Tax authority acts against fuel smugglers

By DANIEL KENNEMER
November 22, 2005 05:59
1 minute read.

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Some 200 Israel Tax Authority investigators, accompanied by police officers, entered houses, businesses and gas stations throughout the country Monday morning to put a stop to the smuggling of fuel from the Palestinian Authority. In the initial raids of what the tax authority is calling "Operation Swinging Door," the investigators searched 20 clandestine way stations and discovered "tens" of buyers who would distribute the fuel, particularly diesel, to gas stations and other clients. "In the course of the searches, the central suspects implicated in the matter were located and transferred for investigation at the investigation offices in Haifa, and more arrests are expected throughout the day," the tax authority said in a statement. The PA purchases the diesel intended for use in PA territory from the Dor Alon company. The Israel Tax Authority refunds the PA for excise taxes and VAT levied on such purchases, in accordance with bilateral agreements, on the assumption that all of the purchased amount would be consumed within PA territory. Israeli gas dealers, working together with Palestinian merchants, found ways to bring some of the diesel sold to the PA back into Israel, where it was sold at low prices. Since the diesel was distributed and sold in Israel with fictitious tax receipts, the damage done to state coffers was doubled, the tax authority said. Doron Arbeli, director of the Israel Tax Authority investigations department, estimated the loss of state revenues resulting from the smuggling at NIS 200 million, on the basis of analyses showing a suspicious rise in diesel sales within the PA, sales receipts found in the raids, and other intelligence sources. The racketeers would also dilute the diesel to inflate their profits from the scam, investigations indicate. In the settling of accounts between the Israel Tax Authority and the PA, held monthly, the authority will ensure that the missing revenues from excise tax and VAT on the smuggled fuel would be taken into account, the statement said. Further actions would be carried out to completely disassemble the organizational infrastructure enabling the smuggling, Arbeli said.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS