The Knesset Finance Committee discussed this morning (Tuesday) the Prime Minister's Office's request to approve a tax refund of approximately half a million shekels from the state treasury for Prime Minister Benjamin Netanyahu.
Netanyahu will receive reimbursement for expenses from January 2009 to December 2017, amounting to hundreds of thousands of shekels, which he is required to pay as tax on the expenses the state pays for his private home in Caesarea.
Committee Chairman Moshe Gafni: "I want to know what the Tax Authority's position is regarding taxation of a prime minister's expenses for the purpose of his work as prime minister. What is your position on this matter?""
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Tax Authority Representative: The Law
Gafni: "I don't know the law, you tell me your position.".
Representative: We have no position.
Gafni: Does a prime minister have to pay tax on his expenses in his role as prime minister? Must he pay?
Representative: Right now...
Gafni: I don't know right now, yesterday, tomorrow... Wait a minute, I don't understand. Guy, look at me, don't answer anyone, because I want to be focused, I don't want to make a mistake. The Tax Authority determines the money, the tax, I want to know - over all the years, has the Tax Authority's position been such that a tax should be collected from a prime minister on expenses incurred in fulfilling his duties?.
Representative: Expenses for the benefit of the employer, this is something we discussed before the break, this is the legal situation. Regarding one factual situation or another, we will not address the procedures that were or were not taken.
Gafni: I didn't understand, did you speak when I wasn't there? I'm asking a question, don't divide it into several parts. I'm asking: Have you collected tax from any prime minister over the years, for expenses that are necessary for the fulfillment of his duties? Yes or no?
Representative: Can't answer that. Yes or no we collected tax. I don't know either, by the way.
Gafni: What do you mean, don't know? You're a veteran, I trust you all the time. If you don't know, then I can't trust you (shouts at the committee members who come in to say, "Do me a favor" and turns to the representative): I want an answer, Guy, I don't intend to let you go. You are a central factor in this whole matter. You know what? You issue a tax, and you don't know how to answer here in the committee - we are the service committee! You don't know how to answer me, you don't have to, you don't know what the facts are either, you don't know anything and you are putting us in the most unpleasant situation possible. What do I say to the people of Israel if the Tax Authority, you are part of us, and in general, (shouts really) Why isn't the director of the Tax Authority here?? Why? Are you running away from every discussion like this? Only I have to stand at the forefront?? Give answers! Did prime ministers pay taxes for generations - yes or no!""
MK Miki Zohar of the Likud said in the debate: "There is an important issue here - the status of a prime minister in the State of Israel. If they are looking to make him economically disabled or persecuted, and if he has to worry all day and deal with economic matters. It could be anyone. There is unanimity that it would be unthinkable for a prime minister to pay half a million shekels. They want to harm him personally.".
MK Mickey Levy of Mish Atid attacked the absence of Blue and White MKs: "The one who gives the seal of approval to this corrupt move is the Blue and White party, whose representatives don't even have the courage to come to the discussion. He is asking for an order to bring Benny Gantz and Blue and White members to the committee. If Gantz agrees to give up everything, the word "substitute" should be removed from the document. If he doesn't agree, he's lying.".
Deputy Director General of the Prime Minister's Office Ronen Peretz explained to the MKs: "The decision to tax the Prime Minister was a personal decision, Benjamin Netanyahu specifically. As I said, it was not for any other prime minister and it will not be for any other prime minister because of the law that came into effect in 2018. I think there is no justification for this and we would not want to be here, we have no such intention. There is no justification for personally taxing the Prime Minister.".
Likud said that this was not a special benefit: "Prime Minister Netanyahu is not demanding any special conditions. The Finance Committee will tax Netanyahu just like previous prime ministers. This was an outrageous and personal attempt to tax Netanyahu with a tax that no other prime minister has been taxed with. There will not be one law for Netanyahu and another law for previous prime ministers.".
