Zelekha demands VIPs pay tax on their free medical benefits - Haaretz

Subscribe to Print Edition

Wed., October 03, 2007 ,

Israel Time: 11:36 (EST+7)

web haaretz.com

Back to Homepage

Print Edition

Diplomacy

Defense

Arts & Leisure

Real Estate

Jewish World

National

Advertising

Magazine

Week's End

Business

Opinion

Rosner's Domain

Anglo File

Books

Travel



		Accountant General Yaron Zelekha. (Tomer Appelbaum)

del.icio.us

Digg It! new

Last update - 09:30 30/09/2007

Zelekha demands VIPs pay tax on their free medical benefits

By Zvi Zrahiya, Haaretz Correspondent

Accountant General Yaron Zelekha is not going quietly: In one of his last moves before Finance Minister Roni Bar-On attempts to end his tenure, Zelekha is initiating a major change for a very influential group of former politicians. He is demanding that 400 former VIPs who receive state subsidized medical and nursing home care pay taxes on these benefits.

The Accountant General's Office has asked the Health Ministry and the Tax Authority for their opinions.

Th

	Advertisement

e benefits for the former VIPs now amount to NIS 13 million a year. The benefits were granted in the 1950s, when the original group of beneficiaries - judges - requested not to belong to the health funds which were all linked to political organizations. Then prime minister, David Ben-Gurion, decided to grant free medical care to those judges who did not want to identify with any specific political party.

The benefits were widened to more and more former VIPs: minister, MKs, judges, chief rabbis, religious court judges and ministry director generals among others - but the perk was scaled back and only those who took office before 1986 are now entitled to the free medical care. The insurance also applies to spouses, and certain dependents.

The group of 400 is divided into two: those with full rights including former Supreme Court justices, ministry director generals and chief rabbis.

These VIPs receive benefits include purchasing medicine not included in the health basket, free private medical treatments and consultations, health insurance overseas and other payments.

The second group includes judges, ministers and MKs who have more restricted rights to repayments.

Both groups do not receive dental care, plastic surgery or treatments overseas.

The costs can reach tens of thousands of shekels a year, but it is tax free. As the benefits also include nursing home care, in some cases the sums can reach more than NIS 10,000 a month, or over NIS 120,000 a year. About 70 percent of all the expenses, some NIS 9 million a year are for such care.

The treasury is considering several proposals on how to tax the benefits. One idea is to simply tax all the benefits according to the actual amount paid out. Another proposal is to set an artificial sum that will be considered taxable for all such VIPs. No decision has yet been made, and the matter is still under discussion between the ministries.

The Tax Authority said it is examining the matter in the wake of the accountant general's request. Zelekha's response was not received before closing.

Bookmark to del.icio.us


	Lights out
	Electric company cancels emergency bond issue due to credit rating reduction fears.


	No free lunches
	Accountant General Zelekha demands VIPs pay taxes on their free medical benefits.




1.	Go Yaron!!	10:12	\|	Jewish State	30/09/07

2.	I have to pay on every grush that I earn	22:19	\|	Israeli	30/09/07

3.	Those free lunches...	08:59	\|	Esther	01/10/07

4.	I love it	12:49	\|	rpc	01/10/07

5.	Why should anyone be surprised ?	16:07	\|	Alex	01/10/07

6.	Biased (understatement)Alex#5	19:46	\|	notblackorwhite	01/10/07

7.	No free meals	11:32	\|	Giora Nevo	03/10/07

Today Online


	Bradley Burston: Yes, Sen. McCain, America is a Christian nation
	Responses: 69


	Mideast summit may be delayed to give sides preparation time
	Responses: 34


	Rosner: Timetable is true stumbling block for Israel, Palestinians
	Responses: 7


	Editorial: Occupation becoming more like political apartheid
	Responses: 29


	Ruth Gavison: Right of return can't torpedo peace prospects
	Responses: 14


	Dafna Golan: A 9-year-old is threatening the Jewish majority
	Responses: 8

Rosner's Domain

Israel-Palestine: Forget the right of return, the real problem is timetable

* Poll: what will be the most difficult Israeli/Palestinian issue to overcome?

* Guest: Why there's no need to condemn John McCain for the "Christian Nation"?

* American Jews are in great danger. Here's the proof

More Headlines
03:08 Mideast summit may be delayed to late November


11:15 Two Palestinians, including Hamas militant, killed in IDF strikes on Gaza


08:27 PM denies tension with IDF chief over release of Gaza prisoners


08:18 Dichter: I did not call for end to investigation into PM Olmert


08:21 Lev Leviev funds religious programs in state schools


04:17 U.S. Jewish groups to lobby Interpol for action on AMIA bombing


06:24 Despite new law, no fines yet for cyclists without helmets


10:12 17 years after German reunification, xenophobia renews East-West divide


22:57 Father, 2 of his children killed in road accident in Jordan Valley


22:13 American prof. questions role of halakha in modern legal system