Since the tax charge is on the date of the release of the goods, the defendants requested the release of some of the goods on deferred dates. They paid some of the reduced import taxes and received about a quarter of the amount of goods. On September 23, 1999, the defendants submitted a warrant for the release of goods in the declared value of $78,524. In doing so, they misled the customs officials, defrauded the State Treasury and evaded the payment of import taxes in the total amount of NIS 82,000, and tried to evade payment of the balance of import taxes in the amount of NIS 341,827.
The indictment further alleged that the defendants used the notes as input invoices and deducted the appellant's payment of taxes according to them as input tax, despite the fact that these were false notes. In doing so, the defendants deducted inputs, unlawfully, without having a document regarding the deduction. In addition, the defendants concealed the transactions and income from the sale of the goods and did not report them as required, with the intention of evading paying taxes.
Since the aforementioned acts entitled ICT to refunds from the VAT authorities, and in order not to draw the attention of the law authorities to the criminal activity of the defendants through ICT, the defendants issued two ICT invoices, one in the amount of NIS 2,953,604.16 and the other in the amount of NIS 338,130, both dated November 15, 1999. These invoices were illegally offset as inputs by Savilla Trading Ltd. The indictment alleges that the Savilla company is a corporation whose registered shareholders are Haim Zaruk (99%) and Shlomo Shoval (1%), but in practice the corporation was controlled by defendant 1, who used it as a shell company. The aforementioned tax invoices are fictitious, as they do not relate to any real transactions, and what is stated therein is false. In doing so, the defendants acted fraudulently, deceitfully, and deceitfully, with the aim of evading or evading payment of taxes under aggravated circumstances.