{"id":5822,"date":"2025-01-06T21:22:39","date_gmt":"2025-01-06T19:22:39","guid":{"rendered":"https:\/\/ish-shalom.co.il\/what-is-a-tax-investigation\/"},"modified":"2025-09-15T12:21:50","modified_gmt":"2025-09-15T09:21:50","slug":"what-is-a-tax-investigation","status":"publish","type":"post","link":"https:\/\/ish-shalom.co.il\/en\/what-is-a-tax-investigation\/","title":{"rendered":"What is a tax investigation?"},"content":{"rendered":"<p><span lang=\"HE\">A tax investigation is essentially an economic investigation and is carried out by the investigation departments of the Tax Authority in the various districts. There are tax investigations that incorporate additional criminal offenses besides tax offenses, in which case the investigation will be conducted in cooperation with additional investigative agencies, for example the Israel Police, and will be called a Special Investigation Team (SIT).<\/span><\/p>\n<p><span lang=\"HE\">A tax investigation can be opened against an individual, self-employed person, or company\/corporation, based on suspicion of committing tax offenses, with the most common offenses being evading income (working illegally), inflating expenses by using fictitious tax invoices, filing false reports, smuggling goods, and the like. Likewise, a tax investigation can also be opened due to suspicion of committing a technical offense, with the most common being failure to file reports, maintaining books that are not in accordance with instructions, failure to transfer withholding payments, and the like.<br \/>\n<\/span><\/p>\n<p dir=\"RTL\"><strong><span lang=\"HE\">So how is a tax investigation opened?<\/span><\/strong><\/p>\n<p dir=\"RTL\"><span lang=\"HE\">As a rule, an investigation will begin covertly. The Tax Authority operates an intelligence system that includes intelligence officers whose job is to collect information on various subjects. An investigation can be opened by receiving information from an intelligence source operated by the intelligence officer or based on suspicion that arises in the Tax Authority&#8217;s sophisticated data analysis systems. Upon receipt of the information, a covert investigation is opened, the main purpose of which is to substantiate the suspicions and collect evidence in preparation for the open investigation. <span style=\"text-decoration: underline;\"><strong>At this stage, the suspect\/under investigation is unaware that a covert investigation is being conducted against him<\/strong><\/span> . The collection of materials and evidence by the intelligence system is done covertly and with the help of a variety of methods and means, most of which are confidential.<\/span><\/p>\n<p dir=\"RTL\"><span lang=\"HE\">After the evidence is collected and suspicion is established, the investigation becomes open. In this case, Tax Authority investigators arrive at the suspect\/investigated person&#8217;s home unexpectedly in the early morning to search the home, during which evidence of all kinds will be seized (documents, computers, phones, digital files, etc.). It is highly likely that on the same day, a search will also be conducted at the suspect&#8217;s business or at the accountant&#8217;s office to seize evidence and even investigate and question them. At the end of the search, the suspect will be detained and taken to the Tax Authority&#8217;s investigation facility, where he will be interrogated for hours and the evidence collected will be presented to him and his response will be required.<\/span><\/p>\n<p dir=\"RTL\"><strong><span lang=\"HE\">From my rich experience, I can say that the moment when the suspect\/under investigation wakes up in the early morning and discovers that a covert and now open investigation has taken place against him is a very difficult, surprising and unpleasant moment for him and his family.<\/span><\/strong><\/p>\n<p dir=\"RTL\"><span lang=\"HE\">As a general rule, at the end of the interrogation at the interrogation facility, the suspect will be brought before a judge for the purpose of extending his detention for interrogation purposes. This is because there are many investigative actions that Tax Authority investigators must perform, actions that can only be performed when the suspect is in custody without the ability to disrupt the investigation by coordinating versions or concealing investigative materials that the investigators have not yet reached, as well as for the purpose of conducting interrogation exercises, for example, inserting a dubber into the suspect&#8217;s cell, etc.  <\/span><\/p>\n<p dir=\"RTL\"><span lang=\"HE\">It is very important to be represented from the first moment a person\/businessperson\/corporation realizes that a tax investigation is being conducted against them. Tax Authority investigators are highly professional and thorough and undergo extensive training. Any attempt to deal alone with Tax Authority investigators may cause irreversible damage to the suspect\/investigated person, thereby harming the chance of completing the procedure while significantly reducing the damages.<\/span><\/p>\n<p dir=\"RTL\"><span lang=\"HE\">A tax investigation is a very serious business!!! The suspect is confused after being surprised early in the morning and is under a lot of pressure. The best way to proceed immediately when you realize you are under investigation is to not speak at all until the lawyer representing you arrives.<\/span><\/p>\n<p dir=\"RTL\"><span lang=\"HE\">Our firm has extensive experience in the field of tax investigations in all stages of the investigation and the legal proceedings involved.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A tax investigation is essentially an economic investigation and is carried out by the investigation departments of the Tax Authority in the various districts. There are tax investigations that incorporate additional criminal offenses besides tax offenses, in which case the investigation will be conducted in cooperation with additional investigative agencies, for example the Israel Police, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2371,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48],"tags":[2064,2063,2067,720,934,2062,2049,2061,2053,689,2052,2048,2047,2059,2057,2060,2056,2051,2054,719,2065,2058,2066,771,2055,2050],"class_list":["post-5822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-capital-statement-investigation","tag-corporate-tax-investigation","tag-criminal-settlement-for-tax-offenses","tag-criminal-tax-investigation","tag-customs-ordinance","tag-detention-of-a-suspect-in-a-tax-investigation","tag-economic-investigation","tag-economic-investigation-procedure","tag-failure-to-submit-reports-to-the-tax-authority","tag-fictitious-tax-invoices","tag-improper-bookkeeping-en","tag-income-concealment","tag-income-tax-ordinance","tag-investigating-a-suspicious-tax","tag-legal-advice-in-tax-investigation","tag-legal-representation-of-the-tax-authority","tag-material-tax-offenses","tag-open-investigation-by-the-tax-authority","tag-smuggling-of-goods","tag-tax-investigation","tag-tax-investigation-following-false-reporting","tag-tax-investigation-lawyer-en","tag-tax-investigation-process","tag-tax-offenses","tag-technical-tax-offenses","tag-undercover-tax-investigation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Have you been summoned for a tax investigation? 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