The Hollywood mogul at the center of one of the corruption cases against Prime Minister Benjamin Netanyahu testified Thursday that he had asked the premier about how to “solve” tax exposure issues if he returned to live in Israel.
Speaking during the fifth day of his testimony, and his third day of cross-examination, Arnon Milchan noted that he had also met with Yesh Atid leader and then Finance Minister Yair Lapid on the issue.
But in stating that he had spoken with Netanyahu on the issue, the 78-year old tycoon also apparently contradicted testimony he gave police, the latest instance in which attorneys expressed frustration with changes to his accounts.
The case, called Case 1000, revolves around allegations that the prime minister sought to advance legislation to increase the length of time Israeli citizens returning to live in Israel from abroad can enjoy tax exemptions on foreign income from 10 to 20 years. The law, which was passed in 2013 and has since been dubbed the “Milchan Law” in the press, would have significantly benefited the producer.
The indictment alleges that Netanyahu misused his authority and power to help obtain benefits for Milchan, including the tax break extension and a new visa, and that this effort was part of a give and take relationship between the two, with the former lavishing luxury champagne and cigars on the prime minister and his wife.
Asked if he had ever discussed the tax exemption issue with the prime minister, Milchan admitted to defense attorney Amit Hadad that he had.
“It could be that I mentioned it to him. I asked him how we solve this [problem],” Milchan told the court.
When reminded by Hadad that he had told the police he had not spoken about it with Netanyahu, Milchan said simply “There are things which I can almost not remember.”
Earlier this week, prosecutors expressed annoyance at Milchan for giving the court a different account than he gave to police during the years-long investigation. At the time, Hadad complained about Milchan being prompted to recall his original testimony.
Hadad also asked about the 10-year US visa Milchan secured in the mid-2010s after his initial request for the long term permit was denied. Milchan previously testified that he sought help from several officials, including then-US secretary of State John Kerry.
“Netanyahu didn’t help, we can move on. I got one sentence from him – I don’t give out visas and I can’t help,” said Milchan, who has been questioned on the topic several times over the last few days.
At one point during the hearing Netanyahu entered the Jerusalem District Court hall to observe the proceedings, joking to supporters outside “You’ve come to see the best show in town.” The premier has denied any wrongdoing and has portrayed his legal woes as an attempt to push him from power with trumped up charges.
Milchan’s cross examination will recommence on Sunday.
Sara Netanyahu, in the United Kingdom for the testimony of Arnon Milchan in Prime Minister Benjamin Netanyahu’s corruption trial, is seen on a screen at the Jerusalem District Court on June 25, 2023 (Oren Ben Hakoon/POOL )
The Israel-born producer has been testifying remotely from the Old Ship Hotel in Brighton, UK. The prime minister’s wife Sara, who is alleged to have received expensive jewelry and other luxury goods from Milchan, traveled to London to be there in person for his testimony.
During Thursday’s hearing, Judge Rivka Friedman-Feldman appeared to tacitly chastise Sara Netanyahu after she was seen kissing and embracing Milchan in the room where he is testifying from before the hearing began.
“Mr. Milchan and anyone else is not allowed to speak with people connected to the trial. Someone sitting in the hall cannot speak with Mr. Milchan until the end of his testimony, not in the hall and not outside of it,” insisted Friedman-Feldman.
