Take That, Mr. Murdoch

Tax inspectors step in a hornets' nest

It was Israel's biggest-ever tax raid: On Oct. 20, dozens of tax inspectors descended on the offices of a Jerusalem-based unit of News Corp., the media giant controlled by Rupert Murdoch. Grabbing files and computers, they were gathering evidence for an investigation into the subsidiary, News Datacom Research Ltd., for allegedly hiding $150 million in income earned by selling its sophisticated technology for decoding satellite television transmissions around the world. The inspectors went on to seize evidence from the company's lawyers and accountants.

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