Supermodel Bar Refaeli seeks tax relief

Get The AJN Newsletter by email and never miss our top stories Free Sign Up

GAD LIOR

JERUSALEM — Supermodel Bar Refaeli recently filed a request to stop paying taxes in Israel, claiming she spends most of her time abroad and that “the centre of my life is no longer in Israel”.

It is in the Israeli Tax Authority’s interest that Bar Refaeli continue paying her taxes in Israel, but a source said that her request cannot be turned down as she does not stay in Israel more than six months every year and most of her income is generated from her work abroad.

According to estimates, Refaeli has earned about $2 million in the past two years, for which she was meant to pay income tax of more than NIS 3.5 million (47 per cent tax in 2008 and 46 per cent in 2009).

In addition, she was forced to pay national insurance in Israel, and because the tax ceiling was removed last year, for each dollar Refaeli earned she was meant to pay 12 more cents for national insurance and health insurance in Israel —- an extra NIS 250,000.

Refaeli’s income is generated from her work as a fashion model and her participation in many advertising campaigns.

Refaeli has founded a company abroad -— apparently in Singapore or Hong Kong —- where she will pay a maximum tax of 25 per cent. This means she will pay abroad only half the amount of taxes she would have to pay in Israel.

Under Israeli law, a person who is absent from the country at least 184 days a year and who states that the centre of his or her life is not in Israel (a person who does not have a partner or children living in Israel, a house and active bank accounts in Israel and whose income is mainly generated abroad) does not have to pay taxes in Israel.

According to border control records, Refaeli spent only five months in Israel in the past two years. Moreover, her income in Israel is very small compared to her income abroad, and the companies she works for are mostly foreign companies.

YNETNEWS