Case

Israeli leasing and rental company Albar has agreed to pay a NIS 18 million fine for its role in the indirect vehicle import scandal first exposed by Calcalist 11 years ago. According to the Tax and Economic Prosecution, the Tel Aviv District Court convicted the company, based on its guilty plea, of fraud and tax offenses. The investigation was conducted by the Haifa Customs and VAT Investigations Unit of the Israel Tax Authority and by the Coastal District investigative unit of the Israel Police.

Under the plea bargain, both sides asked the court to impose the NIS 18 million penalty, far less than the amount the Tax Authority originally sought. The case remains one of the most complex in Israel’s auto industry. Albar began importing cars through indirect import in 2012, one of three import channels in Israel, alongside direct import from the manufacturer and small-scale luxury imports.

Albar initially brought in Honda and Toyota vehicles, but had to present approvals from licensed U.S. agents. Those approvals, the proceedings showed, were forged. Prosecutors said the company, together with other involved parties, submitted fake documents and agreements to create a false appearance that it met legal requirements, and on that basis received permits and licenses from the Transportation Ministry.

The company imported 1,828 vehicles worth more than NIS 176 million, according to the prosecution, and also filed forged invoices with lower values to reduce purchase tax, as well as false certificates of origin to make it appear the cars had been legally bought from the manufacturer. The prosecution also said the false import declarations covered about 1,600 vehicles, and that fabricated accounting records were used to hide the true costs and sources of funding. Proceedings against the other defendants are still ongoing. Albar said the events took place 12 years ago under management that left in 2015, and that it chose to put the matter behind it and continue serving its customers.