Indictment: Senior Tax Authority official extorted, accepted bribes

David Vanunu, who until recently served as head of the Tax Authority’s National Investigations and Field Intelligence Branch, acted as though Authority were his private business, prosecution claims; indictment states he took bribes over several years for making tax problems 'go away'; senior Kadima faction official served as intermediary

Naama Cohen-Friedman|Published: 03.10.11 , 12:36

Senior Tax Authority official David Vanunu has been charged with extortion, accepting bribes, conspiracy to commit a crime, breach of trust and obstruction of justice.

An indictment filed with the Tel Aviv District Court on Thursday alleged that Vanunu, who until recently served as head of the Tax Authority’s National Investigations and Field Intelligence Branch, acted as though the Tax Authority were his own a private business.

Meanwhile, his remand has been extended by a week.

According to the indictment, Vanunu took advantage of his position to intimidate people with tax troubles and received bribes over several years in exchange for making tax problems “go away.”

He allegedly started his "side business" in early 2007, when he and now-deceased businessman Ran Hadar agreed that the latter would refer people with tax problems to Vanunu's care for a fee that the two would split. The partners also asked senior Kadima faction member Yoel Mugami to serve as an intermediary and refer additional "clients" to Vanunu.

One of these "clients," according to the indictment, was singer Kobi Peretz, who in 2008 was ordered to pay NIS 350,000 ($98,000) in income tax. Peretz's manager, Yochai Yaish, sought Mugami's help. Vanunu and Hadar informed Yaish that closing the case would cost the singer between NIS 150,000 ($42,000) and NIS 180,000 ($50,000), which would be paid to the Tax Authority, and an additional NIS 50,000 ($14,000) in cash for themselves. Peretz refused to pay and reached a settlement with the Tax Authority in 2008.

According to the indictment, Vanunu tried to intimidate Yaish by telling him that he had tax problems of his own. Yaish agreed to pay Vanunu NIS 200,000 ($56,000) to resolve his tax troubles. Mugami, who served as a middle-man in the bribe transfer, allegedly kept NIS 20,000 ($5,600) for himself.

Following Yaish's arrest, Vanunu told Mugami he would pay Yaish "a small sum" for not implicating him in the affair.

The indictment goes on to describe how Vanunu instructed Mugami to inform his associate, businessman Kobi Maimon, that he too had tax troubles and was not allowed to leave the country. The defendant said he would handle Maimon's tax issues in exchange for $125,000 and that he would split the money with Mugami. Maimon rejected Vanunu's offer.

The indictment further claims that Attorney Dalia Schori, the wife of Kadima Director-General Moshe Schori, also turned to Mugami in a bid to extricate herself from a Tax Authority investigation. Vanunu agreed to help Schori in exchange for the appointment of one of his associates to a senior position in Kadima's computer department. However, the deal did not go through.