The total amount of Merig's invoices in the framework of charges 7-14 is NIS 2,348,873.
Therefore, I convict defendant 1 of 15 offenses of issuing a tax invoice or a document posing as a tax invoice, without making or undertaking to make a transaction in respect of which the said invoice or document was issued, under aggravated circumstances, in accordance with section 117(b)3 together with section (b2) of the VAT Law.
The aggravating circumstances are described in sections 117(b2), 2 and 3 of the VAT Law.
In addition, it was proven to me that Merig did not maintain ledgers, as required by the provision of section 66 of the VAT Law, and that the responsibility for this lies with defendant 1, as the person who managed, operated the company and was responsible for its accounts. Therefore, defendant 1 should be convicted of the offense of failing to maintain ledgers, under section 117(a)7 of the VAT Law.
Merig deducted input tax on the basis of the fictitious invoices it produced, without presenting invoices attesting to the purchase of the goods, with the exception of a small number of invoices on behalf of Schloss, which are found in the invoice book of this company (P/206).
Therefore, I convict the defendant of the offense of deduction of input tax without having a document, as stated in section 38, in aggravated circumstances, under section 117(b)5 together with section (b2) of the VAT Law.
The aggravating circumstances are described in sections 117(b2), 2 and 3 of the VAT Law.
Since the intention of defendant 1 to evade payment of the amount of the tax appeal that is obligated (with regard to the intention to evade payment of a tax appeal, see, for example, the Criminal Appeals Authority 9008/01 State of Israel v. A.M. Turgeman in the Tax Appeal (in liquidation), IsrSC 58(4), 439), he must be convicted of the offense of using any fraud or trick, or authorizing another to use them or to perform any other act, with the aim of evading or evading tax, under aggravated circumstances, under section 117(b)8 together with section (b2) of the VAT Law.