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Photo: Yaron Brener
Shraga Brosh
Photo: Yaron Brener

Manufacturers’ Association president suspected of tax evasion

Shraga Brosh and his brother Yaniv arrested by Tax Authority on suspicion of evading paying more than NIS 1.5 million in taxes on NIS 8.6 million deal involving a company they co-own.

The Israel Tax Authority has arrested Shraga Brosh, the president of the Manufacturers’ Association of Israel, and his brother Yaniv on suspicion of evading paying more than NIS 1.5 million (roughly $410,000) in taxes.

 

 

The court ordered their release from custody under restrictions with a personal bail of NIS 500,000 and barred them from leaving the country. Accountant Michael Bar Levav, who is suspected of helping the brothers with the tax evasion, was also released under restrictions.

 

Brosh is considered one of the most influential people in the Israeli economy. His brother Yaniv serves as chairman of the Metal and Electrical Industries Association.

 

Shraga Brosh, president of Manufacturers' Association of Israel  (Photo: Nitzan Dror)
Shraga Brosh, president of Manufacturers' Association of Israel (Photo: Nitzan Dror)

 

Brosh is suspected of sending a false document to the Tax Authority in 2017, thereby evading paying taxes amounting to more than NIS 1.5 million for a deal involving a company the brothers co-own and failing to pay corporate tax for a deal said to be worth more than NIS 8.6 million.

 

The Tax Authority investigation began following an income tax assessor audit, which raised suspicions of criminal conduct by the Brosh brothers in the company they own.

 

The company was registered as private in 2014. In October 2015, it reported the sale of 14 percent of the Oshrad Natural Gas company’s shares, which it holds, for more than NIS 8.6 million.

 

The investigation revealed Brosh had realized the taxes would be high, so he decided it would be better for him and his brother to register the company as a family company for tax purposes. The debate on the company’s registration lasted three years, and last year Brosh allegedly sent the Tax Authority a falsified document.

 

On Tuesday, Tax Authority investigators searched the suspects’ home, the company’s offices and two accounting firms, and seized documents and hard drivers. The suspects were taken in for questioning by the Tax Authority.

 

Shraga Brosh’s office issued the following response: “Mr. Brosh was surprised by the investigation, which focuses on a very specific and narrow issue. This is the first time he is questioned in any context after decades of extensive business and public activity. Mr. Brosh is, of course, cooperating and is confident that this whole matter will be behind him within a short period of time.”

 


פרסום ראשון: 06.30.18, 13:01
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