Books auditing inspectors from the Akko Assessing Officer’s office, in collaboration with the National Books Auditing Unit of the Israel Tax Authority, conducted a targeted enforcement operation in northern Israel. This operation is part of an ongoing enforcement and deterrence policy against tax evasion. During the operation, audits were performed at 40 businesses in Akko, Nahariya, Kafr Yasif, Yirka, Deir al-Asad, and Majd al-Krum. Of the businesses audited, 50% failed to record income, and 3 additional violations of the Law for the Reduction of Use of Cash were documented.
In a tire repair shop in Deir al-Asad, suspicion arose prior to the audit that the business was being managed by someone other than the registered owner. During the inspection, officials confirmed that while this individual was present and running the business, the accounting books belonged to a company owned by an 80-year-old woman. Furthermore, a ledger was discovered detailing revenues that did not match the entries in the official accounting books. It was also found that dozens of payments totaling approximately 30,000 NIS had not been recorded. The manager responded: “Sometimes there are misses and a lack of strictness regarding records.”
In the village of Yirka, inspectors visited a lawyer’s office. Upon reviewing the business account, they identified three bank transfers totaling approximately 17,000 NIS that were not recorded in the books. The lawyer claimed: “I have many clients on retainer agreements. They transfer funds to my account, and once a month I sit down and issue an invoice and a receipt for each client.”
During the operation in Akko, inspectors arrived at a shop and observed a sewing workshop with a stock of fabrics. An employee was present alongside the owner. Upon identifying themselves and conducting the audit, inspectors found a curtain-sewing business operating without any bookkeeping. The owner claimed: “I used to have a workshop, but I closed the business. Since then, I’m just passing the time here.”
In another case, a tobacco production business owner was found to be operating without maintaining any books. The owner stated: “I previously had a tax file and closed it in 2020. I resumed operations a month ago but have not yet notified the authorities, and I don’t keep books because I want to test the waters first.”
The National Books Auditing Unit will continue to operate at all times and locations to enforce the law, both through routine activities and special operations. This is part of the Israel Tax Authority’s extensive efforts to combat the “black economy” and tax evaders, aiming to increase enforcement, maintain deterrence, and ensure true reporting and fair tax collection to promote equality in the tax burden among citizens.