web analytics
April 25, 2015 / 6 Iyar, 5775
At a Glance
News & Views
Sponsored Post


Israeli Tax Authority Kills the Next Great Startup

In their eagerness to catch some taxi drivers, did the Tax Authority destroy the trust and reputation of an innocent and promising start-up?
GetTaxi just got got.

GetTaxi just got got.

An innovative Israeli start-up company came up with a great idea in 2010, which it dubbed GetTaxi. The idea is simple and convenient: the GetTaxi mobile app allows you to order a taxi, pay for the ride, rate the driver, and even leave a tip. For the drivers, it offer the convenience of automation, handling the billing, and notifying drivers of potential nearby clients.

This start-up has been so successful, it has reached a million users, making 20,000 orders a day to 6000 drivers, in 20 cities, not to mention, raising $42 million in funding.

But the Israeli tax authority may have just killed this enterprising young start-up.

Last week, the tax authority concluded its investigation of 89 businesses in various sectors. A team of 102 investigators managed to collect about $2.2 million from these businesses, which had under-reported their income.

One sector the team investigated were taxi drivers, traditionally a cash business. But the tax folks had a great idea. They subpoenaed GetTaxi’s internal files, obtaining the records of some three thousand Israeli taxi drivers who used the GetTaxi service. The team then targeted 50 of them, according to a report in Globes.

They compared the orders listed in GetTaxi, and the income the taxi drivers reported, and found that most of the drivers had not recorded all their journeys.

Most of the drivers ended up with a simple fine, some of the more serious cases are undergoing further investigation.

Tax Authority chief Moshe Asher told Globes, “The Tax Authority is keeping its finger on the trigger and uses all technological means to make certain that all citizens and companies pay the true amount of tax and do not put the tax burden on law-abiding citizens.”

In the process, the same tax authority possibly just destroyed a law-abiding start-up company, which had a promising future.

Its unlikely Israeli taxi drivers will continue to completely trust GetTaxi with their business, and that could affect not only GetTaxi’s revenue, but even a future exit or IPO, potentially killing the goose that could have laid the golden income tax egg GetTaxi would have brought in.

But Israelis are a resourceful people. We’ll have to see how each side responds to this challenge.

Not to worry though, in New York and other major cities, the company continues to do well, and the Israeli tax authority is not likely to have a chilling effect on its operation. The IRS is simply less fiercely dedicated than its Israeli counterpart.

True story: A few years ago, a falafel booth owner was approached by a man from a yeshiva, who inquired if Shlomi were willing to donate to the yeshiva the edges from the pita he cuts off when he makes each falafel sandwich? It would feed poor students, the man explained, and help cut back on the yeshiva’s costs.

Shlomi agreed. It’s a good deed, and he had nothing to do with all those pita edges other than dump them in the trash. How many garlic bread crisps could he possibly make anyway?

A few months later, Shlomi and other falafel and shawarma (meat gyro) vendors found themselves inside the offices of Mas Hachnasa, the Israeli income tax authority.

They were surprised to see, sitting opposite them, the man from the yeshiva to which they had all been donating their pita edges, supposedly.

They were even more surprised with the man pulled out all the pita edges the vendors had donated to him, and said the number of edges that he, a tax investigator collected, exceeded the number of individual portions they had reported.

Needless to say, falafel and shawarma stores in Israel today slit the pita open, rather than cut off the top. There’s no evidence left behind that way.

About the Author: Reports news at JewishPress.com.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

2 Responses to “Israeli Tax Authority Kills the Next Great Startup”

  1. Second article this morning…sounds just like the US.

  2. Bill Wingard says:

    Those Taxi drivers will find a way to cheat, most cash businesses seem to find a way

Comments are closed.

Current Top Story
"Killing Jews is worship that draws us closer to Allah." That's his Jihad. What's yours? - An ad campaign sponsored by  the American Freedom Defense Initiative.
MTA Hopes to Change Rule, Ban ‘Killing Jews’ Anti-Jihad Ad
Latest News Stories
"Killing Jews is worship that draws us closer to Allah." That's his Jihad. What's yours? - An ad campaign sponsored by  the American Freedom Defense Initiative.

New York’s MTA plans to vote on a change to its rules it hopes would allow it to exclude the “Killing Jews” anti-jihad ad campaign.

Vice President Joe Biden.

Biden gleefully announced two of his three Catholic children married Jews – not thrilling his Jewish audience.

Armenian Archbishop Sevan (R) sits next to Greek Bishop Atallah, as they watch a live screening from Echmiadzin, Armenia, of the Church canonization of the genocide victims as saints, in the Armenian Quarter of Jerusalem's Old City.

In Jerusalem, the bells from 18 churches in the Old City of Jerusalem rang 100 times on Thursday evening, April 23, to remember the Armenian Genocide.

IDF soldiers - once upon a time.

The IDF has come up with an 81-second video showing 67 years of Israeli land, sea and ground soldiers in action.

Tennessee becomes the first state to formally condemn the BDS movement.

Snow fell in Tzfat (Safed) Friday morning, not enough to stick to the ground but enough to make residents wonder if they were dreaming or perhaps it is January. Several inches of snow fell on the Hermon as a rare mid-April storm faded away after blowing away Israelis’ Yom Ha’Atzmaut plans for cook-outs and hiking, […]

All polls show Clinton would win against any Republican, but has she peaked too soon?

Armenians marched with Armenian flags, signs, and torches from the Armenian Quarter of Old City as they mark the 100th anniversary of the Armenian Genocide, on April 23, 2015.

Iranian warships neared Yemen to support Houthi rebels despite the presence of US vessels in the area.

Poet Erez Biton, who was awarded the Israel Prize for Literature on Yom Ha’Atzmaut, used the occasion to warn against sponsors of the Boycott Israel movement. “Strident voices are being heard in the world including those who are challenging the very existence of the State of Israel,” he said. “There are even those among them […]

IDF tanks shelled a site in Gaza in response to the rocket(s) launched at Israel.

Cyber centers that guard unclassified networks reportedly detected the Pentagon security breach and kicked the hackers off “in a way that minimized their chances of returning.”

An American general says the US is facing a “national security” crisis over obesity among the nation’s youth.

10:22 PM Walla reports that according to an IDF source, 3 rockets were launched. At this point they do not think it was Hamas who launched them. 10:16 pm No specific terrorist group in Gaza has yet claimed responsibility for the rockets. 9:55 PM Reminder from the IDF: If you hear the Red Alert siren […]

The family of USAID development worker Dr. Warren Weinstein says they are “devastated” by the news he was killed in a CIA drone strike on Al Qaeda.

More Articles from Shalom Bear
A North Korean ballistic missile that was shipped to Iran.

Despite Clinton’s agreement, North Korea now has 20 nukes, and as many as 40 next year. It’s a foreboding look ahead at Iran.

Hamas shows off its missile launcher hidden underneath a soccer field

The “Palestinians” have a long history of targeting Israeli athletes.

Bayit Yehudi wants the Religious Affairs Ministry, Yisrael Beytenu wants the Foreign Affairs Ministry, and both feel Netanyahu is trying to short-change them. It’s a match made in heaven.

Liberman is adamantly insisting on receiving the Ministry of Foreign Affairs, but Netanyahu wants Liberman to step back and take something else.

Ministerial distributions are starting to firm up, but Bennett reportedly has a new demand.

The Likud could reach agreements with most of its potential coalition partners by next week.

PLO refuses “to be drawn into any armed campaign” (that’s a new one). Leftwing groups campaigning to flood Israel with Yarmouk “Palestinian refugees” for “humanitarian” reasons.

It appears Iran is telegraphing its intended breaches of the agreement in advance.

Printed from: http://www.jewishpress.com/news/breaking-news/israeli-tax-authority-kills-the-next-great-startup/2013/12/24/

Scan this QR code to visit this page online: