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Mori Arkin. Home raided by tax investigators
Mori Arkin suspected of tax evasion
Tax Authority investigating why businessman, said to be worth $1 billion, failed to pay full taxes on revenues from sale of Perrigo stock. Probe to be completed after Arkin claimed to act in good faith, agreed to pay tax
The Tax Authority is investigating suspicions of alleged tax evasion by businessman Mori Arkin, Calcalist has learned.

 

Tax investigators raided Arkin's house last month, confiscated documents and questioned him for an entire day. Arkin's accountant was questioned as well.

 

The case involves NIS 5 million (about $1.32 million) in taxes which Arkin should have paid on revenues from the sale of Perrigo stock and stock options in February 2011.

 

Arkin was the controlling shareholder of the Aegis pharmaceutical company, which was acquired by Perrigo in early 2005. Arkin received NIS 1.7 billion ($450 million) worth of stock and stock options at the time of the merger, and additional stock and options during his tenure as director and VP of the company.

 

Solution: Tax payment with interest

About a year ago, Arkin sold Perrigo shares for more than $100 million. He paid the due taxes for most of the stock, but did not pay NIS 5 million in taxes for revenues on the stock he received since the merger.

 

Arkin did not deny the allegations, but claimed that it was a mistake made in good faith.

 

The Tax Authority investigation is about to be wrapped up, and it appears that the matter will be resolved with Arkin paying the debt including interest and linkage rates.

 

Today Arkin holds about 5% of Perrigo's shares and the controlling interest of several biotech companies, including Exalenz Bioscience, which is traded on the Stock Exchange. He also owns the Hapoel Ramat Gan soccer team.

 

Calcalist has learned that Arkin was confounded by the investigators' raid of his house and from the questions he was asked by the investigators as he was in the dark regarding the allegations.

 

Arkin called the affair a mishap and referred Calcalist to his accountant Dudi Gilboa, who said: "When the stock was sold in February 2011 I discovered that the tax at source was not deducted.

 

"The whole affair is a mistake made in good faith, and Mori had no way of knowing about it. I believe, however, that the matter is close to being resolved."

 

The Tax Authority said in response that it could not comment on the matter due to its confidentiality.

 

Click here to read this report in Hebrew

 

 


פרסום ראשון: 01.23.12, 08:38
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