Tax Authority: Renters evade tax – general

Each of us encounters someone who brags about the many apartments he owns, which he rents “at a clean profit straight into his pocket and there is no tax on that money.” why is it happening? Because Tachles has no enforcement. The Tax Authority has published a file of 216 decisions and fines of about NIS 3 million, But this is barely 23 people. In short: the crime with the tax authority – pays off.

The ransom committee’s decision file published by the tax authority shows that some (very small) of these “braggers” were caught and paid fines. According to the Authority’s data, those who evade paying taxes on the monetary profit that comes from renting the apartments they own are about 25% of the income tax cases discussed.

The ransom committees in the tax authority are part of the ransom procedure which is an alternative to a criminal proceeding, which is done according to the tax laws as one of the ways to end investigation files on suspicion of tax offenses. They discuss income tax and real estate taxation and ransom committees that deal with VAT, customs and purchase tax issues. It should be noted that the amount of ransom imposed is in addition to the tax payment required in civil proceedings. The extent of the suspect’s involvement in the commission of the offense, previous convictions, past ransom payments, personal status, dependent family members, public interest in prosecution, removal of the default, whether it is an offense of a representative in the performance of his duties, whether there is a duty of trust or fidelity, need In deterrence in the same industry, the existence of offenses under other laws beyond offenses under tax law and more.

The file contains 216 decisions of the Tax Authority, of which 89 decisions in income tax and real estate tax cases, 124 decisions in customs and VAT cases and 3 joint decisions in customs and VAT and income tax.

Among the additional decisions: 5 cases for smuggling cigarettes by EPA employees; ransom decision in the case of Professor Mordechai Ravid, a senior physician and former director of Maayan Hayeshua Hospital, for evading transactions in the amount of NIS 250,000. The highest ransom, in the amount of NIS 900,000 A shekel was imposed on Alon Barzani and Barzani Transportation Ltd., for illegally deducting input tax, in the amount of NIS 609,000.