Supermodel’s Tax Fight Helps Prompt Israel to Redefine Residency

Israeli tax authorities are planning to tighten the definition of a resident for tax purposes, partly to avoid costly court battles such as the one involving supermodel Bar Refaeli.

The current criteria for residency, last amended in 2003, are open to broad interpretation, according to tax authorities.

Roland Am-Shalem, senior deputy director general of the tax authority, told Bloomberg Tax Feb. 6 that a committee is “examining a more objective definition with simpler criteria in order to create greater certainty.”

The committee will consult with practitioners and present proposals to the tax commissioner “within months,” Am-Shalem said. Once approved, they ...