About a decade after selling his shares in Oversize, Gadi Zeevi will pay full tax on the profits

The Tel Aviv District Court rejected an appeal by Zeevi Transport, owned by businessman Gadi Zeevi, ruling that he must pay full capital gains tax on the sale of Oversize shares totaling approximately NIS 65 million, along with a deficit fine. The judge determined that the attempt to offset gains against bad debts was done retroactively and unlawfully.

The Tel Aviv District Court rejected an appeal by Zeevi Transport, owned by businessman Gadi Zeevi, and ruled that he must pay full capital gains tax on the sale of Oversize Commerce shares, totaling approximately NIS 65 million, along with a deficit fine. Judge Yardena Seroussi determined that the company attempted to offset capital gains against alleged capital losses from bad debts, but these were recorded retroactively and unlawfully, with the aim of reducing the tax liability. Zeevi Transport sold its shares in Oversize in several tranches between 2013 and 2018, and in the years 2016–2018 did not pay capital gains tax, instead offsetting the profits against bad debts recorded retroactively. The judge noted that the controlling shareholder has the ability to manipulate records among group companies, and that the recognition of debts occurred precisely at the time when significant capital gains were generated.