Dror Giladi, CFO of the Inbal Or Group of real estate development companies has been arrested by the Israel Tax Authority for suspicions that he allegedly assisted Or in concealing deals worth tens of millions of shekels and issuing fictitious invoices.
Gilad, 49, was arrested and then released on bail. He serves as CFO for a group that incorporates 16 separate companies owned by Inbal Or and as part of his job he is responsible for reporting to the Israel Tax Authority. He was arrested following a 6-month covert investigation by tax officials from the Tax Authority's Jerusalem VAT and Excise office together with the Tel Aviv VAT and Purchase Tax office, which has now become overt.
Gilad was released with the consent of Judge David Shaul Gabai-Richter of the Jerusalem Magistrates Court after depositing NIS 100,000 in cash and commitments, and guarantees worth NIS 700,000. He also deposited his passport.
Elements of the investigation are still subject to a gag order but more details about the allegations are expected to be published in the coming days about other senior figures at the company, some of whom are currently being investigated.
Or City Real Estate said, "The company was recently asked by the Tax Authority to send clarifications of civil issues. It is important to stress that the company operates according to the law and professional opinions. The company always cooperates with the legal authorities and beyond that we cannot comment."
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2016
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