Subscribe to Print Edition | Fri., August 08, 2008 Av 7, 5768 | | Israel Time: 02:49 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Haaretz Magazine Business Real Estate Easy Start Travel Week's End Anglo File

Tax Authority stumbles onto diamond-smuggling ring after questioning tax evader By Hila Raz Tags: tax evasion, Israel The investigation into a nursery school owner in central Israel, who was detained on suspicion of tax evasion, lead the Tax Authority to a network of couriers in a diamond smuggling operation in and out of Israel. The personalities under investigation include certain high-ranking officers at high-tech companies, service and marketing directors, education consultants, and a person holding a U.S. diplomatic passport. A gag order has been placed on the names of the persons under investigation. Advertisement An investigation was launched following information from the Tax Authority that the nursery school owner had failed to report income of NIS 750,000 from the nursery which cares for nine children. According to sources in the Tax Authority, the owner admitted to the accusations levied against her, and was released to home arrest. The investigation also found that her husband, who was employed as a driver earning about NIS 40,000 annually, had made 245 overseas trips over a period of eight years, remaining there only two days at a time. A search of the nursery school last last week uncovered documents which included various calculations and tables with undecipherable codes. The owner, who was out the day that the search was conducted, was arrested at Ben-Gurion Airport upon his return and taken in for questioning. Sources in the Tax Authority said that the husband explained his frequent traveling as gambling trips to casinos overseas. After deciphering the seized documents and questioning those involved, it was discovered that the case involves 15 men and women related to one another, who acted as couriers for the transportation of diamonds, mainly to and from Russia and Belgium. The investigation uncovered more than 500 incidents of diamond smuggling, valued at hundreds of thousands of dollars. Each of the couriers received $600 for each trip, in addition to reimbursement of travel expenses. The smuggled diamonds were deposited in hidden body cavities. The Tax Authority said that the persons questioned had been released, with limitations placed on their movements. Sources at the Tax Authority say that the suspects had not been brought to court in order to prevent publication of their identity, enabling a continuing investigation and additional arrests in the affair. Bookmark to del.icio.us   Staying out Rice on possible IDF Iran strike: U.S. has no veto over Israeli military operations. Ganei Tallywood Hamas transforms former Gaza settlement into movie lot.

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