Lawyer Suspected of Faking Residence to Get Reduced Property Tax on Ramat Hasharon Villa

Israeli tax authorities suspect attorney Rafael Yitzhak bought a villa in Ramat Hasharon for investment, rented it out, and falsely claimed he lived there to obtain a property tax break reserved for the disabled, blind, or terror victims. He was detained for questioning on Monday and released Tuesday morning by the Rishon LeZion Magistrate’s Court under restrictions, including a 250,000 shekel bail deposit.

According to the investigation, Yitzhak purchased the villa in 2024 for about 6 million shekels. The Tax Authority says the deal should have triggered about 480,000 shekels in purchase tax, or 8% of the price, because it was an additional property. About six months later, he asked the Netanya Real Estate Tax Office to amend the assessment and pay only 30,000 shekels, or 0.5%, citing the law’s reduced rate for eligible buyers who acquire a home for their own residence.

The office approved the request, then carried out an inspection to verify that he had actually moved in. Inspectors found the property was being rented by another family. After that, the office asked Yitzhak for explanations and documents supporting his claim.

Yitzhak submitted municipal tax, electricity, water, and identity card documents to show he lived there. But investigators found the address change was made only after the office contacted him, and the rest of his family still lives at his former home. Following the inspection, the Central District tax investigations unit opened a case for alleged false reporting, searched locations, seized evidence, questioned Yitzhak, and took statements from others involved.