To classify the taxpayer's compensation, it must be compared to the reason for which it was received. If the compensation is paid from taxable income as defined in Chapter B of the Income Tax Ordinance (withholding rate of up to 47 percent) or Chapter E of the Ordinance (income from capital gains). If the goal of the compensation is to compensate the taxpayer for the loss of the source of income rather than for the revenue from daily activities, it will be taxed under Chapter E of the Ordinance (Capital Gains).