Prosecutors announced Wednesday their intention to indict the head of the Manufactures Association of Israel on suspicion of tax fraud of some NIS 1.5 million ($410,00).
Pending a hearing, Shraga Brosh faces charges of obtaining something by fraud under aggravated circumstances, falsifying documents and intending to evade taxes, among other charges.
Brosh’s brother Yariv, who is a senior official in the Manufacturers Association, was also informed by the taxation and economic crimes division in the State Prosecutor’s Office that he would be indicted, as was their accountant Michael Bar Levav.
“Shraga did not commit any offense and will stand behind his full claim of innocence,” a statement on Brosh’s behalf was quoted as saying by Army Radio.
Brosh, his brother and Levav were arrested last year when tax authorities were alerted to possible wrongdoing after Brosh, a leading industrialist, filed paperwork dated from 2014 on a form that did not exist in that year.
Investigators suspect the brothers tried to avoid paying 50 percent tax on NIS 8,640,000 ($2,368,526) from a 2015 business deal involving a company they own. Shraga Brosh allegedly filed documents last year showing the company, Orshad Natural Gas, is a family business, a status that would entitle them to pay just 30%, a saving of some NIS 1.5 million.
The documents apparently tried to show the company registered as a family business from 2014 — but the form used did not exist until years later.