Simple tax planning could boost Netanyahu's net pay to NIS 20,000 a month.
Tax lawyer Adv. Ziv Sharon says that Prime Minister Benjamin Netanyahu is overpaying NIS 5,000 on his taxes a month, and that he is eligible for a lower tax rate. He says that simple tax planning could boost Netanyahu's take-home pay to NIS 20,000 a month.
The Prime Minister's Bureau yesterday's disclosed Netanyahu's pay slip for December 2010 on his Facebook page. His net salary was NIS 15,027.43, after paying the maximum marginal tax rate of 45% and other deductables on his NIS 43,952.92 gross salary for the month.
Sharon says that there is no reason for Netanyahu to pay any use value on his armored car, since it is solely used for work purposes and was designed and purchased at the specifications of the Israel Security Agency (Shin Bet). Since the use value of a company car quantifies a private benefit, it does not apply in this case. Netanyahu could also apply legal technicalities to equate his status with that of the IDF chief of staff, who does not pay use value on his car.
Sharon also says that Netanyahu should not pay for his four daily newspapers. "There is no question that it is important for every prime minister to know the mood of the people, including via feedback from newspapers. Therefore, there is no justification to tax him for a private benefit of newspapers, especially since in a country like ours, no prime minister gets real pleasure from the newspapers."
Sharon notes that Netanyahu will pay more taxes in 2011 because the Economic Arrangements Law 2011-12 abolished tax recognition for travel and related expenses.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011
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