Israeli Tax Authority Employees Arrested Over $80 Million Fraudulent Tax Refund Scheme

Israeli police arrested several current and former employees of the Tax Authority in Petah Tikva on Monday, suspecting them of accepting bribes in exchange for approving fraudulent tax refunds totaling approximately 80 million shekels. The arrests followed a covert investigation by the National Fraud Investigation Unit (Yahaha) of Lahav 433, in collaboration with the Tax Authority's Central Investigations Division.

Among those detained are Boris, a former deputy tax assessor in Petah Tikva; Sasson, a former team coordinator at the same office; Shadi, a current team coordinator; and Kadushin, a former junior employee in the report processing department. Police raided their homes and offices as the investigation became public, and some suspects are expected to appear in Ramla Magistrate’s Court for detention extension hearings.

A police source revealed that the bribery scheme operated over several years, specifically between 2018 and 2019, allowing individuals to receive tax refunds they were not entitled to. The source indicated that the corrupt system involved separate arrangements with each employee and that further arrests or investigations are anticipated. Some suspects have since retired during the lengthy inquiry.