The Indictment
- As a result of the details of the indictment detailed above (Charges 1-14), the defendant received a sum of NIS 417,538 as a result of the offenses of taking bribes and theft, which the defendant refrained from reporting to the Income Tax.
- During the period detailed in this indictment, the defendant and the defendant (hereinafter: "the defendants") rented out many properties and did not declare the rental income of the properties to the Tax Authority.
- On March 18, 2014, the defendants purchased a house at 2 Hemed Street in Rishon LeZion, known as Block 5037, Plot 5, Sub-Plot 6 (hereinafter: "The Hotel" or "The Villa").
The defendants separated four units for short-term rental in the motel, and during the period between 2014 and 2018, the defendants rented out the units in the motel for short periods, inter alia, to tourists from abroad, and managed the motel as a business that is required to report to the Income Tax.
In addition to the motel units rented by the defendants for short periods, the defendants rented an additional unit for long periods for NIS 4,500 per month.
- During the period between 2013 and 2018, the defendants rented an additional apartment at 21/10 HaZionot Boulevard in Pardes Hanna in a property known as Block 10122, Plot 328, Sub-Plot 10, and also received rental money from renting an apartment of the defendant's mother in Russia.
- The total income of the defendants during the period that they omitted from the reports that they were required to report to the tax assessor, is detailed in Appendix A to the indictment, in the cumulative sum of NIS 2,202,459:
- In addition, the defendant omitted additional income, the value of the bribe and theft in the sum of NIS 417,538 as detailed above, and as detailed in Appendix A to the indictment:
- The defendants did not keep books as required by the Income Tax Ordinance, did not report to the tax assessor the receipt of the aforementioned funds, and did not pay the taxes arising from the aforementioned activity.
- The defendants in their aforementioned acts deliberately used cunning, fraud or deception with the intention of evading tax in relation to the tax years 2013-2018, omitted from a report under the Ordinance any income that must be included in the report with the intention of evading tax in relation to the years 2013-2018; The defendants, without sufficient reason, did not maintain books of accounts in accordance with the instructions of the Director given under section 130(a) of the Income Tax Ordinance in relation to the tax years 2013-2018; the defendants did not submit the first annual report they were required to submit on time after the opening of the business or the beginning of the occupation.
- The statutory provisions according to which the defendants were charged are fraud, cunning or deception (multiple offenses) – an offense under section 220(5) of the Income Tax Ordinance [New Version] (hereinafter: "the Income Tax Ordinance" or the "Ordinance"); omission of income from a report – an offense under section 220(1) of the Ordinance; failure to maintain books of accounts – an offense under section 216(5) of the Ordinance.
The Response to the Indictment 15
- The defendants deny that they evaded paying taxes in the years 2013-2018 for income from assets they own. Also with regard to the report to the Tax Authority regarding the bribe money he allegedly received, the defendant denied the accusations attributed to him in this indictment.
Charge 15 - Evidence