web analytics
May 22, 2015 / 4 Sivan, 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
Tzipi Hotovely, new Deputy Foreign Minister.
Foreign Minister Hotovely: Tell the World ‘God Gave Israel to the Jews’
Latest News Stories
Chabad of Dead Sea brings friends from Arad to create a last-minute celebration sheva brochot with the seven wedding blessings with a new married couple.

At the ninth hour, Chabad of Dead Sea whipped together sheva brochot in 2 hours for a newly wedded tourist couple — out of nowhere.

Tzipi Hotovely, new Deputy Foreign Minister.

Israel finally has a Foreign Minister who is not ashamed to say the word “God.”

Cairo Jews shove and curse a journalist dressed up as a Jew.

An Arab language website sent a reporter, dressed as a Jew, to the streets of Cairo.

Volunteers with Shomer Hachadash.

Eight years ago, an Israeli rancher from Moshav Zippori in the Lower Galilee region reached a breaking point. Thieves and marauders had been targeting Chaim Zilberman’s sprawling ranch; his land was burnt black and cattle fences cut down. On the verge of bankruptcy, the rancher told his family during a Friday Shabbat dinner one night […]

Scotland Yard said it cannot prevent the upcoming neo-Nazi march that is planned for July 4th.

A store in Rafah, Gaza displays women’s Islamic head coverings for sale.

A State Dept. official is in Israel to talk about making the region nuclear-free.

The highway at the property is a favorite spot for PA Arabs to try to throw

Prime Minister Benjamin Netanyahu annual medical report  as written by his personal physician, Dr. Tzvi Berkovitz, states, “Blood tests were completely normal including those for sugar, cholesterol and fats. The Prime Minister’s blood pressure was normal (120/80), aided by light medication.” The reports notes that “Prime Minister Netanyahu trains several times a week at a […]

The President will speak Friday night at Washington’s largest Conservative synagogue, probably to continue to express his opinion that Israel is racist & Israel should embody “Judeo-Christian”/universal values (as opposed to Jewish values). They’re going to lap it up .

This week ISIS captured two major cities, one in Iraq, one in Syria. Assad’s escape plan revealed.

Israeli Pres. Rivlin expresses deep concern after vandals torch a Bnei Akiva building and synagogue in northern Israel.

More than 70 percent of Muslims in Netherlands reportedly view their brethren fighting the “jihad” in Syria as “heroes.”

Israel rejects a Swiss court decision granting $1.1 billion to Iran after an oil deal went sour after the Islamic Revolution.

Liberman apologizes for describing Netanyahu’s decision to meet with head of Arab Joint Party List as “autistic.”

Former FM Avigdor Liberman slams PM Netanyahu for scheduling talks with the head of the united Arab parties.

More Articles from Shalom Bear
An MRI machine in Shaarei Tzedek hospital that Deputy Minister of Health Yaacov Litzman was responsible for introducing.

Deputy Minsiter of Health Litzman advances MRI usage in Israel–again.

Naftali Bennett and Prime Minister Netanyahu.

The Bayit Yehudi party may be wondering if the coalition agreements it signed are worth the paper they’re written on.

Who says you can’t sit in the opposition and do something positive?

Only in Israel will a Litvak MK go to a Chassideshe Rebbe to convince an “anti-Chareidi” MK to join the coalition.

The Arab was upset the Israeli emergency clinic that treated her hung up “Israeli-Jewish” flags. She should go find a clinic in Syria.

During a Knesset voice vote, an MK yelled out “in favor” in place of the missing MK Xenia Svetlova. Is this 2003 all over again?

Haaretz is upset because the coalition guidelines don’t list the delusional two-state solution as the only path to peace.

Bensouda suggested it was in “the best interest” of Hamas and Israel to provide the needed information.

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: