Two directors of a development company are suspected of filing a fictitious claim with the Internal Revenue Service compensation fund for damages to a building in Tel Aviv jointly owned by their subsidiary and another development company.
The building is located near the site of a ballistic missile impact during the war with Iran. After the rocket hit, the company in which the suspects hold management positions filed a claim with the compensation fund, claiming that the building suffered NIS 40 million in damage as a result of the shock wave, of which about NIS 27 million was for damage to the interior of the building (walls, floors, air conditioners, electrical wiring, bathrooms, etc.). For this claim, the company was paid an advance of NIS 2 million.
An investigation launched by the tax department and the anti-fraud department of the Tel Aviv district police showed that back in May 2021, the building was declared uninhabitable by the Tel Aviv municipality at the request of the owner companies themselves, who received an exemption from paying municipal tax on this basis.
It also turned out that the destruction, which the lawsuit attributed to the shock wave from the rocket’s impact, was in fact the result of demolition work ordered by the companies themselves back in 2021 in order to obtain a tax exemption.
The managers were detained on Thursday, December 18, after the investigation entered the open phase. After questioning, they were taken to court and released under restrictive conditions.
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