In order to disguise the taking of the money received according to the aforementioned invoices into the pocket of defendant 1, the defendant, through Shlomo Sweet, deducted the checks from a third party, from whom he received a sum of money in cash, in exchange for the checks.
The indictment alleges that the defendant issued 1 invoice of the Merig company in the amount of no less than NIS 2,348,873. The indictment further claimed that Defendant 1 did not maintain ledgers in respect of his activity through marig, as required by the provision of section 66 of the VAT Law.
In the tax year 1999, defendant 1 filed false periodic reports, according to which he deducted from the tax she owed from Rig, input tax, not according to tax invoices issued lawfully. According to the periodic reports, defendant 1 declared that the tax he owed was in respect of transactions in the amount of NIS 2,207,352 minus input tax for transactions in the amount of NIS 2,226,480, despite the fact that he did not have lawful invoices according to which he paid input tax.
The prosecution's arguments regarding indictment 15
- The prosecution claims that it proved the fact that these were fictitious invoices, by virtue of the fact that Merig was a shell company, which did not maintain books and functioned as a company for the supply of tax invoices only. In most of the charges, it is not possible to point to a connection between Merig and the goods sold, according to the invoices issued by it, since it is not possible to point to an invoice according to which Merig acquired rights in these goods.
The prosecution further argues that according to case law, an invoice must tell a true story about the nature of the transaction and the identity of the parties to the transaction, and that this is not a technical requirement, but rather a substantive one. Therefore, a person who issues a tax invoice, without there being an obligation or a transaction in respect of that invoice, is committing an offense under section 117(b)3 of the VAT Law. A person who knowingly deducted input tax on the basis of a fictitious invoice, committed an offense under Section 117(b) 5 of the VAT Law.