The Israel Tax Authority said it had uncovered a new scheme to conceal income through ATMs installed in stores and kiosks. The owners deposited cash into the device and received a “clean” bank transfer to their account.
Mako writes about this.
In recent weeks, a grocery store owner in Rishon LeZion and a kiosk owner in Ashdod were detained. The investigation believes that they used ATMs in their retail outlets to hide the proceeds. We are talking about millions of shekels.
The most high-profile case concerns Yitzhak Asraf, a shop owner and real estate agency in Rishon Lezion. The IRS said he received cash from clients for years and did not report it. Instead, he deposited money into an ATM located in his store. The company – the owner of the ATM – transferred the same amount to his bank account by bank transfer, withholding a commission. As a result, the funds looked like legal non-cash income.
An analysis of bank accounts showed that between 2020 and 2024, Asraf’s accounts received more than NIS 20 million from the ATM operating company. During the inspection, inspectors also discovered that tens of thousands of shekels in income were not reflected in the books.
Investigators questioned the owner of a kiosk in Ashdod last week, the department said. He is suspected of using the same scheme. The department emphasizes that the investigations are taking place as part of the fight against the shadow economy and money laundering methods, including through ATMs at retail outlets.
The department explained how this system works. ATMs in stores are owned by companies that have received special permission from the capital market regulator. In some cases, companies maintain the devices themselves and pay a rental fee to the business owner. In other cases, the ATM is operated by the entrepreneur himself. He receives a commission for each cash withdrawal transaction.
The agreement obliges the ATM holder to open a separate bank account. The company transfers funds related to the operation of the device to it. Cash that the owner deposits to replenish the ATM must be withdrawn only from this special account. According to investigators, Asraf did not open such an account. He used his regular business accounts. Thus, according to management, he mixed funds to replenish the ATM with store income and hid part of the proceeds.
Cursor previously wrote that Zara has sharply reduced prices in Israel: clothes for 14.90 shekels.
Source:
cursorinfo.co.il