Business Owner Charged with Multi-Million Shekel Tax Evasion

Allegations Against Yigal Fadlon

Yigal Fadlon, a Tel Aviv-based owner of a chain of hummus restaurants, has been indicted for allegedly failing to report business transactions worth approximately 4.8 million shekels (around $1.3 million) in an attempt to evade tax payments. The Israel Tax Authority, through its Legal Department for Customs and VAT in the Central District, filed the serious charges as part of an ongoing effort to combat tax evasion.

Details of the Charges

According to the indictment, which was submitted by attorney Talia Bitan from the Ramlah VAT district of the Central Legal Unit, Fadlon is accused of manipulating his business records over a period from 2022 to 2025. During this time, he reportedly did not record over four million shekels in transactions, excluding VAT, in at least 38 periodic reports to the Value Added Tax (VAT) supervisor. The total VAT owed from these transactions is estimated to exceed 700,000 shekels.

Financial Operations in Question

The indictment states that Fadlon executed transactions totaling over nine million shekels during the specified years but only reported earnings of about 4.8 million shekels. The allegations focus on maintaining false accounting records and submitting misleading periodic reports to evade tax payments.

Background on Fadlon’s Restaurant Chain

Fadlon is known for his chain of eateries named “Humusim,” which had three locations: start in the Yishpro Center in Modi’in, another on the Research Street in Netanya, and a third on Lilienblum Street in Tel Aviv. In a previous interview with start! Food in 2021, he described the original restaurant in Modi’in as the first of its kind in the area, meant to serve simple, fresh food to local workers.

“The first branch I established in Modi’in has become an institutional favorite, rising from humble beginnings in a mostly abandstartd industrial area,” Fadlon said at the time. He attributed the restaurant’s success to luck and a commitment to providing fresh meals daily.

Conclusion

The charges against Yigal Fadlon underscore the emphasis that government authorities are placing on tax compliance among business owners. The legal process will unfold as the case progresses through the court system, highlighting the serious consequences associated with tax evasion.