How do I calculate BIK on a gift?

I own a small company with one employee - myself and am a proprietry director. If I give a gift from my company to myself to the value of say €1000 I must Pay BIK. However, how should this be calculated?
I will include the BIK with my taxes(paye,prsi, levies) when my next P30 return is due, ie it will be paid from my company.

For example if my paye,prsi, levies total to 50%, which of the following scenarios is true

1. My BIK would be €1000 * 50% = €500. So I would pay an extra €500 when submitting my next P30 return.

2. My BIK would be €1000 * 50% = €500. This €500 is considered Net therefore I would pay an extra €1000 when submitting my next P30 return.

Note: I phoned Revenue twice and both times they said scenario 1 was valid. I also have this on an email from Revenue. However I have been told from another source that this is not correct and scenario 2 is! Hence confusion

Any help would be appreciated!!
Thanks

€1,000 added to your taxable pay. €500 additional tax. The €1,000 then deducted to arrive at after tax pay.

BazFitz, Are you saying you disagree with scenario 1. That the €500 additional tax is considered net?

what you receive is Net = 1000 -- gross it up to 2,000

pay mr. tax man 1000