Billions brothers Itzik and Amir Dayan, who belong to one of the richest and most discreet families in Israel, are the two businessmen who were arrested last month on suspicion of committing tax offenses and evading hundreds of millions of shekels.
The suspicion against the two focuses on hundreds of millions of shekels that allegedly reached the brothers from a foreign trust established in 2001 by an unknown foreign resident from France named Jacques Malka, who is the father-in-law of Itzik Dayan. In 2015, the trust, in which the two brothers are registered as beneficiaries, signed an arrangement with the tax authority, but for some time now, the authority has suspected that the trust is fictitious, which led to an undercover investigation. One of the questions raised by the Tax Authority is how only NIS 2 million in tax was paid, even though they entered a trust from abroad for 182 million euros. On November 9, the investigation became public, and the two were arrested.
“This loyalty is a fiction”
As part of the documents now allowed for publication, a transcript of a hearing held in court regarding the extension of their detention was also revealed. During the hearing, the representatives of the Tax Authority, Avi Ohayon and Yoni David, presented the situation in the investigation. Ohayon: “A picture emerges according to which the suspects Amir and Itzik Dayan – two brothers from one of the richest families in Israel – cheated the tax authority by presenting a false presentation, according to which their many assets worth hundreds of millions of shekels are held in trust by a 91-year-old French resident. In any case, and all this to evade tax payments in Israel in the amount of tens of millions of shekels. “After a great effort by the International Taxation Unit of the Tax Authority and in cooperation with the Holon Assessing Officer and the Assessing Officer of Tel Aviv and the Anti-Money Laundering Authority, while undercover investigation in Israel and abroad, this morning the investigation became public.”
When asked by Adv. Haim Gabay, one of the two in the absence of the judges, that since 2015 the trust has an arrangement with the tax authority and it submits an annual report to the tax authority – and whether the report has not been reviewed, David replied that “in 2015, when the trust report was submitted, actually” Gyro “a sum of about a billion shekels, about 182 million euros, and they laundered it. In fact, they can withdraw money without tax in the amount of 182 million euros, for which they paid two million shekels in tax. The root of the problem is that everything – loyalty, is fiction. She converted to forgery. “Since then, they have begun to examine loyalty through international conventions, and we have begun to accumulate material that actually shows us that all this loyalty is fiction.”
Advocate Haim Gabay asked David during the hearing whether he was aware that the beneficiaries – the Dayan brothers – have no word in this trust, as part of the defense’s claim that the Dayan brothers can not change anything in the trust, because they are “passive”. David replied that “it is not It matters because everything is fiction, and I have evidence that they are the real owners of all the companies. “
During the hearing, Attorney Nati Simchoni raised one of Amir Dayan’s defense arguments, according to which the criminal investigation began due to a dispute between him and his estranged wife. Simchoni asked the representative of the Tax Authority: “You did not check the trust in 2015 due to lack of manpower. Reports and he also does not check loyalty, and you have information from international taxation – would it be an exaggeration to say that the information is due to a family quarrel and you fall into a mistake and take sides? “.
To this Yoni David replied: “It may be that the catalyst was sent for examination because of the family dispute, it may be, but in the end we have external evidence, not from the divorcee or the divorcee, I do not know what the situation is now, but we have external evidence.”
The “quiet” arrest and the deal with the tax authority
The brothers’ names have so far been banned from publication, after their lawyers, Haim Gabay and Nati Simchoni, reached an agreement with the tax authority, according to which they will agree to stay in detention for two days, without appealing the detention, and in return the authority agrees to issue a restraining order. Days – an unusual period of time in relation to similar arrests.
During the first days of detention, the brothers’ homes and offices were searched, their personal computers taken, and investigations were carried out that the tax authority thought would be difficult to carry out if the brothers were released from detention or if there were open detention hearings. With the transfer of the investigation to the open stage, suspicion arose that the brothers had disrupted investigative proceedings.
The names of Amir and Itzik Dayan have now been released following petitions to remove the restraining order filed by the Globes newspaper, as well as other media outlets – Calcalist and The Marker for the removal of the restraining order. As part of the discussions on the restraining order, the two’s lawyers said that “they argued and we continue to argue that the beneficiaries have no idea about taxation. Not many know the taxation of trusts. Individuals. So do the representatives. So expect the beneficiaries – who are in fact passive in the trust “When the activists are the creator and the trustee) – that they will know the law in everything related to trusts? Therefore, they hired the services of the best experts and relied on their advice.” According to Adv. Gabay, in the case of the Dayan brothers, as soon as it became clear that there was an obligation to regulate the taxation, the trust applied to the tax authority itself, asked to regulate the tax, invented all the documents and reached a tax result. In the arrest request, it was alleged that the assessee was wrong. The mistake can be corrected. The authority has been submitting reports since 2015. It submitted reports on time, and paid the required tax. “
Attorneys Nati Simchoni and Haim Gabay stated: “Amir and Itzik Dayan are respected businessmen who have never been blamed. The issue examined by the Tax Authority – which was born in a divorce dispute – is complex and the Dayan brothers will be presented, in its context, by the best experts. Due to this, it was appropriate that the issue be examined at the civil level only. “Amir and Itzik work in transparency and full cooperation with the tax authority and are sure that at the end of the investigation it will become clear that there was no fault in their conduct.”
*** Presumption of innocence. Itzik and Amir Dayan are only suspects. This is a preliminary stage in the criminal proceedings, they have not been convicted of an offense and are presumed innocent