The Delek Motors motor vehicle agency, importer of Mazda automobiles to Israel, has received a NIS 109.3 million demand for payment from the Customs authorities, "in respect of deficits due to a shortfall, so the Customs allege, in import taxes paid". The Customs demand relates to the import of motor vehicles in the period August 1993 to July 1997.
In addition to that amount, the Customs is demanding NIS 55.3 million from Delek Motors, in linkage, interest, fines and arrears payments. Delek Motors rejects the demand for payment, which it disputes, and has referred the matter to legal counsel.
In July 1997, two Delek Motors managers, Mickey Ron and Gil Agmon, were arrested and released on bail by the Jerusalem Magistrates Court. The Customs investigation department alleged in court, that Delek Motors had evaded NIS 100 million import taxes.
Customers investigators who raided the offices of Delek Motors, alleged that Delek Motors artificially reduced the prices of Mazda automobiles it imported from Japan (which were subject to 95% tax), while at the same time inflating the prices of air conditioners and imported safety accessories, on which a reduced tax was customarily paid.