Supreme Court: Tax offenders - "If they take off their clothes, they will be revealed as thieves like any other thief""

Haredim 10
September 15, 2014   
The Supreme Court rejected the appeal of a tax offender sentenced to 10 years in prison • Judge Elyakim Rubinstein: "Those who steal from the public purse by not paying taxes, even if they are disguised, are normative people""
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Supreme Court rejected over the weekend the appeal of Nissim Glam and two companies he owns against their conviction in a series of Tax offensesMoney laundering and other offenses, as well as the severity of their punishment.
This is a fundamental ruling, both in relation to the severity of the punishment and with regard to the legal issues that were decided therein, in which the Supreme Court emphasized the stricter trend in punishment inEconomic offenses Including tax offenses, and the effectiveness of this trend in terms of deterring the masses. Gelam, a resident of Sde Uzia, used companies he owned and fake invoices from 7 other licensed dealers to disguise his activities in the metals trade and the source of the funds that came to him. The District Court convicted him of 13 charges that include various economic offenses, including evading VAT in the amount of approximately 52 million shekels, failing to deduct tax at source in the amount of approximately 6.5 million shekels, and omitting income in the amount of approximately 306 million shekels. It was determined that Gelam violated, by his actions and omissions, the principle of equality of the burden of the tax burden, when he submitted false reports to the tax authorities; kept false books; omitted income from his reports; issued invoices in exaggerated amounts that do not reflect real transactions; deducted inputs without a proper document; and laundered money while assimilating them into his property. The District Court He noted that this was a serious case of white-collar crime "on a financial scale that is almost unprecedented," and sentenced Rawam to 10 years in prison. Actual imprisonment And a fine of 5 million shekels under the Money Laundering Prohibition Law, after determining that in order to deal with this type of crime, a high and strict level of punishment was set.

Glam and the companies appealed to the Supreme Court against their conviction and the severity of their sentence, but as mentioned, their appeal was rejected.

Regarding the severity of the punishment, Judge Uri Shoham ruled that "in offenses involving fraud against tax authorities, as well as in offenses of money laundering, a fairly wide range of punishments can be indicated, but the trend emerging in this court's rulings is towards aggravating and harsher punishments for those criminals who reach into the public purse and severely violate the principle of equality in bearing the tax burden, and indirectly also harm the social fabric in Israel.".

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Judge Elyakim Rubinstein noted that "thieves from the public purse by not paying taxes, even if they are disguised as normative people, when they take off their clothes they will be revealed as thieves like any thief from the underworld and worse, because among people they are considered law-abiding like any other person from the community, and some may mistake them.".

The ruling indicates that "saved tax" constitutes "prohibited property" for the purposes of Section 3(a) of the Money Laundering Prohibition Law, and therefore establishes the grounds for forfeiture set forth in the law.

The state argued that property worth millions of shekels should be confiscated, due to the fact that it was purchased with saved tax money, and the court ruled that all the elements of the offense of Section 3(a) were indeed proven, including the property being prohibited property, and left the confiscation in place.

The Supreme Court even rejected Glam's argument that the ruling should have referred to the final tax amount he had to pay according to his attorney's calculations, and not to the extent of the income he concealed.

Judge Shoham ruled that there is no need to calculate what Glam's profit would have been if he had acted as an "honest person," but rather, "it is sufficient that this is a case of concealment of income on extremely high levels, and there is no need for further calculations beyond that.".

The state was represented by the Fiscal Department of the State Attorney's Office.


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