Refaeli had asked the Tax Authority to be recognized as a foreign resident to avoid paying taxes in Israel.
The Israel Tax Authority is leaning toward denying supermodel Bar Refaeli's request to be considered a foreign resident for tax purposes. The position of the Kfar Saba Assessors Office is that she does not meet the foreign resident test, and she is therefore liable to Israeli taxes.
Refaeli had asked the Tax Authority assessor in Kfar Saba to be recognized as a foreign resident, which would result in her not paying taxes in Israel, but in the country where she has registered her business, where the tax rate is lower. As a supermodel, her income is substantial, and any reduction in her taxes amounts to a lot of money.
Factors in the residency test include the taxpayers' time spent in Israel. The Tax Authority does not believe that Refaeli meets all the criteria for recognition as a foreign resident.
Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2010
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