In the video: Banknotes worth tens of thousands of shekels were thrown from the windows of a house during an operation by the police of the northern district and the tax authorities against a suspect of tax evasion from the city of Shafaram, August 2, 2023/police and tax authority spokeswomen
The Tel Aviv Magistrate's Court today (Thursday) sentenced 14 months of actual imprisonment and a monetary fine of NIS 100,000 to Shraga Brosh, the former president of the Association of Manufacturers after he was convicted of tax offenses of approximately NIS 1.6 million.
Last July, Judge Dana Amir convicted Brosh of forgery and fraud intended, according to the indictment, to present a false representation to the tax authorities in order to save approximately NIS 1.55 million in tax, for the sale of shares the company owned.
Brosh was forced to resign from his position as president of the Manufacturers Association about four and a half years ago, when the suspicions against him were revealed.
The indictment in the case was filed about three years ago.
According to the indictment, Shraga Brosh and his brother Yariv Brosh owned the shares of ALEA Investments, which owned the shares of Oshard Natural Gas, which was involved in the production of gas from the Tamar reservoir.
ALEA sold its shares in Oshard, a transaction that brought it a capital gain of approximately NIS 8.6 million.
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Forged three documents that would have allowed him to pay reduced tax/Creative Commons
According to the indictment, the company requested to be recognized as a family company, a status that improved its situation with the tax authorities.
If ALEA was a family company, it would have a tax benefit for the capital gains.
According to the indictment, at a date that is not precisely known after June 2015, Brosh and Bar Levev, the company's accountant, decided to deceive the assessor by creating a false representation according to which a request was submitted to recognize the company as a family company at the time.
For this purpose, the two, together, forged three documents whose purpose was to present a representation according to which the request was submitted within the 3 months from the date of the company's establishment.
The two submitted documents to the assessor which include the forged documents.
Brosh and Bar Levev accountants contacted the assessor several times, and asked to recognize the company as a family company based on the forged documents.
On January 18, 2017, Barush and Bar Levev submitted to the Tax Authority an annual report on the company's income for 2015, signed by Barush, to which was attached a financial statement audited by Bar Levev accountants.
The report states that the company was registered as a family company.
Due to the false references and statements and plan, the company was classified as family.
Ben Baruch, who served as Shraga Brosh's accountant, is accused of submitting his personal reports to the Income Tax.
Judge Amir determined that the prosecution's claims were proven beyond any reasonable doubt.
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