Criminal10/25/2026

44 Months’ Imprisonment for Fictitious Invoices and Unlawful VAT Deductions

The Ramla Magistrate’s Court sentenced Avner Elok, owner of Sagiv Fire Protection Technologies Ltd., to 44 months’ actual imprisonment. The court found that the company used 139 fictitious invoices and unlawfully deducted input tax totaling approximately 5.75 million shekels.

Key facts

•Court: Ramla Magistrate’s Court
•Period of the offenses: 2012–2015
•139 invoices from five companies
•Unlawful VAT deduction: approximately 5.75 million shekels
•Sentence: 44 months’ imprisonment
•Fine: 100,000 shekels

What Happened

From 2012 to 2015, the company received 139 fictitious tax invoices from five companies. These documents did not reflect genuine transactions, but they were included in periodic reports to the tax authorities and used to deduct VAT. According to the indictment, Elok attempted to conceal his role by appointing official managers who, in practice, followed his instructions.

The Convictions

Elok denied the charges, but after reviewing the evidence, he and the company were convicted of all the offenses attributed to them. These comprised 35 offenses of unlawfully deducting input tax under aggravated circumstances, four offenses of keeping false accounting records or authorizing them to be kept under aggravated circumstances, and one offense of acting fraudulently or authorizing another person to act fraudulently.

Why the Sentence Was Severe

The court took into account Elok’s four previous convictions for tax offenses, including a conviction for which he was sentenced to actual imprisonment. In addition, the financial loss was not repaid, even in part. Judge Hisham Abu Shahada also ordered the consecutive activation of a four-month suspended prison sentence previously imposed and rejected the argument that the suspended sentence applied only to an entirely identical offense.

The Sentence Imposed

Elok was sentenced to 44 months’ actual imprisonment, 10 months’ suspended imprisonment, and a fine of 100,000 shekels. If the fine is not paid, it will be converted into 10 months’ imprisonment. The company received only a nominal fine, the exact amount of which was not specified in the source.

What this means for you

The case illustrates that including invoices that do not reflect genuine transactions in tax reports may lead not only to additional tax assessments but also to lengthy imprisonment. In sentencing, the court considers previous convictions for tax offenses, failure to repay the loss, and a pending suspended prison sentence. The formal appointment of other people as managers does not, by itself, exempt the de facto owner from liability.

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Case analysis based on court rulings