When does someone have a 'lucrative interest'?

In short, this applies when the disparity between the investment and the entitlement to profits is deemed excessively large by the tax authorities.

For example, this occurs when an employee, with a relatively modest investment, claims a significant portion of the company's profits. Each case must be assessed individually, but this applies when the difference between the investment and the right to profit sharing is excessive. If the Tax Authority determines that there is a lucrative interest, the taxation is handled in box 1, and the employee is required to pay regular income tax, up to a maximum of 52%.