He received $968,398 in other compensation, including personal use of company aircraft valued at $394,249 and $50,458 for country club membership dues.
As in most countries in the EU, the value of personal use in Israel is significantly biased downwards for tax purposes; i.e., it is lower than the value of the real benefit.
A recent change in company car taxation policy has cancelled the price groups; instead, the value of personal use is calculated as a constant percentage of the purchase price.
In this regard, we would like to note that a recent report [30] which summarizes the company car market for 2011, a year after the last reform in the value of personal use calculation, points out that the absolute number of company cars in Israel remains constant whereas their share in the total fleet has slightly decreased to 12.2%%.
"The value of your personal use of a state provided vehicle and chauffeur services and taxable meals when traveling are fringe benefits reported as income on your Form W-2," the letter began.
PERKS/OTHER Miscellaneous pay, not linked to performance, that includes such disparate items as moving expenses, personal use of corporate aircraft, and the value of assorted other benefits, including contributions to 401(k) plans and company-paid premiums for supplemental life insurance.
He took $10 million to $12 million in fees for personal use, based on the falsely inflated value of his firm, and he used $15 million to $20 million of investor money to repay other investors.
Relatives and friends who stay in the property for free or less than fair value are considered personal use.
She even shows him the pictures that her children e-mail to her. "Many companies recognize the value of allowing limited personal use of e-mail," Mr. Segarnick said.
"Under Section 132 of the Internal Revenue Code, the value of transportation services provided for personal use must be included in income," the report said.
