Israeli banks named in Australian tax evasion affair

Former Nudie Juice CEO Andrew Binetter allegedly sought the destruction of incriminating files at Bank Hapoalim.

The names of Israeli banks Bank Hapoalim (TASE: POLI) and Israel Discount Bank (TASE: DSCT) have been mentioned in the Australian press as involved in alleged tax fraud in the millions of dollars by Andrew Binetter, former CEO of juices company Nudie Juice.

Binetter has been indicted on charges of tax evasion. His sister-in-law Deborah Huber testified in court that he paid tens of thousands of dollars in an attempt to organize the destruction of incriminating documents at Bank Hapoalim via an Israeli lawyer.

A report in “The Australian’ says the Australian Tax Office accuses Binetter and his family of bringing about $20 million into Australia between May 2006 and January 2009, money that the ¬family said was borrowed from Bank Hapoalim or Discount Bank. The family then allegedly claimed tax deductions on the interest it paid on the loans. The Australian Tax Office alleges that in a so-called “back-to-back” arrangement the interest rate was actually matched with the interest paid to offshore accounts held by the family. The family denies the claims. “The Australian” connects the case to probes by the US authorities into abetting of tax evasion by Bank Hapoalim and Bank Leumi. Swiss banks are also allegedly involved in the Australian tax evasion affair.

Nudie Juice controls about 29% of the natural juices market in Australia.