The prime minister's private residence in Caesarea
Photo: Shaul Golan
PM Netanyahu to pay tax on private residence's expenses
Israel Tax Authority-led team decides expenses for private needs in PM Netanyahu's private Caesarea residence will henceforth be deemed taxable; expenses related to administering of duties will remain tax-free; any actions 'bettering residence' will also be taxable.
Prime Minister Benjamin Netanyahu will pay taxes on his private Caesarea residence's expenses, the state told the High Court Thursday following a petition submitted by attorney Shachar Meir calling for the state to be obligated by the court to do so.
After the petition was submitted, a team was created to examine the issue with its findings presented to the court. Expenses should be divided into several groups, the state said, including expenses used for his official role—which will not be taxed—and expenses used for private needs—which were deemed taxable benefits.
Expenses in the PM's private Caesarea residence will now be taxable (צילום: שאול גולן "ידיעות אחרונות")
Not taxing the private residence's expenditures, the state said, was considered the norm for benefits the prime minister received since he is on the job 24 hours a day, seven days a week, which was why the person serving in the role should receive preferential terms in their private residence as well.
PM Netanyahu's official expenses will remain tax-free (Photo: Motti Kimchi)
With Thursday's Supreme Court hearing, however, the state reversed its position on the matter, with one reason cited being that the residence was used for completely private affairs, hence the need to tax such uses. The state also decided any actions that "better the private residence" will be taxable.
The team created to examine the issue was comprised of professionals from multiple government ministries and agencies, mostly from the Israel Tax Authority.
