There is nothing in these claims, since – as clarified above – there is a reasonable suspicion, backed by administrative evidence, that the tax offense is not the only offense from which the funds originate, and it is possible that these are funds that originate from offenses in the field of prostitution.
We have already ordered the Supreme Court in this regard as well (here from the Criminal Appeals Authority 7493/19 Natan Furman v. State of Israel (November 22, 2017), para. 19. Font changes in the original):
"... With regard to the Applicant's argument regarding the "voluntary disclosure" proceeding, and its alleged effect on his case, my colleague, Justice N. Hendel rejected this argument by stating as follows:
"I am unable to accept the applicant's claim that the money was 'strictly kosher' in the framework of the voluntary disclosure proceeding. As it emerges from the decision of the courts below, the voluntary disclosure agreement related to tax offenses. Hence, the implications of this proceeding with regard to the suspicions attributed to the applicant, and mainly the offense of bribery , are limited. This is said even without me addressing the validity and status of the agreement in the framework of the disclosure proceeding, for example in view of the Applicant's claim before the tax authorities that the source of the money is in "commissions". It should also be noted in this context that the trial court noted that the investigation against the applicant was opened regardless of the discovery process, at the request of the German authorities" (see: paragraph 4 of the decision).
To these rulings of my colleague, Justice N. Hendel – to which I am a party – I will add that the aforementioned "Voluntary Disclosure Procedure" states, inter alia, that: "The procedure shall not apply to income derived from illegal activity" (see: section 17 of the procedure; my emphasis – H.M.), and for this reason too, the applicant's claim should be rejected."
- In relation to this issue, the Honorable Judge Mazen Daoud (inCivil Case (Haifa District) 41090-11-22 Natan Furman v. Bank Hapoalim in Tax Appeal (July 31, 2024) para. 31) further cited the position of the Money Laundering Authority on this issue, as follows:
"... I am of the opinion that the position of the Money Laundering Authority with respect to the voluntary disclosure procedure reflects a position worthy of adoption by the court when it held: