Netanyahu sought tax breaks that would benefit billionaire, ex-finance minister tells court

Israel’s opposition leader Yair Lapid testified in court in Jerusalem on Monday that prime minister Binyamin Netanyahu twice tried to persuade him to back legislation that would have given a Hollywood mogul millions in tax breaks.

The court was considering Case 1,000 – one of the three corruption cases involving Mr Netanyahu – in which Israel’s longest-serving prime minister is accused of attempting to grant a tax break to billionaire Arnon Milchan in exchange for lavish gifts from the tycoon.

“There were two occasions, once when we sat in Balfour [the prime minister’s official residence] and one time at the entrance to the cabinet meeting,” Mr Lapid testified, referring to events alleged to have taken place in 2013 when he served as finance minister under Mr Netanyahu.

Mr Lapid said he told Mr Netanyahu that it was not going to happen, and the prime minister responded that it was “a good law”.

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According to the indictment, Mr Milchan – an Israeli who lives in London – supplied Mr Netanyahu and his wife Sara with illicit gifts of pink champagne, cigars and jewellery worth €230,000.

It is alleged that in return, Mr Netanyahu sought to extend the period stipulated in the law for tax exemptions that would have benefited Mr Milchan and also tried to persuade US officials to grant him a 10-year US visa.

Mr Lapid told the court that prior to Mr Netanyahu mentioning the tax breaks, Mr Milchan and his attorney had also approached him, requesting that he look into “extending by another 10 years” the law that grants temporary tax immunity to returning Israelis who have spent time abroad.

They argued that such a tax benefit would encourage Israelis who live abroad to return home and invest in the country.

Mr Lapid repeated what he told police detectives – that he raised questions about the request and referred it to the finance ministry for review and subsequently informed Mr Milchan that he did not intend to promote regulations in a way that would benefit him.

Mr Netanyahu is charged with fraud, breach of trust and accepting bribes in three separate criminal cases.

Case 2,000 centres on an allegation that Mr Netanyahu asked the publisher of the Yedioth Ahronoth newspaper for more positive coverage in exchange for help in reining in a rival publication, the popular, pro-Netanyahu free newspaper Yisrael Hayom, owned by now-deceased American casino mogul Sheldon Adelson, a close friend of the prime minister at the time.

Case 4,000 involves claims that Mr Netanyahu ensured financial benefits for telecoms mogul Shaul Elovitch in return for favourable coverage on a popular news website owned by Mr Elovitch.

Mr Netanyahu, the first serving Israeli prime minister to go on trial, denies all the allegations and claims the corruption scandals are nothing more than a witch-hunt by the left, supported by the judiciary and media, in an effort to topple him from power.

Critics claim his controversial attempt to weaken the judiciary is an attempt to escape justice.

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Mr Netanyahu’s trial began three years ago and is slated to last at least another two years, although there are reports that the extensive witness list could be trimmed in an effort to shorten the proceedings. Efforts to reach a plea bargain last year reportedly failed over Mr Netanyahu’s refusal to accept a moral turpitude clause that would have ended his political career.

Mr Milchan is expected to testify via video link from the Israeli embassy in London next week and the court has ruled that Sara Netanyahu can be present during the testimony.