Israeli Contractor Arrested Over Suspected 6 Million Shekel Tax Evasion
Israeli contractor Suhaib Zagarna was arrested on suspicion of concealing 6 million shekels in revenues, adding to a major crackdown on financial fraud in the country's construction sector.
The Tax Authority has disclosed a new tax evasion case within the real estate sector, involving Suhaib Zagarna, a building contractor from the town of Lakiya who operates primarily in the southern region and the Arava. Zagarna was arrested on suspicion of concealing revenues totaling approximately 6 million shekels. He was brought before the Rishon LeZion Magistrate's Court, which granted the investigators' request and ordered his release under restrictive conditions to allow the continuation of investigative procedures.
According to the arrest and bail release request, the overt investigation was launched following intelligence and operational activities by Yahalom Unit, the Tax Authority's national investigations and crime-fighting unit. Investigators suspect that over recent months, Zagarna systematically omitted a substantial portion of his revenues derived from construction work performed for various clients across the south.
During the investigation, agents raided various locations and seized accounting documents and digital media under court warrants, alongside bookkeeping materials from the suspect's representative. Initial examination of the materials and a meticulous analysis of his bank accounts revealed a troubling discrepancy: the sums actually transferred to him by clients were significantly higher than the turnovers he reported to tax authorities. The central suspicion is that between 2021 and 2025, the unreported gap accumulated to approximately 6 million shekels.
This arrest is part of a broader wave of enforcement actions shaking the Israeli construction market in recent weeks, as law enforcement agencies ramp up pressure on the sector and target widespread fraud, money laundering, and fictitious invoicing offenses. Concurrently, other high-profile investigations have emerged, including a large-scale probe involving businessman Dodi Appel regarding the alleged concealment of real estate rights, alongside enforcement measures by the Registrar of Contractors against companies failing to properly employ declared engineering personnel.
