A prominent rosh yeshiva from Modi’in Illit has been arrested on suspicion of tax evasion amounting to NIS 5.5 million, income he received from an apartments he owns. Authorities told the Rishon L’tzion Magistrate Court that the rabbi failed to report income received from five apartments during the past 15 years. The apartments are located in Beit Shemesh and Modi’in Illit. Tax Authority officials decided to release the rav on bail as the investigation against him continues.
A Tel Aviv bureau tax inspection revealed a Herzliya couple was also arrested on suspicion of evading tax payments in the amount of NIS 2.5 million. They rented out five expensive properties they own since 2000 while not reporting to tax authorities. The first report they filed to tax authorities was in 2014, and this was only in response to a request from tax officials. The couple has admitted they failed to report their income, with officials adding they are expressing remorse for their actions, which will now be costly.
Investigators learned that tenants gave checks up front and at the end of each quarter the checks were returned and the landlord received cash. The couple was arraigned in the Rishon L’tzion Magistrate Court too and released on bail.
Israel Tax Authority officials in the past year sent over 100,000 letters to citizens, instructing them to submit a report documenting their income and assets.
(YWN – Israel Desk, Jerusalem)