Two arrested in Orbotech tax probe

Orbotech CEO Asher Levi, photo: Eyal Yitzhar
Orbotech CEO Asher Levi, photo: Eyal Yitzhar

VP Finance Tal Opher, and Avishay Bardugo, a tax partner at PwC Israel - Kesselman & Kesselman, are suspected of concealing interest on a loan to an Orbotech subsidiary.

The Israel Tax Authority's investigation of automated optical inspection equipment company Orbotech Ltd. (Nasdaq: ORBK) has moved up a gear. The company's VP Finance Tal Opher, and Avishay Bardugo, a partner in the tax department of accounting firm PricewaterhouseCoopers Israel - Kesselman & Kesselman have been arrested and questioned by the Tax Authority on suspicion of having committed tax offenses in connection with the company's "loan affair".

The two were arrested on the suspicion that they were responsible for the company failing to report interest received of NIS 44.6 million on a loan granted to a Belgian subsidiary.

The investigation became overt yesterday when Orbotech reported to the US Securities and Exchange Commission that it had received a demand for payment of NIS 207 million ($58 million) tax. Orbotech said in a statement that it would appeal against the tax assessment, and that it was cooperating with the investigation.

Published by Globes [online], Israel business news - www.globes-online.com - on May 23, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Orbotech CEO Asher Levi, photo: Eyal Yitzhar
Orbotech CEO Asher Levi, photo: Eyal Yitzhar
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