October 15, 2013 The Israel Tax Authority recently renewed its investigation of the Jackob (Kobe) Maimon’s case

Haarez The Marker

Shuky Shade

October 15,2013

The Israel Tax Authority recently renewed its investigation of the Jackob (Kobe) Maimon’s case. Authority suspects that Maimon is a the real owner and control of the EQUITAL’s  public companies group - including Isramco, Airport City, NITSBA – and not as the group is presenting, that the group owned by Haim Tsuff thru United Kingsway, a company registered in the Bahamas.

According to the company's public reports to Tel Aviv stock exchange (TASE), United Kingsway is owned by Haim Tsuff, a Dutch resident, and therefore is not obliged to give tax returns and report to the Israeli Tax Authority.

The Authority suspects that unlike the formal registration, Maimon is the real share holder in the company.

In addition, the Authority suspects that Maimon is using foreign residents that associated with him to: control and own some private companies in Israel,  run businesses on a significant scale, and act as straw persons owning land in Petah Tikva, Hadera and Kfar Shmaryahu.

The Investigation did not settle within Israel but also relates to the question of Maimon actions abroad.

According to recorded testimony of a person who was privy to things and The Marker received, Maimon’s plan was to stay abroad for four years, so he will  not be considered a resident of Israel and therefore will not be required by law to report the Tax Authority in Israel.

Then he planned to return to Israel ,and declare that while he was not a resident of Israel (and not have to pay state taxes) he earned fortune abroad. With this fortune/capital he planed to return from abroad and to acquire control of  EQUITAL from Tsuff.

Authority officials confirmed that there is an open investigation operations against Maimon, adding that the investigation was opened in 2010, and never closed.

That same year the Tax Authority conducted an investigation integrated with the Securities Authority and the Israel Police. Shortly after the investigation began, Maimon announced that he resigned from all of his rolls in the public companies of EQUITAL group and left Israel.

The investigation was suspended after David Vanunu, who conducted the investigation in the Tax Authority, was arrested and eventually convicted of corruption and bribery; he is currently serving a prison sentence.

The decision to renew the investigation was made following new information in the Tax Authority in recent months, which strengthened the authority estimates that Maimon is the real owner of substantial property - without explaining the source of his money to accumulated assets.

EQUITAL control is questionable since the mid-90s, when Maimon and Tsuff took control of Israel Credit Lines, the parent company of EQUITAL.

Over the years Maimon was associated with the control of the Equital companies, he served as the chairman, and the companies were owned by Tsuff.

The ownership Question was reinforced in 2009, after it was revealed, that Tamar gas field, which holds 28% by ISRAMCO, (one of the Equital's group corporation), is a worth billions/yr.

For years and Maimon and Tsuff  address the identity of the control group by referring to a spokesmen who used to refer to the reports on the stock exchange , where Tsuff is registered as the control shareholder of the companies.

In an interview to “Haaretz the Marker” on June 2011 Tsuff addressed this issue for the first time : "I am a Dutch citizen and the property is in my tax reports in the Netherlands. If I move the control to someone, it will become a tax event. During All the those years we reported the Israeli Securities Authority that I am the controlling shareholder. Maimon was a good chairman, but he is just an employee."

At that time Tsuff also addressed Maimon’s departure of Israel and his resignation of EQUITAL business ( unpublished things in an interview). "He is abroad , traveled to make money for himself ," said Tsuff" but we will do all the efforts​​, with the Livnat family (partner EQUITAL, WH), to return Maimon it to the group. Beyond that, there is nothing in holdings with me."

The tax authority 's response: "We do not usually provide details on matters of investigation."