A sentence was passed in the case of two people convicted in avoiding payment of import tax

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by: gill@nadel-law.co.il
Word Count: 751
Date: Sun, 4 Dec 2011 Time: 9:02 AM

The facts of the case and claims of the parties:

The defendants, workers for S,A. spare parts north company , which trades with spare parts for vehicles, were convicted, according to their confessions, in avoiding customs duties payment, handing in false import entries, misleading a customs official  and committing other offenses relating to import and payment of import taxes. All in all, by committing these offenses, the defendants avoided paying 740,000 NIS including customs duties, Purchase tax and VAT.

The parties reached a lenient plea bargain according to which one of the defendants would do community services and the other defendant would be on probation since he paid part of the company’s debt. The parties requested the court to accept the plea bargain.

The verdict:
The court noted that the leading consideration in the sentences of such offenses is to create a deterrence and prevent such offenses from being repeated.
The court noted that these cases usually call for sever punishments of jail time, particularly if the tax deficit was not fully paid for. The court further noted that in this case, the defendant paid only half of the tax deficit, and only the nominal sum.

Nevertheless, the court took into consideration that the defendants pleaded guilty, even though it wasn't at the beginning of the trial but only when the evidence was displayed; and also the fact that they had no former criminal record.
The court also noted that it took into consideration the fact that the offenses were committed many years ago, between 2001-2003 and that the company was no longer active.

Another consideration of the court was the financial hardships of one of the defendants and the fact that the other defendant had an impressive background in the IDF (Israeli Defense Forces), and also the fact that part of the debt was returned by one of the defendants, which showed remorse.

In light of all this, the court accepted the plea bargain and sentenced the company a fine of 1,000 NIS, 3 months of community service for one of the defendants 12 months probation and a fine of 60,000 NIS. The court sentenced the other defendant with 6 months probation and a fine of 27,000 NIS.

Conclusions and Discussion:
It appears that in this case the defendants reached a lenient plea bargain compared to the offences they were convicted for and it seems the court was aware of that when it handed down its verdict.
It is important to note that even if the parties reach a plea bargain, the court does not have to accept it and it can divert from it. However, generally, the court respects such plea bargains and so was the case here.

(C.F. (criminal file) ( Magistrate Ashdod) 476-06 The state of Israel- Customs house Ashdod Vs. S,A. spare parts of the north  Ltd. Et al., verdict from 28.4.11 Judge H.Hadash, representatives of the parties – for the state –adv. Orlev, For the defendants-  adv. Meushar & Nackar)

About the Author

Gill Nadel - Born in Israel in 1969, graduated from Bar Ilan University`s Faculty of Law (cum laude) and from the Department of Musicology. He also has a master`s degree in law from the same institution. Member of the Israel Bar since 1999. Speaks Hebrew, English and Polish. Fields of expertise: Commercial and Business Law, International Trade Law, Import and Export Law, Intellectual Property Law, Maritime and International Forwarding Law, Litigation and Court Representation. Adv. Nadel provides lectures on international trade law and import and export law to in courses organized by the Bar Ilan University Center for Commercial Law, Israel Bar, Israel Chambers of Commerce, Manufacturers Association of Israel, Israel Export Institute, Customs Brokers Association, International Forwarders, and more.

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