Real estate developer Inbal Or has been arrested on suspicion of tax evasion totaling tens of the millions of shekels. She allegedly concealed deals and issued false invoices in cooperation with Dror Giladi, the CFO of her group of 16 companies.
The Israel Tax Authority stated, "Inbal Or carried out 27 projects in central Israel over the past decade, including the construction of 800 housing units. The volume of transactions reported to the VAT authorities through consolidation of deals with VAT for only six of the 16 companies she owns totals NIS 70 million over the past five years."
The Tax Authority asserts that Or was asked last year to give documents pertaining to her business activity to the auditing department in the Tel Aviv purchase tax station for the purpose of a routine audit in order to verify her reports to the VAT authorities. "Or blatantly ignored her legal duty to disclose the information, and either did not appear for her scheduled questioning sessions or canceled them at the last minute. This behavior arouses a strong suspicion that she wants to conceal findings and obstruct the investigation in her case," the Tax Authority stated.
Jerusalem customs duties and VAT investigators, in cooperation with account auditors from the Tel Aviv purchase tax station, yesterday raided Or's home and offices. According to the Tax Authority, "Many materials were seized in the course of the raid, including contracts, cooperation agreements, accounting documents, and computerized documents. The investigation will continue."
15 days of house arrest
Brought to court for an extension of her remand, Or broke out in tears in the hearing. She stated, "Someone wants to destroy me," and added, "I don't understand what's happening here. It can't be real. Maybe I'm dreaming."
Giladi was also arrested. Among other things, he was responsible for reports to the Tax Authority. His arrest came after a six-month covert investigation by the Jerusalem customs duties and VAT investigators, in cooperation with the Tel Aviv VAT and purchase tax office, was revealed.
Advocates Ronen Rosenbloom and Udi Barzily, representing Or and her real estate group, said, "It would have been right to wait until the investigation was completed and the facts were clarified. No allegations in the investigation involving fraud or deception have been made against Inbal Or or the group. The investigation is focusing solely on a very specific aspect of the VAT Law. We are absolutely certain that just as the investigation began as the result of a civil audit procedure, it will end in an exclusively civil procedure, not a criminal one.
"It is important to emphasize that there is no connection between the group's regular real estate business and the investigation."
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2016
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