Israel's tax authority says Victoria's Secret supermodel Bar Refaeli and her mother are suspected of tax evasion for allegedly failing to report millions of dollars in income earned abroad and an array of luxury items that the model received. Refaeli, who has fronted ad campaigns for Agent Provocateur, L’Oreal, Victoria’s Secret, and Chanel, among others, reportedly spent 12 hours in questioning at the Tax Authority offices in Tel Aviv on Wednesday, in connection with what authorities are labeling a massive tax evasion scheme.
The model reportedly failed to disclose in official tax documents a number of celebrity perks, including that she did not pay rent for her apartment in Tel Aviv and that she received free Range Rover and Lexus cars she received in exchange for published photos of herself with the cars, thereby failing to pay taxes on any of the aforementioned things. The court also alleges that Refaeli tried to hide the fact she was a resident of Israel by living in an apartment rented by her family.
Refaeli was arrested in a home raid this week and the Tel Aviv Magistrate’s Court determined today that she can only leave Israel in coordination with authorities and after depositing a sum of NIS 250,000 (nearly $65,000). A third party would also have to put up a guarantee of NIS 500,000.
Refaeli’s lawyers have rejected the allegations. “This is a taxation issue that raises the discussion of who is considered a resident of Israel,” Giora Aderet said. Refaeli has long argued with Israeli authorities about her resident tax status.