Rosh HaAyin Accountant Arrested Over 60 Million NIS Tech Exit Tax Omission
Israel Tax Authority arrested a Rosh HaAyin accountant suspected of omitting 60 million NIS from a client's tech exit share sale, evading 1.8 million NIS in surtax.
The Israel Tax Authority has arrested an accountant from Rosh HaAyin on suspicion of omitting approximately 60 million NIS in income from a client's personal tax return. The income stemmed from a major tech exit involving the sale of company shares to an American corporation.
The suspect, Shlomo Tzedaka, was brought before the Rishon LeZion Magistrates' Court following his investigation and was released under agreed-upon restrictive conditions. According to the investigation conducted by the Central Region Tax Investigations Office, Tzedaka represented a substantial shareholder in an innovative technology firm.
Investigation Details and Surtax Omission
Investigators found that although Tzedaka accompanied the transaction and handled the annual report and capital gains reporting, the share sale proceeds were omitted from the client's return. Consequently, an estimated 1.8 million NIS in surtax was allegedly evaded.
Computerized processing by the Tax Authority's intelligence headquarters revealed that between 2023 and 2024, the client received cumulative proceeds of approximately 60 million NIS. The funds were transferred via a trustee who deducted a 30% tax at source, noting it was merely a tax advance.
"Tax deduction at source does not exempt individuals from reporting obligations and surtax payments where liability exists," stated Tax Authority officials.
Legal Framework on Surtax
In addition to tax deducted at source, a 3% surtax applies to taxable income exceeding the statutory ceiling stipulated in the Income Tax Ordinance. This obligation extends to one-off revenues, including share sales, employee stock options, and lottery winnings. Starting in 2025, an additional 2% surtax applies to capital-source taxable income exceeding the ceiling. The investigation remains ongoing.
