Yeshiva director who evaded income tax - explains: "We do what the Rebbe says""

August 7, 2016   

Last week, the Tax Authority conducted audits in Tel Aviv, conducted by tax assessors in Tel Aviv 4 and 5, and conducted 250 audits of businesses and nonprofits. The audits revealed that about 171% of them did not properly record income. In an association whose offices contained documentation of receiving donations of about two million shekels, the auditors discovered that its owner does not keep any accounting books. The owner of the association said: "We will look into the matter." In the association that manages the kollel and yeshiva, it was found that a monthly payment of 10,000 shekels transferred to it for tuition fees was not recorded in the accounting books. Furthermore, income received from operating a mikveh on site is also not recorded. The association's director responded: "We do what the Rebbe tells us." In the offices of another association, the inspectors found that donations totaling approximately 135,000 shekels that were received on credit were not recorded. The association's director claimed: "That's what the accountant explained to me." A cross-check conducted by the Authority's auditors between the accounting books and the order journal of a truck owner revealed that he did not record income of approximately 50,000 shekels. The truck owner claimed: "I'm new to the field and I'm under pressure, so I didn't record receipts." In a furniture sales business, the inspectors found that income of 110,000 shekels paid in cash, checks, and credit cards was not recorded in the business's books. The business owner explained: "I only record when I deliver the goods." In an inspection conducted by the Authority's auditors at the office of an insurance agent, it was found that he did not record income of 65,000 shekels in the books. The insurance agent He claimed: "I register once every few months and I didn't register the month because it wasn't over yet." In a shoe sales business, it was found that several checks received were not registered. Regarding one of the checks, the store owner explained: "It's for advice to my lawyer about buying a tennis table, I didn't think it was income that I had to report." In a fish store in the market where the check purchase was not registered, the owner explained: "The employee only knows how to return the excess, not register it at the register." A check purchase of 124 shekels at a restaurant was registered as a transaction of 24 shekels. The owner responded: "I got confused." The operation was conducted as part of the Tax Authority's extensive activity against tax evaders and black money and as part of the Authority's director, Moshe Asher,'s directive to the regional offices to increase enforcement activity and improve deterrence, among other things by conducting field operations aimed at bringing about true tax reporting and collection and increasing equality in the burden among citizens.