President of the Manufacturers Association of Israel Shraga Brosh has been arrested by the Israel Tax Authority on suspected tax evasion. Brosh, one of Israel's most senior and respected industrialists, was arrested together with his brother Yariv and their accountant Michael Bar Levav. Their arrest was ordered by Judge Shlomit Ben-Yithak of the Tel Aviv Magistrates Court yesterday at the request of the Israel Tax Authority's income tax investigation assessment officer.
Shraga and Yariv Brosh and Bar Levav, who is suspected of helping the brothers evade tax payments, have been released under restrictive conditions including hundreds of thousands of shekels in guarantees and an order preventing them from leaving the country. The Brosh brothers are suspected of evading tax payments of more than NIS 1.5 million.
The Brosh brothers have served in senior positions that have shaped and influenced Israeli industry for more than 20 years. Yariv Brosh is chairman of the Metal Industries Association.
The Israel Tax Authority alleges that Brosh sent them falsified documents in 2017 and failed to pay income tax of NIS 1.5 million on a deal worth NIS 8.64 million in which Orshad Natural Gas, owned jointly by the brothers, sold a 14% stake.
A spokesman for Shraga Brosh said, "Mr. Brosh is surprised at the investigation which involves a very specific and marginal issue. This is the first time he has been investigated on any subject during decades of business and public activities. Mr. Brosh is of course cooperating and is convinced that within a brief period then entire matter will be ended."
Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2018
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