Suspicion: CPA and tax advisor failed to report millions in income of a controlling shareholder in a public company

Suspicion: A certified public accountant and a tax advisor allegedly assisted a controlling shareholder in a public company to report dividend income of NIS 16.5 million at a reduced tax rate, and failed to report additional fund withdrawals of NIS 14.6 million. The tax loss is estimated at over NIS 800,000. The two were released under restrictive conditions.

The Israel Tax Authority is investigating a CPA and a tax advisor on suspicion of helping a material controlling shareholder in a public company evade taxes on millions of shekels in income. According to the suspicion, the two reported dividend income of NIS 16.5 million at a reduced tax rate of 25% instead of 30%, thereby causing a loss of over NIS 800,000 to the state treasury. In addition, they failed to report fund withdrawals of NIS 14.6 million from a private company controlled by the client. The investigation became overt yesterday, and the suspects were released under restrictive conditions. Their names are prohibited from publication. The article is based on information from the Central Investigations Officer of the Tax Authority.