Last week Tax Authority inspectors raided haredi businesses, auditing
137 of them in the Geulah neighborhood adjacent to Mea Shearim in
Jerusalem. They also raided and audited other businesses in Ramle and
Lod. Both of those cities have large Arab populations along with
significant haredi populations. But the inspectors avoided
conducting raids in Mea Shearim proper, where the percentage of
noncompliant businesses could easily have approached 100%.
Tax Authority Raids Haredi Businesses In Search Of Tax Cheats
Shmarya Rosenberg • FailedMessiah.com
For years, Israelis have claimed that haredi businesses in Mea Shearim and other heavily haredi areas of the country habitually cheat on their taxes, and for years, Israel’s Tax Authority has largely avoided trying to enforce the law in those areas – in part because on the few times they have tried, haredim have often rioted in response to the arrests made.
But Ha’aretz reports that last week Tax Authority inspectors raided haredi businesses, auditing 137 of them in the Geulah neighborhood adjacent to Mea Shearim in Jerusalem. They also raided and audited other businesses in Ramle and Lod. Both of those cities have large Arab populations along with significant haredi populations.
But the inspectors avoided conducting raids in Mea Shearim proper, where the percentage of noncompliant businesses could easily have approached 100%.
Mea Shearim is home to many haredi sects that do not recognize the Government of Israel and who refuse to pay taxes. Previous tax raids there have been met with violence and riots.
17.5% of the businesses raided in Geulah did not record all revenue. Inspectors reportedly found off-the-books transactions and other shenanigans.
A well-known Jerusalem coffee shop’s cash register allegedly did not record transactions at all, and the coffee shop had no record of sales for the previous two weeks. At another Jerusalem business, a transaction initiated by the auditors was reportedly not recorded in the business’s books.
No arrests were reported in last week’s tax raids, and no violence in response to those raids was reported.
[Hat Tip: Fifth Columnist.]