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Accountants Suspected of Aiding Major Shareholder in Tax Evasion
The Israel Tax Authority is conducting a criminal investigation into two accountants and a tax advisor suspected of helping a controlling shareholder in a public company evade taxes on over 31 million shekels. The suspects allegedly assisted their client in concealing owner withdrawals and misreporting dividend distributions between 2021 and 2023.
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What happened
- 01The Israel Tax Authority is investigating two accountants and a tax advisor for allegedly helping a major shareholder evade taxes on over 31 million shekels.
- 02The suspects allegedly misreported 16.5 million shekels in dividends to secure a 25% tax rate instead of the required 30% for controlling shareholders.
- 03The alleged dividend misreporting resulted in an estimated loss of over 800,000 shekels in tax revenue for the state.
- 04The client also allegedly failed to report approximately 14.6 million shekels in owner withdrawals from a private company.
- 05The criminal investigation began after an audit by the Rehovot tax assessor's office uncovered evidence of extensive non-reporting.
- 06The investigation became public on Monday, November 2, 2026, following searches and seizures by the Tax Authority.
- 07The suspects were released under restrictive conditions, and a gag order was placed on their names.
The investigation, led by the Central District Tax Authority's investigations unit, began after an audit by the Rehovot tax assessor's office uncovered evidence of ongoing non-reporting. According to the investigation, the suspects helped the client report approximately 16.5 million shekels in dividends under a category for ordinary shareholders, which incurred a 25% tax rate instead of the legally mandated 30% for substantial shareholders. This misreporting is estimated to have cost the state over 800,000 shekels in lost tax revenue.
Additionally, the client allegedly failed to report or repay approximately 14.6 million shekels in owner withdrawals from a private company. The investigation became public on Monday, November 2, 2026, with searches and seizures. The suspects have been released under restrictive conditions, and their names remain under a gag order.
Summarized by baba from the reports of 3 newsrooms. Updated
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