(photo credit: Thinkstock/Imagebank)
Two fuel sellers and seven associates were arrested on Monday on suspicion of
being involved in the largest tax scam in the state’s history.
police’s National Economic Crimes Unit said the suspects distributed fake tax
receipts for NIS 3.5 billion worth of fake transactions.
allegedly used the fake receipts to evade paying NIS 600 million worth of
value-added tax on fuel.
Detectives set up a joint investigation team
with Finance Ministry inspectors in Tel Aviv and opened an undercover
investigation several months ago against the suspects, focusing the two fuel
sellers, one of whom is based in the North and the second on the
The detectives said they discovered that the sellers built a
network of fake companies used to distribute the fictitious tax
Real companies under the suspects’ ownerships then received the
receipts, allowing their owners to claim they had paid that amount in
“This is how they ‘financed’ the high VAT fuel taxes they were
supposed to pay,” police said.
Officers detained an additional 15
suspects for questioning.
During raids on the suspects’ homes, police
seized computers, luxury vehicles, and hundreds of thousands of shekels worth of