Israeli tax authorities raid Orbotech's HQ

The equipment manufacturer is being investigated by Israel’s Tax Authority, which is demanding payment of USD 58 million in taxes. The investigation relates to tax planning by Orbotech between 2012 and 2014. The company said it is cooperating with the investigation. On Monday, May 22, 2017, the ITA conducted an investigation that involved document collection at the company’s headquarters in Israel and at the office of the company’s tax consultant. Several of the company’s employees, including officers, are being questioned, as are tax consultants from the company’s independent registered accounting firm. "The Company believes that it has made adequate provisions for its potential tax liabilities in its financial statements in all periods. Based on the advice of its tax consultants, the company believes that it has strong arguments to dispute the positions taken by the ITA in the assessment and intends vigorously to contest the assessment in accordance with Israeli law", a SEC-filing reads. For 1Q/2017, the Israeli equipment manufacturer reported revenues of USD 187 million, a drop of 1.5 percent from 1Q/2016. It had adjusted quarterly net profits of USD 22.3 million, down from USD 23.2 million the year before.