The Israel Police and the Tax Authority operated yesterday (Wednesday) at a business in Tira in the Triangle that is suspected of dismantling, processing and exporting stolen catalytic converters. Business owners have been detained on suspicion of VAT, customs and money laundering offenses. In addition, the authorities froze NIS 3.7 million in VAT refunds as part of the investigation.
The catalytic converter is part of the vehicle’s exhaust system and its function is to convert harmful gases in the vehicle into more environmentally friendly gases, thus reducing environmental air pollution. The converters contain rare and valuable metals such as rhodium, palladium and platinum which are used in various industries. In view of many cases of theft of converters from vehicles and in addition to the ongoing activity against the converters, the police and the tax authority are working against the “export smugglers” who purchase the stolen converters, process them and export them to countries around the world.
Yesterday, police officers from the Hof District Central Unit (SAR), Tira Station police officers, Yeshar Sharon fighters, together with Haifa and VAT investigators from Haifa and Netanya VAT, worked at a business in Tira in the Triangle, which allegedly purchased stolen catalytic converters. , Processes and exports them to various countries in the world. During a search of the business, various documents were seized. The business owners, residents of Tira (31, 33) were detained for questioning on suspicion of customs offenses, VAT and money laundering at the end of which were released on restrictive conditions. In addition, as part of the investigation, VAT refunds to the business in the amount of NIS 3.7 million were frozen.
The suspicion against the business owners arose following an investigation by the Regional VAT Office in Netanya and the Haifa Customs and VAT Investigation Unit. During the investigation, it became clear that the business owners used suspicious invoices in order to deduct inputs and receive VAT refunds. The invoices presented transactions for the import of precious metals at purchase amounts significantly lower than the amounts that appeared on the export invoices of the same business. Also, when one of the business owners was asked about his source of import he did not know how to specify basic details regarding the supplier.
As a result, suspicion has arisen that business owners are using fake invoices in order to deduct input tax. It is also suspected that these invoices are intended to cover the fact that the source of the goods exported by the business owners is in theft. The investigation continues.
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