The (Israeli) Taxman Cometh

both from Haaretz:

Financiers fear Madoff-style fraud in Israel

Senior figures in Israel’s financial industry fear that a Madoff-style fraud could happen in Israel. The private investment fund market is considered the most vulnerable arena, since in Israel, as in the United States, it is unsupervised.

Madoff funds may have been used to evade taxes

Hundreds of Israelis who invested their money in the funds managed by Bernard Madoff and won’t have nice returns to look forward to anymore, may soon be required to report to the Israel Tax Authority on where they got their money from.

Madoff’s wide net of connections in Israel and worldwide Jewish communities drew quite a number of Israeli investors. Many of them saw Madoff as not only a way to earn a nice return on their money, but also as a way to avoid the income tax authority’s watchful eye.