Israel Tax Authority Charges Western Wall NFT Authors With $2 Million Tax Evasion

Key Points:

• Israel’s tax authority on Friday said it was investigating tax evasion by two Western Wall NFT creators.
• The agency alleges that the two suspects sold 1,700 works since 2021 and obtained 620 Ethereum payments of approximately US$2.18 million.
• Some of the funds received by the suspects were even transferred between digital wallets, which raised suspicions of the concealment of assets.
• The judge presiding over the case allowed the suspects to be released on limited conditions, including handing over digital wallets in which they had stored ETH.

According to The Jerusalem Post, a Friday notice from the Israeli tax authority said the agency is investigating tax evasion by two NFT creators. The duo Avraham Cohen and Antony Polak own the website Holyrocknft.com., through which they both sold their NFTs.

According to tax authorities, the two NFTs sold were generated based on 3D scans of the Western Wall rock through the website but did not report accurate taxes. The investigation revealed that since 2021, the suspect sold 1,700 works and received a payment of 620 ETH, or about NIS 8 million (about US$2.18 million) at the time of the transaction.

According to these findings, these receipts were, in fact, business income – but the couple did not report them as such.

According to the findings, the income was indeed business income, but the duo did not report it. The tax authority reports that the investigation is ongoing.

Some of the funds received by the suspects were even transferred between digital wallets, so there could be suspicions of an illegal stash of assets.

The judge presiding over the case released the suspects under limited conditions, including handing over the digital wallet in which they had stored ETH.

Previously, Ben Benhorin, a graphic designer from Tel Aviv specializing in creating and selling NFT-type digital art, was also arrested by Israeli authorities on February 26 for failing to report his business collected a total of about 3 million NIS from his sales nor report the conversion of 30 Ethereum – the digital currency he received as payment.

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