Israeli authorities go after NFT creators suspected of tax evasion.
The news of the investigation comes after the recent arrest of a graphic designer from Tel Aviv accused of similar offenses.Israel Tax Authority is investigating twocreators in Jerusalem who did not report millions of U.S. dollars in revenue received from the sale of their digital works. The tokens they offered were based on a 3D scan of the stones of the Western Wall.
Investigators were able to establish that since 2021 the two Israelis sold 1,700 digital works for 620. At rates at the time of transactions, the total was worth around 8 million shekels . Tax officials view these revenues as business earnings, but the pair did not report them as such. The project has also agreed to stop selling the Holy Rocks NFTs until the end of legal proceedings, according to its website. “However, we will make it clear that all other activities planned for the community will take place as scheduled,” the team behind the organization stated.
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