The tax authority, through the Tel Aviv Customs and VAT Investigation Unit and the tax authority Center, is conducting an undercover investigation against a number of suspects from the southern region who run a network of companies owned by several contacts who are registered as shareholders of those companies. The scope of the offenses being investigated is approximately 154 million NIS.
The arrest request indicates that the suspects, centered on suspect Ran Shoshan and a company he owns, “E. Hayrok Earthworks”, acted in cooperation to distribute and offset suspected fictitious tax invoices in the names of those companies, with the aim of enabling them to evade paying taxes.
The investigation also revealed that the companies submitted false reports to the tax authorities and even committed money laundering offenses, while presenting a false representation to the tax authorities regarding the identity of the actual owners of the companies and the fictitious activity carried out in them.
One of the suspects, Chen (Simcha) Fergi, was arrested on Tuesday (4.11) and the next day (5.11), appeared before the Rishon LeZion Magistrate’s Court on suspicion of controlling and issuing fictitious invoices to the various companies within the network of companies. The court decided to release the suspect to house arrest. The investigation is ongoing.